KT&G Corporation completes 2nd and 3rd factories in Pasuruan, Indonesia, to produce up to 21 billion cigarettes a year for export

【JAKARTA, Indonesia—Aulia Maulida Hamdani, Correspondent】KT&G Corporation has completed its second and third factories at the Pasuruan Industrial Estate (PIER) in East Java, Indonesia, and will begin producing up to 21 billion cigarettes annually for export.
According to local media reports on the 6th, KT&G Corporation held a completion ceremony that day for the second and third factories in Pasuruan, East Java, attended by KT&G Corporation President Bang Kyung-man, South Korean Ambassador to Indonesia Yoon Soon-gu, Pasuruan Deputy Regent Shobi Asriri, and others.
The two factories, completed with an investment of about $453 million (about 610 billion won), have a combined annual production capacity of 21 billion cigarettes. As a result, KT&G Corporation’s annual production capacity in Indonesia has increased substantially, from 14 billion to about 35 billion cigarettes.
KT&G Corporation President Bang Kyung-man said, “Today, with the completion of KT&G Corporation’s second and third factories, we have fulfilled our promise to the Indonesian government and people. A factory is not simply about facilities and production capacity; it is a place where people and local communities grow together.”
Bang went on to say, “With an annual production capacity of 35 billion cigarettes, our Indonesian operations occupy a strategically important position in KT&G Corporation’s global business. They will become one of the major production hubs for our global operations, which supply products to at least 90 countries.”
Most of the cigarettes produced at the new factories will be supplied for export, and Indonesia’s share of KT&G Corporation’s global production and supply chain is expected to grow further.
KT&G Corporation is a global tobacco company that sells its products in at least 140 countries. In Indonesia, it markets brands including Esse and Juara. Its manufacturing operations in Indonesia are run through Trisakti Purwosari Makmur (TSPM), and the company has steadily expanded its local production facilities and capacity since acquiring TSPM in 2011. This expansion is part of KT&G Corporation’s international business strategy to develop Indonesia as a major production base for global markets and strengthen the competitiveness of its overseas operations.
With the opening of the second and third factories, KT&G Corporation’s annual production capacity in Indonesia has risen to about 35 billion cigarettes, of which up to 21 billion cigarettes produced at the new factories will be supplied for export. The expansion is also expected to create around 1,130 jobs and boost local logistics and related industries, helping establish Indonesia as a key global production base for KT&G Corporation.
[email protected] Aulia Maulida Hamdani, Correspondent Reporter