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KT&G completes tobacco plant in Kazakhstan to supply Europe, CIS region
KT&G CEO Bang Kyung-man, fifth from left, Almaty Gov. Sultangaziev Marat Eleusizovich, sixth from left, and Korean Ambassador to Kazakhstan Cho Tae-ik, seventh from left, attend a ceremony marking the completion of KT&G’s new manufacturing plant in Almaty Province, Kazakhstan, Tuesday (local time). Courtesy of KT&G.
By Ko Dong-hwan
KT&G completed construction on its first manufacturing plant in Kazakhstan, bolstering its supply chain to better serve cigarette consumers across Central Asia and Europe, Korea’s largest tobacco maker said Wednesday.
Located in Almaty Province, the new facility has a total floor area of 52,000 square meters and is equipped with three production lines capable of producing up to 4.5 billion cigarettes annually.
KT&G described the plant as its “export outpost and core production base” tailored to meet growing demand from Europe, the Commonwealth of Independent States and the broader Eurasian markets.
KT&G CEO Bang Kyung-man attended a completion ceremony at the site on Tuesday (local time), joined by Almaty Governor Sultangaziev Marat Eleusizovich, Korean Ambassador to Kazakhstan Cho Tae-ik and around 100 other guests.
“KT&G, with completion of the new Kazakhstan factory, has laid the foundation of its global manufacturing network that will tow our global competitiveness,” Bang said during the ceremony.
“KT&G will accept future challenges and expand our global direct business to increase profitability as well as corporate value, and share the gains with our stakeholders.”
The company said the new plant is part of the capital expenditure plan it first revealed in January 2023 as part of its “future vision proclamation.” The plan stated the company will raise its sales from overseas markets to over 50 percent of its entire sales by 2027.
In addition to Kazakhstan, KT&G currently operates manufacturing facilities in Korea, Indonesia and Russia. A second plant in Indonesia is also under construction, with completion scheduled for next year. The company stated that its global manufacturing bases are designed to complete local value chains — encompassing manufacturing, marketing and distribution — to effectively serve its international markets.
Following the ceremony, the company also signed a memorandum of understanding (MOU) with the Kazakhstan Ministry of Ecology, Geology and Natural Resources and the Asian Forest Cooperation Organization to partake in forestation work in the country’s Abai Province. The region sustained a large-scale mountain fire in June 2023 .
Under the MOU, the three parties agreed to cooperate on restoring the regional forests and introducing measures to prevent further wildfires.
Shim Young-ah, director of KT&G’s ESG Management Office, said, “Through the 'green globe project,' we will provide quick Kazakhstan with wildfire recovery assistance and respond proactively to the global climate crisis.”
“To fulfill our social responsibility as a global corporate citizen, KT&G will closely cooperate with nations it operates in to seek a path that is mutually beneficial,” she added.