#Kazakhstan #Almaty #KT&G #Superslim ESSE

KT&G to Establish a Eurasian Manufacturing Center in Kazakhstan

KT&G, a major player in the tobacco and electronic cigarette industry, is making significant strides in its global expansion by launching a state-of-the-art manufacturing facility in Kazakhstan. This move is aimed at meeting the rising international demand for its products and solidifying its presence in the Eurasian market.

In October 2023, the company held a groundbreaking ceremony for the new factory located in Almaty, which will occupy approximately 200,000 square meters. This hybrid manufacturing base is expected to begin operations towards the end of 2025 and will serve as a regional hub for supplies to Europe, the Commonwealth of Independent States (CIS), and other Eurasian countries.

Prior to this establishment, KT&G laid the groundwork for its Eurasian operations by forming a subsidiary in Kazakhstan earlier in 2023. This strategic move is part of KT&G’s broader plan to bolster its overseas business and focus on local growth. Currently, the company employs over 150 local staff and expects the new facility to create additional jobs within the region, thus fostering a complete local value chain from production to marketing and sales.

The establishment of this factory aligns with KT&G’s strategic goal to transform itself into a top-tier global player in the tobacco industry. The company has set an ambitious target to increase its foreign sales to over 50% of its total revenue by 2027. This growth will be propelled by ongoing investments aimed at enhancing its competitive edge in international markets.

KT&G's global performance is already on an upward trajectory, as evidenced by its overseas cigarette sales, which reached 163.2 million units in the third quarter of 2024, marking a record high for the company over two consecutive quarters. One of KT&G's standout products, the Superslim ESSE brand, continues to gain traction in various international markets.

As the leading manufacturer of next-generation products, including electronic cigarettes and healthy food items in South Korea, KT&G boasts a workforce of 5,184 employees and offers 717 brands across 143 countries, including Kazakhstan, as of the end of 2023. The new manufacturing facility is poised to be a cornerstone in achieving KT&G's objective of increasing its foreign market share.

This strategic initiative underscores KT&G’s commitment to not only expanding its operations but also contributing to the local economy in Kazakhstan, ultimately reinforcing its ambition to be recognized as a global leader in the industry.

For more information on KT&G and its sustainable practices, visit KT&G's Official Website.