KT&G to Build New Factory in Indonesia

Business by 2FIRSTS.ai
Sep.11.2023
KT&G to Build New Factory in Indonesia
KT&G plans to build a new factory in East Java, Indonesia, with operations expected to start in 2026.

On September 11th, according to a report by the Korean newspaper "East Asia Daily", KT&G announced plans to construct a new factory in East Java province, Indonesia, scheduled to begin operations in 2026. This decision was made after reaching an agreement with the Indonesian Ministry of Investment.

 

The Indonesian Investment Ministry has pledged to provide various support and conveniences in accordance with local regulations. KT&G plans to proceed with the necessary procedures, such as board resolutions, once key matters such as the specific investment amount, method, and objectives have been determined.

 

The new factory is scheduled to start operating in 2026, and its products will be exported to overseas markets such as Southeast Asia. With this move, KT&G aims to establish Indonesia as a production base for exporting products abroad and is committed to expanding its international market.

 

This investment plan is part of KT&G's announced 5-year investment plan in core business areas, which is a part of the company's long-term growth strategy. The plan will focus on developing three major core business areas, namely NGP (non-combustible e-cigarettes), health functional foods, and global CC (traditional cigarettes).

 

In addition, KT&G plans to achieve over 10 trillion South Korean won in sales by 2027, based on investment in growth in its core business areas. It aims to increase its global business sales to over 50% by actively tapping into global markets, and to raise the proportion of non-traditional businesses such as NGP and health functional foods to over 60%.

 

Indonesian Investment Minister Bahlil Lahadalia has stated,"We, on behalf of the Indonesian government, warmly welcome KT&G's ongoing investment and plan to make every effort to ensure the smooth progress of the investment plan."

 

KT&G's President, Baek Bok-in, stated,"By establishing a new factory in Indonesia, the company aims to strengthen its expansion efforts in overseas markets such as Southeast Asia. We will continue to seize opportunities in foreign markets and strive to become a globally renowned enterprise through proactive investments and innovation."

 

This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

China Boton Sells Bubblemon Vape Brand to RELX Founder
China Boton Sells Bubblemon Vape Brand to RELX Founder
Boton Holding SPV agrees to sell, and the buyer agrees to purchase 5,100 shares of the target (equivalent to 51% of the target company's equity) at a price of ($13.84 million).
Business
Jul.11 by Vincent Yi; Ashe Wong
Korean Authorities Reveal List of Tax Evaders with Huge Debts
Korean Authorities Reveal List of Tax Evaders with Huge Debts
Approximately 70,000 individuals and companies in South Korea owe over 4 trillion won in unpaid taxes, according to Naver on November 15th.
Business
Nov.16 by 2FIRSTS.ai
Heated Tobacco Demand Increased, and Cigarette Demand Declined in South Korea in 2022
Heated Tobacco Demand Increased, and Cigarette Demand Declined in South Korea in 2022
According to South Korea's finance ministry, compared with 2021, the demand for traditional cigarettes dropped by 1.8% in 2022, while the need for heat-not-burn tobacco products soared by 21.3%.
Market
Feb.17
KT&G's Revenue Increases Due To The Strengthening U.S. Dollar
KT&G's Revenue Increases Due To The Strengthening U.S. Dollar
As of the afternoon of the 20th, KT&G was trading at KRW 85,900, up 1.90% (KRW 1,600) from the previous day. Kiwoom Securities Researchers assessed KT&G as a "beneficiary of a higher U.S. dollar" and maintained a "buy" rating.
Market
Sep.21
ELFBAR Entering Korea and to Appear in Stores by March
ELFBAR Entering Korea and to Appear in Stores by March
Setopia has signed distribution agreements for two ELFBAR products and plans to enter Korean convenience stores and large stores next month as the exclusive domestic supplier of the main e-cigarette product line "ELFBAR 600" in 8 flavors and "BC 5000" in 7 flavors.
Market
Feb.07
KT&G Maintains Lead, PMI's Profit up 163%, BAT Korea's Profit Down 12%.
KT&G Maintains Lead, PMI's Profit up 163%, BAT Korea's Profit Down 12%.
PMI Korea profit margin rose, KT&G's profit hit KRW 1.1T with 30.3% margin; BAT Korea's margin fell.
Market
Apr.12 by Bizwatch; Rui Tian