KT&G has begun full-scale operation of its new plant in Indonesia, completing a “global five-point production system” connecting Korea, Indonesia, Russia, Kazakhstan and Türkiye.

KT&G announced on the 7th that it held an opening ceremony for the new plant on the 6th (local time) in Pasuruan, East Java, Indonesia. KT&G entered the Indonesian market in 2011 by acquiring a local company and currently holds fourth place in local market share, led by its “ESSE” brand and local exclusive brand “JUARA.”

The new plant is equipped with nine cigarette manufacturing lines and is expected to produce up to 21 billion cigarettes annually. Combined with the existing plant’s annual production capacity of 14 billion cigarettes, Indonesia’s total production capacity will expand to a maximum of 35 billion cigarettes. Products manufactured there will be supplied not only to the Indonesian domestic market but also exported to Taiwan, Mongolia, Nigeria and India.

With the start of operations, a substantial portion of KT&G’s overseas facility investments totaling KRW 2.4 trillion announced in 2024 has been completed. The maximum annual production capacity of the four overseas production bases in Indonesia, Russia, Kazakhstan and Türkiye is projected to reach 65 billion cigarettes. KT&G plans to increase the share of overseas production to more than 60% by 2028.

Bang Kyung-man, CEO of KT&G, said, “We will strategically utilize our domestic and overseas production bases to enhance the competitiveness of our overseas business and continuously increase shareholder and corporate value.”

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