KT&G completes Kazakhstan plant to accelerate growth in Eurasia

South Korea's top tobacco company KT&G announced Wednesday that it has completed construction of its new factory in Kazakhstan, a key production hub for the company’s expansion into the Eurasian market.

At a completion ceremony held Tuesday at the factory site in Almaty, Kazakhstan -- attended by KT&G CEO Bang Kyung-man, Almaty Gov. Sultangaziev Marat Eleusizovich, and Korean Ambassador to Kazakhstan Cho Tae-ick -- KT&G highlighted the new facility’s role as both a core production base and an export outpost, designed to meet growing demand across the Eurasian markets and broader European region.

The Kazakhstan factory, spanning a total floor area of 52,000 square meters, houses three manufacturing lines and boasts an annual production capacity of 4.5 billion sticks.

“The completion of the new plant marks a key step in building our global manufacturing infrastructure, which will drive our international competitiveness," said CEO Bang Kyung-man. “With a spirit of challenge, KT&G will continue to expand its global direct business to enhance both profitability and corporate value, while sharing the gains with our stakeholders.”

The Kazakhstan plant is part of KT&G’s capital expenditure strategy, aligned with its goal of boosting global revenue growth.

The company aims to raise the share of international sales to 50 percent by 2027 by strengthening its core business competitiveness and expanding direct operations abroad.

In addition to the new facility, KT&G operates a global manufacturing network across plants in Korea, Indonesia, Russia and Turkey. Through this network, the company aims to establish fully localized value chains, managing everything from production and operations to distribution.

Also on Tuesday, KT&G signed a memorandum of understanding for the green globe project with the Kazakhstan Ministry of Ecology, Geology and Natural Resources and the Asian Forest Cooperation Organization, reinforcing its commitment to local environmental sustainability.

Through the initiative, KT&G will support reforestation and wildfire recovery efforts in the Abai region, which was affected by wildfires in June 2023. The project includes restoration support as well as the development of preventive measures.