KT&G adds two new heated tobacco production lines at its South Korean factory

According to news on July 10, KT&G has added two new heated tobacco production facilities at its Shintanjin plant (KT&G’s factory in South Korea), bringing the total to seven. Reports say KT&G plans to gradually expand its heated tobacco facilities, with the number expected to increase to 10 next year. After the expansion is completed, the Shintanjin plant is expected to reach an annual production capacity of 10 billion heated tobacco tobacco sticks next year. As production capacity expands, KT&G also built an automated warehouse last year with annual storage capacity for 400,000 cases.

In addition to adding equipment at the Shintanjin plant, KT&G also plans to gradually expand vaping device facilities at other domestic manufacturing plants. In addition, to prepare for future export growth, KT&G is planning to build a new factory in Kazakhstan by the end of next year. At present, KT&G exports heated tobacco products and dedicated tobacco sticks to more than 30 countries, with an average annual growth rate of 24% in tobacco stick exports. Previously, at its “Future Vision Declaration Ceremony” in January, KT&G stated that it would invest about KRW 4 trillion over the next five years, focusing on three core businesses—heated tobacco, global conventional tobacco, and health functional foods—to achieve KRW 10 trillion in sales. In the next-generation tobacco segment in particular, KT&G plans to invest KRW 1.2 trillion and achieve KRW 2 trillion in sales by 2027. A KT&G representative said, “Even in the face of factors such as a global economic slowdown, we will maintain our medium- to long-term vision and continue investing proactively.”