KT&G launches new factory in Indonesia to complete global production system

KT&G has officially commenced operations at its new factory in Pasuruan, East Java, Indonesia. This expansion completes the company’s ‘global five-corner production system,’ which connects production hubs in South Korea, Indonesia, Russia, Kazakhstan, and Türkiye.

The new facility is equipped with nine cigarette manufacturing lines and is expected to produce up to 21 billion cigarettes annually. When combined with the existing factory’s capacity of 14 billion, Indonesia will become KT&G’s largest overseas production base, with a total annual capacity of 35 billion cigarettes. Leveraging Indonesia’s strategic location between the Pacific and Indian Oceans, the plant will serve as an export hub for markets including Taiwan, Mongolia, Nigeria, and India.

This project is part of a larger growth investment strategy initiated in early 2023. With the completion of this facility, KT&G has largely finalized a major overseas capital expenditure (CAPEX) plan totaling 2.4 trillion won. The company aims to increase its overseas production share to over 60% by 2028, with total capacity across its four major international hubs projected to reach 65 billion cigarettes per year.