- Ongoing growth investments in the overseas business sector
- Reaffirming commitment to the company's 'Global Top-tier' vision
SEOUL, South Korea, Oct. 12, 2023 /PRNewswire/ -- KT&G Corporation ("KT&G") (KRX:033780) held a groundbreaking ceremony for its new state-of-art manufacturing plant in Kazakhstan on October 11, 2023. The new Kazakhstan factory is expected to serve as the company's Manufacturing Innovation Hub in Eurasia and accelerate the company's long-term vision of becoming a 'Global Top-tier' company.
The groundbreaking ceremony took place at the site of the new factory in Almaty Province, Kazakhstan, and was attended by over 70 key figures, including KT&G CEO Bok-In Baek, Governor of Almaty Marat Sultangaziyev, Korean Consul General in Almaty Nae-cheon Park, and others.
KT&G's new Kazakhstan factory, spanning approximately 200,000m2 , will function as a hybrid production facility, accommodating both Next Generation Product("NGP") and conventional cigarette("CC") production and addressing export demands across the Eurasian region.
KT&G positions Kazakhstan as a key growth hub for strengthening its global export competitiveness. KT&G has been committed to building a strong local business presence in Kazakhstan by establishing local sales and manufacturing subsidiaries in January, 2023. Moving forward, KT&G plans to increase its global business capabilities and profitability by managing the entire value chain locally, from production to marketing and sales.
The construction of the new Kazakhstan factory is part of KT&G's long-term growth investment plan, which was unveiled at its Future Vision Declaration Ceremony held in January, 2023. At the ceremony, KT&G outlined its growth strategy to develop NGP, overseas CC, and Health Functional Food as its three core business areas. The company also shared its plans to increase the proportion of its overseas sales revenue to over 50% of its total sales revenue by 2027.
KT&G has also executed growth investments in Indonesia in September, 2023. The company conducted an investment support ceremony with the Indonesian Ministry of Investment and obtained an investment support letter with respect to the establishment of its new manufacturing plant in East Java province, Indonesia.
With this contemplated investment, KT&G strives to strategically position Indonesia as an export hub for the Southeast Asian market. In addition to having the Indonesian factory serving as an export hub for the Southeast Asian market, the company will utilize the Kazakhstan factory as a pivotal gateway for its Eurasian business expansion. The establishment of these two global production hubs is anticipated to strengthen KT&G's presence in both Southeast Asian and Eurasian markets, aligning with the company's 'Global Top-tier' vision.
KT&G CEO Bok-In Baek stated, "We expect the new Kazakhstan factory to serve as a core global production hub that encompasses the Eurasian market and become a frontline base for realizing our future vision of leaping forward to the 'Global Top-tier' status. We will continue to capture new business opportunities and increase our competitiveness through continued vigorous investments in our core business areas."
Photo - https://mma.prnewswire.com/media/2245206/KT_G_held_a_groundbreaking_ceremony_state_of_art_manufacturing_plant_Kazakhstan_October.jpg
Photo - https://mma.prnewswire.com/media/2245207/KT_G_held_a_groundbreaking_ceremony_state_of_art_manufacturing_plant_Kazakhstan_October.jpg
Logo - https://mma.prnewswire.com/media/1961370/4336454/KT_G_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/ktg-to-establish-a-new-factory-in-kazakhstan-that-will-serve-as-a-global-manufacturing-innovation-hub-301954341.html
