KT&G, on October 12, announced the commencement of construction for a groundbreaking new plant in Kazakhstan. This initiative aligns with the company's strategic vision of achieving global top-tier status and establishing a production innovation stronghold in the Eurasian region.
The groundbreaking ceremony took place in Almaty Province on October 11, with over 70 participants, including KT&G's CEO Baek Bok-in, Almaty Governor Marat Sultangaziyev, and the Korean Consul General in Almaty, Park Nae-cheon, in attendance.
Spanning an expansive area of around 200,000 square meters, the factory will function as a "hybrid production facility," catering to the production of next-generation products (NGPs), such as electronic cigarettes, and conventional cigarettes (CC) for consumers in Europe and the Commonwealth of Independent States (CIS) region.
KT&G has chosen Kazakhstan as the initial stepping stone for expanding its network across the region. In January of the previous year, the company established local sales and manufacturing subsidiaries in the country. This, coupled with the completion of the Almaty factory, will provide KT&G with a comprehensive local value chain to oversee the entire manufacturing and sales process across the target regions.
In January, the company unveiled its ambitious goal of attaining a "global top-tier" position, with a specific focus on NGPs, CC, and functional health foods as its core fields. It has set a target to increase overseas sales by more than 50 percent by 2027.
In a significant move, last September, the Indonesian Ministry of Investment entered into an agreement with KT&G to invest in the construction of a new manufacturing plant in East Java Province. This facility is poised to become the company's primary center for market expansion in Southeast Asia.
KT&G's CEO, Baek Bok-in, emphasized the strategic importance of the new Kazakh factory, stating, "The new Kazakh factory will be our global core manufacturing hub, offering extensive coverage across the Eurasian market and serving as our frontline in our journey to achieve global top-tier status."
KT&G, a leader in the NGP market in Korea, currently operates main factories in Daejeon's Sintanjin and Gwangju. The company has plans to further expand these manufacturing facilities to reinforce its market leadership in Korea and around the world.
