Philip Morris Indonesia Announces $80m Investment to Boost Cigarette Exports

Source from:  Jakarta Globe (id)  10/11/2012

The Indonesian subsidiary of US cigarette making giant Philip Morris announced on Wednesday a plan to invest $80 million to boost its export capacity.

Philip Morris Indonesia (PMID) said in a press statement that the funds would be used to build a new factory in West Java in 2013 that will produce non-clove cigarettes, particularly of the Marlboro variety.

President director Djaja Kusuma said the additional investment was expected to increase the company's production capacity and support its exports to other countries in the Asia-Pacific region.

"Entering the 30th anniversary of our presence in Indonesia, we proudly announce the additional investment," Djaja said in the statement. "PMID is proud to be a part of Indonesia's dynamic economy, as well as to support the government's long-term goals of boosting exports and reducing trade deficits."

Philip Morris Indonesia employs some 200 local employees at its existing factory in Bekasi, West Java, which produces Marlboro cigarettes. The company plans to hire 100 additional employees to run the new factory, reportedly to be build in the neighboring district of Karawang.

Marlboro currently holds a 4.5 percent market share in Indonesia.

Aside from its Marlboro-brand products, Philip Morris is the majority shareholder of local cigarette company HM Sampoerna, which produces well-known local brands such as A Mild and Dji Sam Soe.

"Our company commenced operations in Indonesia in 1984, and we're committed to continuing our operations here over a long period," Djaja said, as quoted by the Indonesian news portal kontan.co.id. Enditem