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SEOUL, South Korea, Sept. 11, 2023 /PRNewswire/ -- KT&G Corporation ("KT&G") (KRX:033780) conducted an investment support ceremony with the Indonesian Ministry of Investment and obtained an investment support letter with respect to the establishment of its new manufacturing plant in the East Java province, Indonesia, which will serve as an export hub.
On September 6, 2023, KT&G conducted an investment support ceremony with the Indonesian Ministry of Investment and obtained an investment support letter with respect to the establishment of its new manufacturing plant in the East Java province, Indonesia, which will serve as an export hub. KT&G CEO Mr. Bok-In Baek (right) and the Minister of Investment H.E. Bahlil Lahadalia (left) are posing for a photo at the meeting.
On September 6, 2023, KT&G CEO Mr. Bok-In Baek and the Minister of Investment H.E. Bahlil Lahadalia, along with other key officials, convened at the Indonesian Ministry of Investment headquarters in Jakarta, Indonesia. They discussed KT&G's investment plan to establish a new manufacturing plant in Indonesia and the regulatory support to be provided by the Indonesian Ministry of Investment.
Following the Indonesian Ministry of Investment's agreement to support the contemplated investment, KT&G will further refine the specific details of its investment plan and the Indonesian Ministry of Investment will provide its full support and assistance subject to the existing laws and regulations. Once the key points, such as the investment amount, method and targets are confirmed, KT&G plans to proceed with the necessary procedures, including obtaining the Board of Directors' resolutions.
The new manufacturing plant in Indonesia aims to commence operations in 2026, and the manufactured products are anticipated to be exported to overseas markets, including Southeast Asia. With this contemplated investment, KT&G strives to strategically position Indonesia as the production hub for its export products and intensify efforts to expand into the global market.
KT&G's investment plan regarding the new manufacturing plant in Indonesia is part of the company's five-year investment plan focusing on core business areas, which was unveiled at KT&G's Future Vision Declaration Ceremony held in January 2023 ("Ceremony"). At the Ceremony, KT&G outlined its long-term growth strategy to develop Next Generation Products (NGP), Health Functional Food (HFF), and overseas business sectors as its three core business areas.
KT&G also announced at the Ceremony that it aims to achieve KRW 10 trillion (or approximately USD 7.48 billion) in annual gross sales revenue by 2027 based on growth investments in core business areas. Additionally, KT&G shared its plans to vigorously expand into the global market, with the goal of increasing the proportion of its overseas sales revenue and the aggregate sales revenue of NGP and HFF to over 50% and 60% respectively, of its total gross sales revenue by 2027.
"On behalf of the Indonesian government, we welcome KT&G's continued investment in Indonesia. We are committed to doing our best to ensure seamless execution of KT&G's investment plan," said the Minister of Investment Bahlil Lahadalia.
KT&G CEO Bok-In Baek stated, "We aim to further accelerate our expansion into the global market including Southeast Asia by investing in the new manufacturing plant in Indonesia. We will continue to capture new business opportunities in the global market and take a leap forward as a "global top-tier" company through vigorous investment strategies and innovation."
On September 6, 2023, KT&G conducted an investment support ceremony with the Indonesian Ministry of Investment and obtained an investment support letter with respect to the establishment of its new manufacturing plant in the East Java province, Indonesia, which will serve as an export hub. The picture shows KT&G’s manufacturing plant in Surabaya, Indonesia.
