KT&G breaks ground on new plant in Kazakhstan

South Korea's KT&G Corp., the world’s fifth-largest tobacco maker, announced on Thursday the commencement of its new factory's construction in the Almaty Region of Kazakhstan, reinforcing its strategic push into Eurasian markets.

Envisioned as a hybrid production base, the facility aims to cater to rising overseas demand for e-cigarettes and traditional tobacco products in Europe, CIS, and adjacent regions.

With an expanse spanning approximately 200,000 square meters, this ambitious venture underscores Almaty Region's and, by extension, Kazakhstan's growing importance in KT&G's global business map.

Since the launch of its sales and manufacturing arm in the country last January, the firm has steadily fortified its local foothold. This meticulous groundwork integrates everything from production to marketing and sales, epitomizing a comprehensive local value chain. It aligns with KT&G's Future Vision Declaration unveiled earlier this year.

The firm's vision crystallizes around three pivotal areas: next-generation product cigarettes, conventional global cigarettes, and health-functional food. By fortifying its overseas operations, KT&G aspires to have global sales constitute over half its revenue by 2027.

In September, KT&G secured a vital agreement with Indonesia's investment authority, setting the stage for another production hub in East Java, Indonesia, targeting the Southeast Asian market. The Kazakhstan factory, particularly in the Almaty Region, remains pivotal, cementing its role as KT&G's linchpin for Eurasian business expansion.

Write to Young Chan Song at 0full@hankyung.com