KT&G (President Bang Kyung-man) held a construction ceremony on
Apr. 22 for its new factory in Kazakhstan, which is expected to serve as a
strategic production hub for Eurasian markets.
The
ceremony took place at the local site in Almaty Region, Kazakhstan, attended by
KT&G President Bang Kyung-man, Almaty Governor Sultangaziev Marat
Eleusizovich, Korean Ambassador to Kazakhstan Cho Tae-ik, and around 100 key
stakeholders.
With a total floor area of 52,000 square meters, the factory is equipped
with three production lines capable of manufacturing up to 4.5 billion units
annually. The facility is poised to become a core production base and export
outpost, enabling KT&G to respond to rising demand in the Eurasian region,
including Europe and the Commonwealth of Independent States (CIS).
The Kazakhstan factory is a key initiative under KT&G’s capital
expenditure (CAPEX) strategy, first announced at its Future Vision Declaration
in January 2023. As part of efforts to enhance fundamental competitiveness
through the expansion of direct overseas operations, KT&G aims to increase
its global sales share to over 50% by 2027.
With the completion of this facility, KT&G has established a global
production network encompassing South Korea, Indonesia, Russia, and now
Kazakhstan. The company is also constructing an additional facility in
Indonesia, targeted for completion next year, as part of ongoing investment in
overseas growth. Centering around overseas manufacturing bases, KT&G plans
to strengthen profitability by building a localized, end-to-end value chain
that is directly controlled by the company, from production to sales and
distribution.
KT&G
President Bang Kyung-man stated, “With the completion of the new Kazakhstan
plant, our company has laid the groundwork for a global production system that
will drive the competitive edge of our international business. We will
constantly challenge ourselves to pursue overseas expansion, enhancing
profitability and corporate value while sharing tangible results with our
stakeholders.”
Following the ceremony, KT&G signed a memorandum of understanding
(MOU) to promote the “Green Globe Project,” a reforestation initiative aimed at
supporting the recovery of areas affected by massive wildfires in Kazakhstan’s
Abai Region in June 2023.
The MOU was signed through trilateral cooperation between KT&G,
Kazakhstan’s Ministry of Ecology and Natural Resources, and the Asian Forest
Cooperation Organization (AFoCO), Asia’s first international organization
specializing in forestry. Under the agreement, the three parties will work
together to restore the affected areas, develop prevention measures, and
monitor the impact of the recovery, marking the first time a private enterprise
has participated in post-wildfire recovery efforts in Abai Region.
KT&G
Director for ESG Management Shim Yeong-ah stated, “With the Green Globe Project, we aim to support Kazakhstan’s rapid
recovery from wildfire damage and actively respond to the global climate
crisis. As a responsible global corporate citizen, KT&G will
continue to strengthen cooperation with partner countries and pursue
sustainable, mutually beneficial development.”