KT&G Breaks Ground on New Factory in Kazakhstan... "Establishing a Global Production Innovation Hub"

Indonesia to Fully Launch Eurasia Growth Investment

KT&G announced on the 12th that it held a groundbreaking ceremony for a new factory in Almaty Province, Kazakhstan, to leap toward its mid- to long-term vision of becoming a ‘Global Top Tier’ and to establish a production innovation hub in Eurasia.

Baek Bok-in, President of KT&G (third from the right), Marat Ilosizovich, Governor of Almaty (third from the left), and Park Nae-cheon, Consul General in Almaty (second from the left), are posing for a commemorative photo at the groundbreaking ceremony of the new factory.
[Photo by KT&G]

The KT&G Kazakhstan new factory will be established as a ‘hybrid production base’ for overseas sales of NGP (Next Generation Products, e-cigarettes) and global CC (cigarette) in the Eurasian region including Europe and the CIS, with a site area of approximately 200,000㎡.

KT&G is positioning Kazakhstan as a foothold for business growth in Eurasia to strengthen its global export competitiveness. Since establishing sales and manufacturing corporations in Kazakhstan last January, KT&G has focused on building a local business foundation and plans to enhance its global business capabilities and profitability by directly managing the complete local value chain from production to marketing and sales.

The establishment of the new factory in Kazakhstan is part of KT&G’s growth investment announced at the ‘Future Vision Declaration Ceremony’ held last January. KT&G revealed a growth strategy focusing on three core businesses?NGP, global CC, and health functional foods?along with its mid- to long-term vision of ‘leaping to Global Top Tier,’ aiming to increase the global sales ratio to over 50% by 2027 through strengthening overseas direct business capabilities.

Earlier, in September, KT&G signed an agreement with the Indonesian Investment Coordinating Board to receive investment support for constructing a new factory in East Java Province, Indonesia, serving as an export forward base. Following the establishment of the new factory in Indonesia as a Southeast Asian production hub, KT&G plans to make the Kazakhstan new factory the central point for Eurasian business growth and focus on achieving its future vision.

Meanwhile, KT&G is continuing domestic investments, including the phased expansion of NGP production facilities centered on the Sintanjin and Gwangju factories by next year, to further strengthen market leadership in the rapidly growing domestic and international e-cigarette business based on proactive innovation platform launches and the advancement of global partnerships.

Baek Bok-in, CEO of KT&G, stated, “The Kazakhstan new factory will serve as a global core production hub encompassing the Eurasian market and will be a forward base for realizing the group’s future vision of becoming a Global Top Tier.” He added, “KT&G will continue to focus on securing global business competitiveness in the future.”