KT&G Corp. announced that it has begun operations at its second tobacco manufacturing plant in Indonesia as it expands its production and export capacity in Southeast Asia. The facility in Pasuruan, East Java, has an annual capacity of 21 billion cigarettes, joining the Surabaya plant to bring KT&G’s total Indonesian capacity to 35 billion cigarettes. The company said the new plant will serve as a manufacturing base for exports to neighboring countries and other markets.
KT&G operates tobacco plants in South Korea, Russia, Turkey, Indonesia, and Kazakhstan, with its four overseas plants expected to reach combined annual capacity of 65 billion cigarettes. The company aims to generate half of its sales overseas by 2027 and is targeting 10 trillion won ($6.8 billion) in sales next year, up from 6.58 trillion won in 2025. Conventional cigarettes account for about 90% of sales, with the remainder coming from heat-not-burn products.
