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.
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