Morris to boost production

MALANG, East Java (JP): The local subsidiary of the United States-based cigarette company Phillip Morris will increase production by 20 percent to 60 million cigarettes a day this year from 50 million a day last year, a company's senior executive said.

Joe Kirk, the general manager of PT Phillip Morris Indonesia, said on Thursday that the company would receive new machines from the United Kingdom and Germany to boost production capacity.

"We're optimistic that we'll gain a greater market share this year," he said.

Kirk said that the company, which produces Marlboro and Longbeach cigarettes, hopes to raise its market share to 3.4 percent from 2.2 percent last year.

He said that the target was realistic as the demand for cigarettes is continuing to grow in Indonesia and other ASEAN countries.

Last year, 60 percent of the company's total production were sold domestically, while the remaining 40 percent was exported, mainly to ASEAN countries.

PT Phillip Morris operates a cigarette factory in Malang, East Java, which it took over from PT Tresno in 1998. (05/nur)