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KT&G finishes construction of tobacco plant in Kazakhstan

Published: 23 Apr. 2025, 11:10 Updated: 23 Apr. 2025, 20:04

KIM JU-YEON
[email protected]

KT&G CEO Bang Kyung-man, fifth from left, Almaty Gov. Marat Sultangaziev, sixth from left, and Korean Ambassador to Kazakhstan Cho Tae-ick, seventh from left, pose for a photo following an opening ceremony on April 22 for the tobacco firm's new factory in Kazakhstan that is set to become the company's production hub for the Eurasian market. [KT&G]

KT&G completed construction of its tobacco plant in Kazakhstan that is set to be a major production and export base for the firm’s growing Eurasian markets, the company said Wednesday.

The firm’s new factory in Almaty, Kazakhstan, can produce 4.5 billion tobacco products, including cigarettes, yearly through its three production lines set up across 52,000 square meters (559,723 square feet), according to KT&G.

It was part of the company’s investments announced in January 2023 with the aim of raising its overseas sales to account for 50 percent of total revenue by 2027. KT&G will also finish construction of a plant in Indonesia next year.

KT&G will directly manage production, sales and retail for its tobacco products manufactured at its overseas plants to optimize profitability across the value chain, according to the company.

Over 100 executives and local authorities, including KT&G CEO Bang Kyung-man, were present at the plant’s opening ceremony on Tuesday.

“With the completion of our new plant in Kazakhstan, KT&G has laid the foundation for a global production system that will drive our competitiveness in international markets,” Bang said.

“Going forward, we will continue to embrace challenges as we expand our direct overseas operations, enhancing both profitability and corporate value, and share the tangible results with our stakeholders.”

Following the ceremony, KT&G signed a memorandum of understanding with Kazakhstan’s Ministry of Ecology and Natural Resources and the Asian Forest Cooperation Organization to work together to recover from the aftermath of a wildfire that broke out in Abay, Almaty, in June 2023. The project is dubbed the "Green Globe Project."

The three-way agreement will also see the agencies prepare fire prevention measures and monitor restoration efforts. This marks the first time a private firm has participated in damage control for the Abay fire.

“Through this Green Globe Project, we aim to expedite recovery from the wildfires in Kazakhstan and take decisive action against the global climate crisis,” said Shim Young-ah, head of KT&G’s environmental, social and governance management division.

BY KIM JU-YEON [[email protected]]