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KT&G Establishes Eurasian Export Outpost with Completion of Kazakhstan Factory

News Provided by PR Newswire2025-04-23

KT&G Establishes Eurasian Export Outpost with Completion of Kazakhstan Factory

[22-April-2025]

- New Kazakhstan factory with total gross floor area of 52,000㎡ expected to meet Eurasian demand as core manufacturing base
- MOU signed after completion ceremony to assist Abai wildfire recovery and reforestation

SEOUL, South Korea, April 23, 2025 /PRNewswire/ -- KT&G (KRX: 033780), on the 22nd, hosted the completion ceremony of its new Kazakhstan factory which will be the production hub for the Eurasian market.

The ceremony took place at the factory grounds in Almaty, Kazakhstan. Approximately 100 notable participants including KT&G CEO Kyung-man Bang, Almaty Governor Sultangaziev Marat Eleusizovich, and Korean Ambassador to Kazakhstan Taeik Cho were present at the event.

KT&G's Kazakhstan factory with three manufacturing facilities has a total gross floor area of 52,000㎡ and an annual production capacity of 4.5 billion cigarette sticks. The factory will be an export outpost and core production base that meets the demands from recently growing Europe, CIS, and the Eurasian markets.

The new KT&G Kazakhstan Factory operates based on cutting-edge automated facilities, and strict quality standards conforming to international quality standards are applied to the production process. A precise management process is applied to every step of production, from material procurement to product packaging, to refine quality. With the completion of the factory, KT&G expects a stronger global competitiveness in the local Kazakhstan market as well as in the Eurasian market.

The construction of the new factory in Kazakhstan is part of KT&G's CAPEX investment program announced at the "Future Vision Declaration Ceremony" held in January of 2023. KT&G plans to increase the proportion of global revenue to 50% by 2027 through expansion of direct global operations and other measures heightening core business competitiveness

With the completion of the new Kazakhstan factory, KT&G successfully set up a "Global Manufacturing Network" across factories in Korea, Indonesia, Russia, Kazakhstan, and other locations. Based on the global production bases, KT&G plans to increase profitability by establishing fully local value chains that directly manages everything from production to operations and distribution.

KT&G CEO Kyung-man Bang said that "with the completion of the new Kazakhstan factory, KT&G has laid the foundation of a Global Manufacturing Network that will tow our global competitiveness" further stating that "KT&G will accept challenges in the future and expand our global direct business to increase profitability as well as corporate value, and share the gains with our stakeholders."

After the ceremony, KT&G signed a Memorandum of Understanding (MOU) on the "Green Globe Project" that aims to assist in local reforestation efforts. Through the project, the company plans to assist recovery from the June 2023 Abai wildfire.

The MOU was formed based on the trilateral cooperation between KT&G; the Kazakhstan Ministry of Ecology, Geology and Natural Resources; and the Asian Forest Cooperation Organization (AFoCO), the first international organization dedicated to forestry agendas in Asia. Based on the MOU, the three parties will jointly conduct recovery assistance and prevention, restoration effectiveness monitoring, and other activities. The cooperation will mark the first case of a private enterprise participating in the Abai wildfire recovery project.

Young-ah Shim, Director of KT&G's ESG Management Office, stated "through the 'Green Globe Project,' we will provide quick Kazakhstan wildfire recovery assistance and respond proactively to the global climate crisis," also commenting that "in order to fulfill its 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."

KT&G, the manufacturer of the global brand ESSE, is a Korean corporation with a number one position in the Korean electronic cigarette NGP (Next Generation Products), health functional foods, and combustible cigarette markets. As of 2024, KT&G offers 870 brands across 148 countries.