KT&G's No. 2 plant in Indonesia begins operations

KT&G Corp., Korea's dominant tobacco company, said Wednesday its second plant in Indonesia has begun operations as it expands its presence in Southeast Asia. The new plant is located in Pasuruan, East Java, while KT&G's first tobacco manufacturing plant in Indonesia is in Surabaya, the company said in a press release. The new Indonesian plant will serve as KT&G's manufacturing base in Southeast Asia, producing goods for export to neighboring countries and other markets, it said. The plant has an annual production capacity of 21 billion cigarettes, bringing KT&G's total production capacity in Indonesia to 35 billion cigarettes. KT&G operates tobacco plants in five countries — Korea, Russia, Turkey, Indonesia and Kazakhstan. The combined annual production capacity of its four overseas plants is expected to reach 65 billion cigarettes, the company said, without specifying when that target would be reached. KT&G's three domestic plants have a combined annual production capacity of 56 billion cigarettes. The company aims to generate half of its sales overseas in 2027. It is targeting sales of