KT&G begins construction of Kazakhstan factory
As part of its expansion strategy, KTG Corp has broken ground on its fourth overseas factory in Kazakhstan. The South Korean tobacco company aims to complete construction in 2025 and export products to the Eurasian region. Previously, KTG announced last m
As part of its expansion strategy, KT&G Corp has begun construction of its fourth overseas factory in Kazakhstan.
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The South Korean tobacco company's goal is to complete construction by 2025 and export products to the Eurasian region. Previously, KT&G announced last month that it would build a second factory in Indonesia, aiming to start operations in 2026 and export products to neighboring countries.<\/span><\/div>
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KT&G CEO Baek Bok-in stated in a press release: “The new Kazakhstan factory will serve as a global core production center covering the Eurasian market and will become a frontline base for achieving the group's future global top vision.”<\/span><\/div>
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The company aims for half of its sales to come from overseas by 2027. It hopes to achieve sales of 1 trillion won (7.4 billion USD) by 2027, compared to 5.9 trillion won in 2022.<\/span><\/div>
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KT&G stated that while focusing on traditional cigarette business, it will strengthen its heated tobacco (HNB) and health functional food businesses.<\/span><\/div>
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Since 2020, KT&G has exported its HNB products to over 30 countries through a distribution agreement with Philip Morris International.<\/span><\/div>
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78% of the company's cigarette division sales come from traditional cigarette business, while 22% come from heated tobacco business.<\/span><\/div>
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KT&G operates six tobacco factories—three in South Korea, and one each in Russia, Turkey, and Indonesia.<\/span><\/div>
