Gudang Garam to buy new factory

Gudang Garam to buy new factory

JAKARTA: Publicly-listed cigarette maker PT Gudang Garam said
on Wednesday it planned to acquire a Rp 784 billion (US$75
million) factory owned by its affiliate PT Karyadibya Mahardika
as part of an expansion program.

Gudang Garam said in a statement that the factory would be
used to manufacture low tar and low nicotine clove blended
cigarettes.

Company president Djajusman Suryowijono said the move would
provide Gudang Garam with an edge to compete in the growing
market.

The factory, which is nearing completion, will have a total
capacity of 13 billion cigarettes annually. The company expects
to launch its light cigarettes sometime this year.

Light cigarettes accounts for about 10 percent of the total
clove blended cigarette output in Indonesia. -- JP