According to a report by Asiae on November 2, KT&G has announced plans to expand its production innovation base at the Next Generation Products (NGP) factory in Daedong Shin Dan-jin, South Korea. This move aims to establish a long-term vision for the medium term.
According to reports, the newly established Tanjin Factory has added three additional heating tobacco pod production equipment from the end of last year to this year. Furthermore, they have also set up an automated warehouse with a capacity to store up to 360,000 boxes.
This move is part of KT&G’s growth investment plan announced in January this year. The plan focuses on three core businesses – NGP, global cigarettes (CC), and health functional food, and promises to increase the sales share of non-cigarette businesses (NGP, health functional food, etc.) to over 60% by 2027 through investments and innovations in existing and new production sites in the NGP business division.
In addition, KT&G is reinforcing its investments and collaborations abroad. In September 2022, the company signed an agreement with the Ministry of Investment in Indonesia to establish a new factory for export in East Java. Last month, they also held a groundbreaking ceremony for a new factory in Kazakhstan, aiming to establish a Eurasian export outpost.
KT&G, the South Korean tobacco company, plans to boost its production capacity of heated tobacco products domestically through the expansion of its new Daejeon NGP factory. This expansion aims to drive global growth while also enhancing the company’s international competitiveness through the establishment of new overseas factories.