Amcor to construct tobacco packaging plant in Indonesia

19 August 2014 (Last Updated August 19th, 2014 04:18)

Amcor Tobacco Packaging is planning to construct a greenfield tobacco packaging plant in East Java, Indonesia, which is expected to become fully operational by the end of 2015.

Amcor Tobacco Packaging is planning to construct a greenfield tobacco packaging plant in East Java, Indonesia, which is expected to become fully operational by the end of 2015.

The proposed packaging facility is in line with the company's long-term strategy to expand its footprint in emerging markets and contribute to the Indonesian economy.

"The proposed packaging facility is in line with the company's long-term strategy to expand its footprint in emerging markets and contribute to the Indonesian economy."

The facility will cater to export markets, offering in-line flatbed, rotary gravure and off-line capabilities to a network of customers across Asia.

Amcor Tobacco Packaging president Peter Konieczny said: "Amcor will be the first international tobacco packaging player to establish a manufacturing presence in Indonesia, bringing new jobs, technology and innovation to the country."

The company has so far grown its market share in Indonesia by supplying packaging from its existing sites in Asia, including Korea, Malaysia, the Philippines and Singapore, over the past three years.

Amcor's presence in Indonesia will serve the tobacco market's increasingly complex packaging needs, as Asian tobacco manufacturers move toward outsourced supplier models in order to focus on their core tobacco business.