KT&G constructs new factory in Kazakhstan

KT&G CEO Baek Bok-in, third from right, along with other officials pose for a photo during a groundbreaking ceremony for its new manufacturing plant in Kazakhstan on Wednesday. [KT&G]

KT&G, the country's largest tobacco manufacturer, is constructing a new factory in Kazakhstan capable of producing both heat-not-burn products and conventional cigarettes in order to meet the growing demands across the Eurasian region.

The manufacturing plant, situated in Almaty Province, Kazakhstan, covers an area of approximately 200,000 square meters (2.15 million square feet), the company said Thursday. It is expected to serve as the company's manufacturing hub in Eurasia.

KT&G established local sales and manufacturing subsidiaries in Kazakhstan in January. Going forward, KT&G plans to build the entire value chain in Kazakhstan from production to marketing and sales.

The construction project in Kazakhstan is in line with KT&G's long-term growth strategy focusing on developing its heat-not-burn, conventional cigarettes and health functional food businesses, and ultimately increase the proportion of overseas sales revenue to over 50 percent of its total sales revenue by 2027.

"We expect the new Kazakhstan factory to serve as a core global production hub encompassing the Eurasian market, becoming a front-line base for realizing our future vision of achieving global top-tier status," KT&G CEO Baek Bok-in said, celebrating the groundbreaking of the Kazakhstani manufacturing plant on Wednesday.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]