KT&G Completes New Kazakhstan Factory, Establishing Eurasian Export Outpost

New Kazakhstan Plant Covers 52,000 Square Meters
Expected to Become a Key Production Base for Meeting Eurasian Market Demand

KT&G announced on the 23rd that it held a completion ceremony for its new factory in Kazakhstan, which will serve as a production base for the Eurasian market, on the 22nd.

The ceremony, held at the local factory in Almaty, Kazakhstan, was attended by more than 100 key officials, including KT&G President Bang Kyungman, Marat Sultanagisyev Iloshizovich, Governor of Almaty, and Taeik Cho, Ambassador of Korea to Kazakhstan.

KT&G held a completion ceremony for its new factory in Kazakhstan, which will serve as a production base for the Eurasian market, on the 22nd. The photo shows key officials including KT&G President Bang Kyungman (5th from the left), Marat Sultanagisyev Iloshizovich, Governor of Almaty (6th from the left), and Taeik Cho, Ambassador to Kazakhstan (7th from the left), posing for a commemorative photo.
[Photo by KT&G]

The new KT&G Kazakhstan factory is equipped with three production lines on a total floor area of 52,000 square meters, enabling an annual output of 4.5 billion units. It is expected to become a key production base and export outpost to meet the growing demand in the Eurasian market, including Europe and the Commonwealth of Independent States (CIS).

The construction of the new factory in Kazakhstan is part of KT&G's capital expenditure (CAPEX) investment plan, announced at the "Future Vision Declaration Ceremony" in January 2023. KT&G plans to increase the proportion of its global sales to over 50% by 2027 by strengthening its fundamental competitiveness, including expanding direct overseas operations.

With the completion of the new factory, KT&G has established a "global production system" spanning Korea, Indonesia, Russia, and Kazakhstan. The company is also making growth investments to expand its overseas business, such as building an additional new factory in Indonesia, scheduled for completion next year. KT&G plans to focus on enhancing profitability by establishing a locally integrated value chain that manages everything from production to sales and distribution directly at its overseas production bases.

Bang Kyungman, President of KT&G, stated, "With the completion of the new factory in Kazakhstan, KT&G has laid the foundation for a global production system that will lead the competitiveness of our global business. Going forward, we will continue to expand our direct overseas operations with a spirit of constant challenge, enhance profitability and corporate value, and share tangible results with our stakeholders."

Meanwhile, on the same day, KT&G signed a memorandum of understanding (MOU) to promote the "Green Globe Project," which supports local forest creation, following the completion ceremony. Through this project, the company plans to support the recovery from the large-scale wildfire that occurred in Abai Region, Kazakhstan, in June 2023.

This MOU was signed based on tripartite cooperation between KT&G, the Ministry of Ecology and Natural Resources of Kazakhstan, and the Asian Forest Cooperation Organization (AFoCO), the first international organization specializing in forestry in the Asia region. Under the agreement, the three organizations will jointly promote recovery of the affected area, develop measures to prevent recurrence, and monitor restoration effectiveness. This will mark the first case of a private company participating in wildfire recovery efforts in Abai Region.

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