Can KT&G’s contract factory produce 300 million cartridges?

On July 10, a relevant executive at ITM, KT&G’s contract manufacturing plant in South Korea, said the company has prepared facilities capable of producing 300 million cartridges annually to ensure high output and a competitive cost structure.

According to South Korean media outlet Newsis, ITM CEO Na Hyuk-Hwi, the head of KT&G’s contract manufacturing partner, said the company is expected to deliver solid performance in the second half of the year, as both its protection circuit business and e-cigarette division are showing stable recovery and growth. ITM reportedly established its e-cigarette business division last year and has produced two products for KT&G: the “Lil Hybrid Easy” and the “Liquid Cartridge for Hybrid,” with plans to expand exports this year. An ITM representative said the company has prepared facilities capable of producing 300 million cartridges per year to ensure high-volume output and a competitive cost structure. According to previous reports, ITM began mass production in February last year of the cartridges used in KT&G’s hybrid e-cigarette model, and then began supplying new e-cigarette products in April of the same year. Sales from this division have continued to grow. To respond to the continued expansion of the global e-cigarette market, the company has completed equipment expansion at its domestic and Vietnam plants and plans to make additional equipment investments.