KT&G Accelerates Groundbreaking of New Factories in Indonesia and Kazakhstan... "Aiming for Global Top Tier"

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KT&G is accelerating the construction of new overseas factories in Indonesia and Kazakhstan to leap forward as a 'Global Top Tier' company, its group’s mid- to long-term vision.

At the groundbreaking ceremony held on the 11th at the site of KT&G's new factory in Almaty Province, Kazakhstan, key officials including President Baek Bok-in (fourth from the left) are seen shoveling the first soil.
[Photo by KT&G]

According to industry sources on the 19th, KT&G recently held a groundbreaking ceremony at the new factory site in Almaty Region, Kazakhstan, attended by more than 70 key stakeholders including President Baek Bok-in, Marat Iloshizovich, Governor of Almaty Region, and Park Nae-cheon, Consul General in Almaty.

Kazakhstan had a gross domestic product (GDP) of $220.6 billion as of 2021, the highest among the five Central Asian countries. It has a geographical advantage connecting Asia and Europe, which has recently attracted domestic distribution companies rushing to enter the market.

KT&G’s new factory in Kazakhstan will be built on approximately 200,000 square meters. It will be a 'hybrid' factory producing both heated tobacco products and electronic cigarette sticks, with completion targeted for 2025. The products manufactured here will be distributed to the Commonwealth of Independent States (CIS) countries such as Uzbekistan and Mongolia, as well as Europe.

Governor Marat Iloshizovich said, "The groundbreaking project of KT&G, the world’s fifth-largest global tobacco company, is an important business for us," adding, "We will provide all support and cooperation, including visas."

Last month, KT&G also held a signing ceremony for an investment support agreement with the Indonesian Ministry of Investment for the construction of a new factory in East Java, Indonesia. Indonesia, with a population of 270 million, is the world’s second-largest tobacco consumer with a huge domestic market. The new factory to be established here aims to start operations in 2026. The products produced will be exported to Southeast Asia and other regions.

Earlier, in January, KT&G announced at its 'Future Vision Declaration Ceremony' that it would focus on three core businesses: electronic cigarettes, health functional foods, and overseas heated tobacco products. Based on this, the company aims to achieve sales of over 10 trillion won by 2027 and increase the global sales ratio to over 50% through business advancement.

A KT&G official stated, "The new factories being built in Kazakhstan and Indonesia will serve as a stepping stone to becoming a global top-tier company," adding, "We plan to use these two countries as footholds in the Eurasian and ASEAN markets respectively and focus on expanding overseas markets."

This content was produced with the assistance of AI translation services.