Bang Kyung-man, KT&G President, Conducts 'Global On-site Management' in Export Hub Indonesia

Attended Groundbreaking Ceremony for Indonesia 2nd and 3rd Plants
Annual Production of 35 Billion Units... Establishing Largest Overseas Production Facility
Conducted Local Market Assessment and Employee Recruitment Meeting

Bang Kyung-man, President of KT&G, embarked on global on-site management through the groundbreaking ceremony of a new factory in Indonesia.

Bang Kyung-man, President of KT&G (fifth from the right), Adi Karjono, Governor of East Java Province, Indonesia (fifth from the left), Andi Maulana, Deputy Minister of Investment of Indonesia (fourth from the left), and other key officials are posing for a commemorative photo at the groundbreaking ceremony of Indonesia's Plant 2 and 3 held on the 26th in Surabaya, Indonesia.
[Photo by KT&G]

According to KT&G on the 28th, President Bang attended the groundbreaking ceremony for Indonesia's 2nd and 3rd factories held on the 26th in Surabaya, East Java Province. The Indonesia 2nd and 3rd factories are being built on a site of 190,000㎡ (approximately 57,500 pyeong) with an annual cigarette production capacity of 21 billion sticks, aiming for the first operation in 2026. KT&G plans to develop Indonesia into its largest overseas production base with an annual production scale of about 35 billion sticks, including existing factories, and focus on expanding its global market.

The construction of the Indonesia 2nd and 3rd factories is part of KT&G's growth investment announced at last year's 'Future Vision Declaration Ceremony.' The company revealed a growth strategy focusing on three core businesses: electronic cigarettes (NGP), overseas cigarettes (Global CC), and health functional foods, along with a mid-to-long-term vision of 'leaping to a global top tier.' It also presented plans to strengthen overseas direct business capabilities and raise the global sales ratio to over 50% by 2027.

President Bang emphasized, "The company has declared a mid-to-long-term vision of 'leaping to a global top tier' and continues bold investments and innovations for the future. Indonesia will be a key growth engine for achieving this vision as a major hub for KT&G's export business targeting the Asia-Pacific and Middle East markets."

Following the groundbreaking ceremony, President Bang, along with the management team, wore the traditional Indonesian attire Batik and visited Indonesia's 1st factory in Surabaya to hold a meeting with local employees. During this event, they communicated with the staff and took time to understand the local culture. On the 25th, he also visited the Asia-Pacific Headquarters (CIC) and the West Jakarta branch of the Indonesian corporation in Jakarta to check on business status and market conditions.

Meanwhile, KT&G held a groundbreaking ceremony last October for a new factory producing cigarettes for export to the Eurasian region in Almaty Province, Kazakhstan. Domestically, KT&G has actively responded to increasing demand both at home and abroad by expanding electronic cigarette production facilities at the Daejeon factory last November. Recently, through organizational restructuring, the Asia-Pacific Headquarters and Eurasia Headquarters were converted into CIC systems, and vice president-level executives were deployed to overseas regional headquarters to expand the global market and improve profitability.