According to Daily Hankooki, KT&G is accelerating its overseas-oriented growth strategy. The company is strengthening its global tobacco business by expanding its overseas production facilities in Indonesia and Kazakhstan, while also actively expanding into new business areas such as nicotine pouches. With continued significant success in its overseas operations, KT&G's global influence is expected to further increase.
Industry insiders revealed on the 11th that KT&G's new factory in Indonesia will be completed this month and is expected to be fully operational by February next year. This new factory in Indonesia produces cigarettes and flavor capsules , with products exported to Southeast Asia and other overseas markets. The factory covers approximately 190,000 square meters. With the completion of this factory, KT&G's annual production capacity in Indonesia (including its existing factories) will reach approximately 35 billion cigarettes. Indonesia is expected to become KT&G's largest overseas production base.
KT&G's new factory in Kazakhstan was fully operational in April. This factory has an annual production capacity of 4.5 billion cigarettes and serves as KT&G's export base, meeting the needs of the Eurasian market. Currently, its operating rate is steadily increasing and is expected to reach 70% by the end of the year.
KT&G plans to maximize global supply efficiency in the medium to long term by producing more than half of its total output in overseas factories. With the expansion of overseas cigarette sales, the establishment of its global production system is also progressing smoothly.
KT&G is also actively preparing to enter new markets. In the fourth quarter, it plans to enter new countries such as Jordan and Bangladesh through local OEM licensing. Dah Sing Securities analyst Cheng Han-lu predicts, "Starting next year, KT&G will fully expand its nicotine bag business globally, entering Western Europe, the Middle East, and North America, while consolidating its strong reputation in Northern Europe." He added, "The performance of these new businesses will ensure further growth momentum."
Source: Daily Hankooki
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