Indonesian Investment Minister Rosan Roeslani (left) and KCC Glass Chairman Chong Mong-ik light up the melting furnace at the company’s factory in Batang, Central Java, on October 3, 2024 (Courtesy of KCC Glass)
KCC Glass, a major South Korean construction materials manufacturer, will invest an additional 700 billion won ($524.8 million) in its Indonesian glass factory, turning the facility into a cluster to expand overseas operations into other markets such as Southeast Asia. It is planned to be developed as a. Asia, Oceania and the Middle East.
KCC announced the investment plan on Friday after a blow-in ceremony for the Korean glass producer’s first overseas factory in Batang, a town in Central Java.
Starting in 2021, a South Korean company will invest 300 billion won to build a facility capable of producing 440,000 tons of float glass annually. The plant will increase the company’s total annual production capacity to 1.74 million tons.
“The Batang factory will make Indonesia a major player in the global glass industry,” KCC Chairman Cheng Meng-yik said at a ceremony on Thursday.
Capital relocation boosts demand for building materials
The company plans to start commercial operation of the plant as early as the end of this month after heating up the melting furnace.
Indonesia is Southeast Asia’s top economy and has grown by more than 5% for the past two years in a row due to strong growth potential based on its young population.
Other Korean companies such as Hyundai Motors and LG Energy Solutions have already invested in Indonesia to take advantage of the country’s rapid economic growth.
According to KCC, the country is located between the Indian Ocean and the Pacific Ocean, offering excellent geographical conditions for business expansion.
With the government planning to move the capital from Jakarta to Nusantara in East Kalimantan province, KCC expected demand for construction materials to increase.
Please email Ji-Hye Min (spop@hankyung.com).
Jung Jeong-woo edited this article.
