The new plant in East Java solidifies Indonesia as KT&G’s primary overseas production base. Once all nine manufacturing lines reach full capacity, the site will produce 21 billion sticks annually, which, when combined with the existing facility, brings Indonesia’s total output to 35 billion cigarettes. CEO Bang Kyung-man emphasized that this infrastructure will serve as the engine for the company’s global expansion, supplying markets as diverse as Nigeria, Taiwan, Mongolia, and India.
KT&G Completes Global Production Hub with New Indonesian Factory
With the inauguration of its Pasuruan facility on October 6, KT&G has finalized a five-country manufacturing network spanning South Korea, Russia, Kazakhstan, Türkiye, and Indonesia. This expansion marks the culmination of a massive capital expenditure program designed to secure the company’s foothold in the high-growth Asia-Pacific tobacco market.
This project represents a major milestone in KT&G’s KRW 2.4 trillion investment strategy initiated in 2023. By integrating production across these four international hubs, the company expects its total overseas capacity to hit 65 billion sticks. KT&G aims to push its offshore production share above 60% by 2028, leveraging logistics efficiencies to enhance both operational profitability and long-term shareholder value.
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