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.”