Kazakhstan: KT and G Corp., South Korea's dominant tobacco company, said Wednesday it has completed construction of its fourth overseas plant in Kazakhstan, as part of its global expansion strategy. The Kazakhstan facility will serve as a production hub for exports of its products to the Eurasian region, including the Commonwealth of Independent States (CIS), the company said in a press release.
According to Yonhap News Agency, KT and G made the investment as part of its goal to earn half of its total sales from overseas markets by 2027. It aims to achieve sales of 10 trillion won (US$6.99 billion) by 2027, up from 5.9 trillion won last year. To meet the target, KT and G has recently expanded its production facility in Turkey and is building its second plant in Indonesia, which is expected to begin operations in 2026.
While maintaining a focus on conventional cigarettes, the company said it will also strengthen its businesses in heat-not-burn (HNB) products and health functional foods. HNB products are electronic devices that, unlike e-cigarettes, contain real tobacco. The tobacco is heated to a high temperature without being burned, producing a nicotine-containing aerosol that users inhale.
KT and G currently operates six tobacco manufacturing plants: three in South Korea and three overseas, located in Russia, Turkey, and Indonesia.