KT&G begins construction in Kazakhstan of 4th overseas plant

KT&G Corp., South Korea's dominant tobacco company, said Thursday it has begun construction in Kazakhstan of its fourth overseas plant as part of its expansion strategy.

KT&G aims to complete the plant's construction by 2025 to export its products to the Eurasian region, the company said in a statement.

The company didn't provide the value of its investment in Kazakhstan.

Last month, KT&G announced its plan to build its second plant in Indonesia, with an aim of starting operations in 2026 and exporting products to neighboring and foreign countries.

The Korean tobacco firm aims to earn half of its sales from overseas businesses in 2027. It wants to achieve sales of 10 trillion won in 2027, compared with 5.9 trillion won in 2022.

While focusing on the conventional cigarette business, the company said it will reinforce its heat-not-burn (HNB) and health functional food product businesses.

HNB products are electronic devices that, unlike e-cigarettes, contain tobacco. The tobacco is heated to a high temperature without setting it alight and creating smoke that the user inhales.

KT&G has exported its HNB products to more than 30 countries since 2020 through the sales networks of the New York-based PMI.

In the cigarette division, the company earns 78 percent of its sales from the conventional cigarette business and 22 percent from the HNB business.

KT&G has six tobacco manufacturing plants -- three in South Korea and three overseas ones in Russia, Turkey and Indonesia.

Source: Yonhap News Agency

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