Korea Tobacco Accelerates Construction Of New Factory in Kazakhstan, Plans To Complete It By 2025

Korea Tobacco accelerates construction of new factory in Kazakhstan, plans to complete it by 2025

Korea Tobacco (KT&G) plans to enter the Eurasian market by accelerating the construction of a new factory in Kazakhstan, and aims to increase the proportion of global sales to more than half by 2027. The new factory is expected to be completed in 2025.

According to The Guru on December 17, Korea Tobacco (hereinafter referred to as "KT&G") plans to enter the Eurasian market and is accelerating the construction of its new factory in Kazakhstan, aiming to complete it as scheduled in 2025.

KT&G plans to increase its global sales to more than half by 2027.

According to industry insiders, the construction of KT&G's new factory in Almaty, Kazakhstan is accelerating and is expected to be completed as scheduled in 2025, two years after the start of construction. As early as October last year, with the laying of the foundation of the new factory, KT&G began to establish a production base in the local area, covering an area of ​​​​about 200,000 square meters.

According to KT&G, after the completion of the new factory in Kazakhstan, it will serve as a "hybrid production base" for overseas sales of electronic cigarettes (NGP) and global cigarettes (CC) in Europe, the Commonwealth of Independent States (CIS) and other Eurasian regions. KT&G plans to expand its overseas business so that more than half of its overall sales come from overseas, and its goal of more than 50% of global sales will be achieved in 2027.

In 2023, KT&G's sales will be 5.8724 trillion won (US$4.1 billion), and the proportion of global business sales will be 33.4%.

Not only in Kazakhstan, KT&G is also accelerating the establishment of a production base in Indonesia. In September last year, KT&G signed an agreement with the Indonesian Ministry of Investment to provide investment support for the construction of the second and third factories in Indonesia. In April this year, KT&G began construction of a new factory in Surabaya, East Java, Indonesia.

KT&G also plans to gradually expand its e-cigarette production equipment in South Korea, focusing on the factories in Sintanjin, Daejeon and Gwangju, to ensure the leadership of its e-cigarette brand "LIL" in domestic and foreign markets.

KT&G pointed out that "the construction of the Kazakhstan production base is an important growth investment towards becoming a top global company, and the new factory in Kazakhstan will become the cornerstone of achieving the goal of 50% of global business sales."