KT&G announced that it held the opening ceremony for its new factory in Kazakhstan on the 22nd.
The opening ceremony, held at the local factory in Almaty Province, Kazakhstan, was attended by over 100 officials, including KT&G President Bang Gyeong-man, Almaty Governor Sultangaliyev Marat Iloshichovich, and South Korean Ambassador to Kazakhstan Cho Tae-ik.
The KT&G Kazakhstan new factory is built on a site of 52,000 square meters and is equipped with three production facilities capable of producing 4.5 billion cigarettes annually. It serves as a key production base and export outpost to meet demand in the Eurasian market, including Europe and the Commonwealth of Independent States.
The construction of the Kazakhstan new factory is part of KT&G’s capital expenditure (CAPEX) investment announced during its 'Future Vision declaration ceremony' in January 2023. KT&G plans to increase its global revenue share to over 50% by 2027 through the enhancement of its fundamental competitiveness, including expansion of overseas direct business.
KT&G is currently investing in expanding its overseas business, aiming for the completion of a factory in Indonesia next year, among other new factories. The goal is to establish a localized, integrated value chain that is directly managed from production to sales and distribution, centered around overseas production bases.
President Bang noted, “With the completion of the Kazakhstan new factory, KT&G has laid the foundation for a production system that will lead the competitiveness of its global business,” adding, “We will expand our overseas direct business with a spirit of continuous challenge to enhance revenue and corporate value, and share tangible results with stakeholders.”
Meanwhile, KT&G signed a memorandum of understanding (MOU) to promote the 'Green Globe Project,' which aims to assist with local forest restoration. The company plans to support the recovery efforts from the large-scale wildfire damage that occurred in Abai Province, Kazakhstan, in June 2023 through this project.
The agreement was established through a tri-party collaboration between KT&G, Kazakhstan's Ministry of Ecology and Natural Resources, and the Asia Forest Cooperation Organization (AFoCO), the first international organization specializing in forestry in the Asia region. The three entities will jointly work on recovery measures for the affected areas and preparing prevention strategies, as well as monitoring restoration effects. This marks the first participation of a private corporation in the wildfire recovery project in Abai Province.