KT&G Establishes Global Production Innovation Base... Breaks Ground on New Factory in KazakhstanKT&G

650 KT&G Establishes Global Production Innovation Base... Breaks Ground on New Factory in Kazakhstan 2023.10.12

KT&G (CEO Baek Bok-in) has held a groundbreaking ceremony for its new factory in Kazakhstan as part of its medium to long-term vision of a 'Global Top-tier' leap and establishing a production innovation hub in Eurasia.

The groundbreaking ceremony, held on the 11th at the new factory site in the Almaty region of Kazakhstan, was attended by over 70 key stakeholders, including KT&G's CEO Baek Bok-in, Almaty's Governor Marat Eleusizovich, and Park Nae-cheon, the Consul General of Almaty.

The new KT&G factory in Kazakhstan is being constructed as a 'Hybrid Production Base' for the sales of NGP (e-cigarettes) and global CC (cigarette) in the European and CIS regions of Eurasia, with the site spanning approximately 200,000㎡.

KT&G is positioning Kazakhstan as a pivotal point for its Eurasian business growth to enhance its global export competitiveness. Since last January, KT&G has been focused on laying its local business foundation by establishing a sales and manufacturing subsidiary in Kazakhstan, planning to directly manage everything from production to marketing and sales to strengthen its global business capabilities and improve profitability.

Additionally, establishing this new Kazakhstan factory is part of KT&G's growth investment, revealed during the 'Future Vision Announcement' last January. Along with its medium to long-term vision of a 'Global Top-tier Leap,' KT&G unveiled a growth strategy centered on three core businesses: NGP, global CC, and dry foods, aiming to increase the proportion of international sales to more than 50% by 2027 through strengthening its overseas business capabilities.

Previously, in September, KT&G had agreed with the Indonesian Investment Department to receive support for constructing a new factory in East Java, Indonesia, as a forefront export base. After announcing its new factory in Indonesia as its production hub in Southeast Asia, KT&G is focusing on the new Kazakhstan factory as the centerpiece of its Eurasian business growth to achieve its future vision.

Meanwhile, based on the proactive launch of innovative platforms and enhancing global partnerships, KT&G continuously invests domestically, especially in strengthening its market leadership in the rapidly growing domestic and overseas e-cigarette business. This includes the phased expansion of NGP production facilities centered on its Sintanjin and Gwangju factories by next year.

CEO Baek Bok-in of KT&G stated, "The new Kazakhstan factory will serve as a global core production hub covering the Eurasian market and will be a forefront base for realizing the group's future vision of Global Top-tier.” He further emphasized, "KT&G will continue to focus on securing global business competitiveness and, based on this, strive to leap forward as a premium company contributing to the national economy.”

(Photo Description) KT&G (CEO Baek Bok-in) held a groundbreaking ceremony for the new factory in Kazakhstan on the 11th, in a faithful execution of its 'Global Top-tier' future vision and establishing a production innovation hub in Eurasia. The photo shows KT&G's CEO Baek Bok-in (third from the right), Governor Marat Eleusizovich of Almaty (third from the left), and Consul General Park Nae-cheon of Almaty (second from the left) taking a commemorative photo at the groundbreaking ceremony.

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