KT&G's new CEO Kyung-man Bang embarks on overseas business operation visit, starting with the global export hub in Indonesia
- KT&G plans to make Indonesia its largest global production base by building the second and third factories and expanding the company's annual production capacity in Indonesia to 35 billion sticks
- CEO also had meetings with local employees and monitored the local business performance
SEOUL, South Korea, April 28, 2024 /PRNewswire/ -- KT&G's new CEO Kyung-man Bang has officially embarked on his first overseas business operation visit since assuming the role of CEO, demonstrating his dedication to delivering the company's mid-to-long-term vision of becoming a Global Top-tier company.He commenced with a visit to the global export hub KT&G is developing in Indonesia. He participated in a groundbreaking ceremony for KT&G's second and third factories in Indonesia, visited the Asia Pacific Headquarters located in Jakarta, and engaged in meetings with local employees.
The groundbreaking ceremony for KT&G's second and third factories in Indonesia took place on April 26, 2024, in Surabaya, East Java Province. KT&G CEO Kyung-man Bang, Governor of East Java Province Adhy Karyono, Deputy Minister of the Indonesian Ministry of Investment(BKPM) Andi Maulana, and Commercial Attaché of the Embassy of Korea in Indonesia Jong-ho Han attended the ceremony, alongside 80 other key officials.
KT&G's second and third factories in Indonesia, spanning approximately 190,000 square meters, are set to commence operations in 2026. The total production capacity of the second and third factories combined is projected to reach 21 billion cigarette sticks per year. KT&G plans to make Indonesia its largest global production base with the annual production capacity (including existing factory capacity) of 35 billion cigarette sticks, and focus on global market expansion. Leveraging its increased production capacity, KT&G strives to strategically foster Indonesia as its biggest global production base for export products and accelerate its global market expansion.
The construction of the second and third factories in Indonesia is part of KT&G's growth investment plan unveiled at its Future Vision Declaration Ceremony held in January of last year.
At the vision declaration ceremony, KT&G presented its mid-to-long-term vision of becoming a Global Top-tier company and outlined its growth strategy to develop Next Generation Products ("NGP"), overseas cigarettes, and Health Functional Food as its three core business areas. The company also shared its plans to increase the proportion of its overseas sales revenue to over 50% of its total sales revenue by 2027.
During the ground breaking ceremony on the 26th, KT&G CEO Kyung-man Bang said: "We have been committed to delivering and accelerating our mid-to-long-term vision of becoming a Global Top-tier company by executing vigorous investment strategies and leading bold innovations." "Indonesia serves as our primary global export hub, driving the expansion of our export business in Asia Pacific and the Middle East markets. We will continue to develop the global production hub in Indonesia as a core growth engine for the company," Mr. Bang added.
Following the groundbreaking ceremony, Mr. Bang visited KT&G's first Indonesian factory located in Surabaya to meet and engage with local employees. In a gesture of cultural appreciation and to foster better communication, Mr. Bang wore Indonesia's traditional Batik attire, seeking to gain deeper insights into the local employees' culture. The day before the groundbreaking ceremony, Mr. Bang made visits to both the Asia Pacific Headquarters in Jakarta and the Western Jakarta branch of the Indonesian subsidiary. During these visits, Mr. Bang closely assessed local business operations and market dynamics. He also engaged with the local employees, attentively listening to their perspectives and insights.
Last October, KT&G held a groundbreaking ceremony for its new state-of-art manufacturing plant in Almaty Province, Kazakhstan. KT&G's new Kazakhstan factory is designed to address export demands across the Eurasian region. KT&G has also been proactively responding to the domestic demand by expanding NGP production facilities at the Daejeon factory in November of last year. Furthermore, KT&G has recently carried out an organizational restructuring aimed at accelerating the company's global market expansion and enhancing business profitability. The restructuring has separated the Asia Pacific Headquarters and Eurasia Headquarters from the company, establishing them into separate business entities. Senior executives have been deployed to each headquarters to oversee management.
SOURCE KT&G Corporation
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