According to The Guru on December 17th, South Korea's tobacco company KT&G plans to enter the Eurasian market and is speeding up the construction of its new factory in Kazakhstan, aiming to complete it by 2025.
KT&G plans to increase its global sales to over half by 2027.
According to industry sources, construction of KT&G's new factory in Almaty, Kazakhstan is progressing rapidly, with completion expected to be on schedule by 2025, two years after groundbreaking. Since October of last year, KT&G has been establishing a production base in the region, occupying an area of approximately 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 the overseas sales of e-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 in order for more than half of its total sales to come from overseas, with the goal of achieving a global sales share of over 50% by 2027.
In 2023, KT&G's sales reached 5.8724 trillion Korean won, with a global business sales proportion of 33.4%.
Not only in Kazakhstan, KT&G is also accelerating the establishment of production bases in Indonesia. In September of last year, KT&G signed an agreement with the Indonesian Investment Ministry to provide investment support for the construction of the second and third factories in Indonesia. In April of this year, KT&G began construction of a new factory in Sidoarjo, East Java Province, Indonesia.
KT&G plans to gradually expand its e-cigarette production equipment in South Korea, focusing on the new plants in Daetan and Gwangju to ensure its e-cigarette brand "LIL" remains a leader in domestic and international markets.
KT&G stated that the construction of the production base in Kazakhstan is a significant investment towards becoming a top global company. The new factory in Kazakhstan will serve as a cornerstone in achieving the goal of 50% of global business sales.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
