PT Philip Morris Indonesia (“PMID”) and its affiliate PT HM Sampoerna Tbk. (“Sampoerna”) are expanding production capacity for export and the domestic market at two manufacturing facilities in Karawang, West Java, with investments of approximately USD 174 million (approximately IDR 2,0 trillion*) for the manufacturing of kretek and of white cigarettes.
Karawang, October 9, 2013 - PMID recently expanded its production capacity for manufacturing Marlboro for the domestic market and for export, primarily to Asia Pacific destinations, following investment of almost USD 96 million. A new facility for white cigarettes production, adjacent to Sampoerna’s kretek facility in Karawang, is also equipped to process tobacco leaf. Previously, PMID had used imported processed tobacco for its manufacturing needs.
Sampoerna’s expansion is focused on manufacturing machine-made kretek at its facility in Karawang which was inaugurated in 2008. Since 2011, production capacity has increased with investment of almost USD 78 million.
“We have invested more than USD 390 million in Karawang since 2006. We are proud to support the Indonesian government’s objective to increase employment and boost export performance. PMID and Sampoerna are committed to long term investment in the country,” said Sampoerna’s President Director Paul Janelle.
The value of tobacco product exports from PMID and Sampoerna amounted to USD 24 million in 2012 and is expected to at least double in 2013 following the installation of new capacity.
“We believe that there is a great potential for kretek exports. For Marlboro, Indonesia will be an export hub for Asia Pacific in the years to come,” added Mr. Janelle.
The white cigarette manufacturing facility in Karawang will employ an approximate number of 600 employees when it is fully operational in 2014.
*USD1.0 = IDR 11,510 (spot rate of October 8, 2013)
For further inquiries:
Mochamad Tommy Hersyaputera
Manager Corporate Communications
Mob. +62 811 991 9923
About PT Philip Morris Indonesia
PMID has been present in Indonesia since 1984, producing Marlboro, the world’s number one selling cigarette brand, for the domestic Indonesian market. In 2012, PMID has begun to export Marlboro and other white cigarette brands. Distribution of Marlboro in Indonesia is conducted by Sampoerna. PMID, an affiliate of Philip Morris International Inc., is the majority shareholder in Sampoerna, one of the leading tobacco companies in Indonesia. The USD 5.2 billion acquisition of Sampoerna in 2005 is one of the largest single direct foreign investment transactions in Indonesian history.
About PT HM Sampoerna Tbk
PT HM Sampoerna Tbk. ("Sampoerna") was founded in 1913 with the principal activity of manufacturing and selling cigarettes. Dji Sam Soe and Sampoerna A are major Sampoerna brands in the premium segment, while the Sampoerna Kretek brand competes in the medium price segment. Sampoerna operates eight cigarettes factories in East Java (three factories in Surabaya, and one each in Pandaan, Malang, Probolinggo, Lumajang) and one in West Java (Karawang). Sampoerna is an affiliated company of Philip Morris International Inc. (PMI). For more information, see: www.sampoerna.com
PMI is the world’s leading international tobacco company, with six ot the world’s top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the developement and commercialization of Reduced-Risk Products (RRPs). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabalities in product development, state-of-the-art facilities, and indusrty-leading scientific substantiation, PMI aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences and rigorous regulatory requirements.