KT&G, a leading South Korean tobacco company, is making significant strides in Indonesia with the groundbreaking of its second and third factories in Surabaya. This event, held on April 26, marks a crucial step in the company’s ambitious expansion strategy in the region.
A Visit to Mark New Beginnings
During his first trip to an overseas operation since becoming president and CEO, Kyung-man Bang visited not only the new factory sites but also KT&G’s Asia-Pacific headquarters in Jakarta. This visit underscores his commitment to steering the company towards becoming a global top-tier enterprise.
Expanding Production Capacity
Set to begin operations in 2026, these new facilities will span approximately 190,000 square meters. Once operational, they will boast a production capacity of 21 billion cigarette sticks annually. Combined with the existing facilities, Indonesia will host a total annual production capacity of 35 billion cigarettes, making it KT&G’s largest global production base.
Indonesia as a Global Hub
Indonesia plays a pivotal role in KT&G’s strategy, serving as the primary hub for exports across the Asia-Pacific and the Middle East. “Indonesia serves as our primary global export hub, driving the expansion of our export business in these regions. We will continue to develop the global production hub in Indonesia as a core growth engine for the company,” stated Bang.
Broadening Global Reach
In addition to its developments in Indonesia, KT&G is also expanding its global footprint with a new factory in Kazakhstan designed to cater to the Eurasian market. Furthermore, the company is increasing its capacity for next-generation products at its Daejeon factory, demonstrating its dedication to innovation and leadership in the tobacco industry.
Final Thoughts
KT&G’s robust investment and innovation strategies in Indonesia not only enhance its production capabilities but also solidify its position as a major player in the global tobacco market. This expansion is not just about scaling up production but also about setting a benchmark in the industry for growth and sustainability.
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