Where is KT&G’s second Indonesian tobacco plant located and what will it produce?

The plant is located in Pasuruan, East Java. It will manufacture cigarettes for export to neighboring Southeast Asian countries and other markets, serving as KT&G’s manufacturing base in the region.

How much production capacity does KT&G now have in Indonesia?

The new plant can produce 21 billion cigarettes annually, bringing KT&G’s total Indonesian production capacity to 35 billion cigarettes. The company expects the combined capacity of its four overseas plants to reach 65 billion cigarettes.

What are KT&G’s overseas sales and product expansion targets?

KT&G aims to generate half of its sales overseas in 2027 and is targeting sales of 10 trillion won next year. Alongside conventional cigarettes, it plans to strengthen heat-not-burn products and health functional foods.

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

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Summary

KT&G Corp. began operations at its second tobacco plant in Pasuruan, East Java, on Wednesday. The facility will serve as the company’s Southeast Asian manufacturing base, producing cigarettes for export to neighboring countries and other markets. It has annual capacity of 21 billion cigarettes, raising KT&G’s Indonesian capacity to 35 billion. KT&G aims to generate half of its sales overseas in 2027 while expanding its HNB and health functional food businesses.

Key Facts

KT&G operates tobacco plants in Korea, Russia, Turkey, Indonesia and Kazakhstan.
The combined annual production capacity of KT&G’s four overseas plants is expected to reach 65 billion cigarettes, while its three domestic plants can produce 56 billion annually.
KT&G is targeting sales of 10 trillion won next year, compared with 6.58 trillion won in 2025.
About 90 percent of KT&G’s total sales come from conventional cigarettes, with HNB products accounting for the remaining 10 percent.

By Yonhap

Published Oct 7, 2026 11:31 am KST

KT&G Corp.'s No. 2 plant in Indonesia. Courtesy of KT&G

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 10 trillion won ($6.8 billion) next year, up from 6.58 trillion won in 2025.

While maintaining its focus on conventional cigarettes, the company said it will strengthen its heat-not-burn (HNB) and health functional food businesses.

Unlike e-cigarettes, HNB products contain tobacco. The tobacco is heated to a high temperature without being burned, producing an aerosol that users inhale.

The company generates about 90 percent of its total sales from its conventional cigarette business and the remaining 10 percent from HNB products.

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