Settings

ⓕ font-size

  • -2
  • -1
  • 0
  • +1
  • +2

New KT&G CEO vows to make Indonesia global production hub

  • Facebook share button
  • Twitter share button
  • Kakao share button
  • Mail share button
  • Link share button
KT&G CEO Bang Kyung-man, fifth from right, attends the company's groundbreaking ceremony for its second and third manufacturing plants in Surabaya, Indonesia, Friday, with East Java Gov. Adhy Karyono, sixth from right, and Indonesian Deputy Minister of Investment Andi Maulana, seventh from right. Courtesy of KT&G

KT&G CEO Bang Kyung-man, fifth from right, attends the company's groundbreaking ceremony for its second and third manufacturing plants in Surabaya, Indonesia, Friday, with East Java Gov. Adhy Karyono, sixth from right, and Indonesian Deputy Minister of Investment Andi Maulana, seventh from right. Courtesy of KT&G

By Ko Dong-hwan

KT&G CEO Bang Kyung-man visited Indonesia to oversee the expansion of the company's manufacturing bases there to make the country a hub for its overseas market expansion plan, according to South Korea's major tobacco company, Monday.

Bang joined the groundbreaking ceremony for the company's second and third factories in Surabaya, East Java, Friday.

Bang was joined by Gov. Adhy Karyono of East Java, Deputy Minister of Investment Andi Maulana and Commercial Attaché of the Embassy of Korea in Indonesia Han Jong-ho, along with 80 other key officials.

Set to begin operation in 2026, the upcoming plants covering altogether 190,000 square meters of land will produce 21 billion cigarettes each year. With the new projects done, the company expects its Indonesian manufacturing capacity will reach 35 billion cigarettes per year and boast its biggest global base.

"We've been committed to delivering and accelerating our medium- to long-term vision of becoming a global top-tier company by executing vigorous investment strategies and leading bold innovations," Bang said during the groundbreaking ceremony. "Indonesia serves as our primary global export hub, driving the expansion of our export business in the Asia-Pacific and Middle East markets. We'll continue to develop the global production hub in Indonesia as a core growth engine."

KT&G CEO Bang Kyung-man takes a selfie with employees at the company's first Indonesian manufacturing plant in Surabaya, Friday. Courtesy of KT&G

KT&G CEO Bang Kyung-man takes a selfie with employees at the company's first Indonesian manufacturing plant in Surabaya, Friday. Courtesy of KT&G

Following the ceremony, Bang visited the company's first Indonesian plant in Surabaya to meet employees there. Wearing the traditional Indonesian attire, "batik," he sought to communicate with the workers and understand their local culture.

A day before, Bang visited the company's Indonesian subsidiary Asia-Pacific headquarters in Jakarta and its Western Jakarta branch.

Bang's latest Indonesian visit comes after the company in January last year announced its growth investment plan during the Future Vision Declaration Ceremony.

The plan revealed the company's aim to become a global market leader by focusing on next-generation products, cigarettes and health functional foods as three key products for global consumers.

The plan also included the company increasing its overseas sales to over 50 percent of its total sales revenue by 2027.

The company has recently restructured itself, splitting off its Asia-Pacific headquarters and Eurasia headquarters as separate companies to accelerate the company's global market expansion. Senior executives have been deployed to each of them to oversee management.

Last October, the company held a groundbreaking ceremony for its new manufacturing plant in Kazakhstan's Almaty region. The plant is expected to serve as the company's manufacturing hub for the Eurasian markets.

The company also expanded its production facilities for next-generation products in Daejeon last November to meet local consumers' demand.

Ko Dong-hwan aoshima11@koreatimes.co.kr


X
CLOSE

Top 10 Stories

go top LETTER