KT&G Enhances Global Manufacturing Capabilities with Türkiye Factory Expansion
On January 16, 2025, KT&G Corporation celebrated the expansion of its manufacturing facility in Türkiye, a significant step in its quest to enhance its global footprint. This expansion aligns with the company's ambition to achieve 'Global Top-tier' status, illustrating its commitment to expanding its operations beyond South Korea. The ceremony was attended by an array of notable figures, including KT&G's CEO Kyung-man Bang, the Korean ambassador to Türkiye Yeon-doo Jeong, and local governmental leaders from the Tire district where the factory is located. The expansion is expected to significantly ramp up KT&G's production capabilities, particularly with the installation of two state-of-the-art cigarette manufacturing lines, bringing the total to four, which have the combined capacity to produce 12 billion cigarette sticks annually.
The investment of over $60 million not only aims to meet increasing export demands from growing markets in North Africa and Latin America but also signifies KT&G's ongoing efforts to solidify its manufacturing base internationally. With this expansion, KT&G's total investment in the Türkiye factory will amount to $110 million. The operation is predicted to create approximately 60 new jobs, raising the total employment at the İzmir location to over 200 people.
KT&G initially established its Türkiye factory in 2008, marking it as the company’s first foray into international manufacturing. In addition to its operations in Türkiye, KT&G is actively developing further manufacturing facilities in Indonesia and Kazakhstan, showcasing its strategy to build a robust global manufacturing network. Construction of the Kazakhstan facility is expected to conclude within the year, elevating KT&G's operational capabilities on an international scale. CEO Kyung-man Bang emphasized that the Türkiye facility will serve as a pivotal center for KT&G's business initiatives, facilitating a comprehensive local value chain that spans manufacturing, operations, and distribution. The objective is clear: to boost profitability while maintaining adaptability to evolving global market trends.
During the Future Vision Declaration Ceremony held in January of the previous year, KTG unveiled its strategic vision to ascend to 'Global Top-tier' status, which revolves around three core business areas: Next Generation Products (NGP), international cigarette manufacturing, and health-oriented food products. A pivotal goal is to derive 50% of its revenue from international operations by 2027. Governor Vural Karagül expressed gratitude towards KT&G for its substantial investments, underlining the factory's role in bolstering the local economy and promoting sustainable industrial growth via environmentally conscious manufacturing processes.
With a presence across multiple nations including Uzbekistan, Taiwan, and now expanding further into Kazakhstan and Indonesia, KT&G is positioning itself as a formidable player in the global tobacco industry. Its well-recognized brands, including ESSE and BOHEM, will no doubt benefit from the enhanced manufacturing capabilities in Türkiye. This expansion exemplifies KT&G's readiness to leverage its manufacturing prowess in meeting the rising demands of international markets, marking a new chapter in its globalization efforts.
The investment of over $60 million not only aims to meet increasing export demands from growing markets in North Africa and Latin America but also signifies KT&G's ongoing efforts to solidify its manufacturing base internationally. With this expansion, KT&G's total investment in the Türkiye factory will amount to $110 million. The operation is predicted to create approximately 60 new jobs, raising the total employment at the İzmir location to over 200 people.
KT&G initially established its Türkiye factory in 2008, marking it as the company’s first foray into international manufacturing. In addition to its operations in Türkiye, KT&G is actively developing further manufacturing facilities in Indonesia and Kazakhstan, showcasing its strategy to build a robust global manufacturing network. Construction of the Kazakhstan facility is expected to conclude within the year, elevating KT&G's operational capabilities on an international scale. CEO Kyung-man Bang emphasized that the Türkiye facility will serve as a pivotal center for KT&G's business initiatives, facilitating a comprehensive local value chain that spans manufacturing, operations, and distribution. The objective is clear: to boost profitability while maintaining adaptability to evolving global market trends.
During the Future Vision Declaration Ceremony held in January of the previous year, KTG unveiled its strategic vision to ascend to 'Global Top-tier' status, which revolves around three core business areas: Next Generation Products (NGP), international cigarette manufacturing, and health-oriented food products. A pivotal goal is to derive 50% of its revenue from international operations by 2027. Governor Vural Karagül expressed gratitude towards KT&G for its substantial investments, underlining the factory's role in bolstering the local economy and promoting sustainable industrial growth via environmentally conscious manufacturing processes.
With a presence across multiple nations including Uzbekistan, Taiwan, and now expanding further into Kazakhstan and Indonesia, KT&G is positioning itself as a formidable player in the global tobacco industry. Its well-recognized brands, including ESSE and BOHEM, will no doubt benefit from the enhanced manufacturing capabilities in Türkiye. This expansion exemplifies KT&G's readiness to leverage its manufacturing prowess in meeting the rising demands of international markets, marking a new chapter in its globalization efforts.
Topics Consumer Products & Retail）
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