Korean cigarettes (KT&G) Plans to accelerate the construction of a new plant in Kazakhstan, enter the Eurasian market, and increase the proportion of global sales to more than half by 2027. The new plant is expected to be completed by 2025.
Korea Tobacco accelerates construction of new plant in Kazakhstan
According to The Guru on Dec 17. Korea Cigarette (hereinafter referred to as “KT&G”) plans to enter the Eurasian market, aiming to complete the project on schedule in 2025 and accelerate the construction of its new plant in Kazakhstan.
KT&G; By 2027, it plans to increase the proportion of its global sales to more than half.
Plant construction Scheduled for completion in 2025
According to industry sources, the construction of KT&G’s new plant in Kazakhstan’s Almaty Oblast is accelerating and is expected to be completed on schedule two years after the start of construction in 2025. As early as October last year, with the establishment of the new plant, KT&G started to establish a local production site, covering an area of about 200,000 square meters.
According to KT&G, upon completion of the new plant in Kazakhstan, it will become a “mixed production base” for vapes (NGP) and global tobacco (CC) for the rest of Europe and the Commonwealth of Independent States (CIS) Eurasia for overseas sales. By expanding its overseas operations, KT&G plans to generate more than half of its overall sales overseas and achieve its goal of exceeding 50% of global sales by 2027.
In 2023, KT&G will generate 5.8724 trillion won in sales, accounting for 33.4 percent of global sales.
Not only in Kazakhstan, KT&G has also accelerated the establishment of production sites in Indonesia. In September last year, KT&G signed an agreement with the Indonesian Ministry of Investment to support the construction of the second and third plants in Indonesia. In April, KT&G began construction of a new plant in Surabaya, East Java province, Indonesia.
KT&G also plans to gradually expand its vape production facilities in South Korea, focusing on its Sintanjin and Gwangju plants to secure its vape brand. LIL’s leading position in domestic and international markets.
KT&G noted that “the construction of the production site in Kazakhstan is an important growth investment for the world’s top companies, and the new plant in Kazakhstan will be a cornerstone for achieving the sales target of 50% of the global business.”
