Manufacturer KT&G opens new cigarette factory in Kazakhstan

On April 22, 2025, South Korean group KT&G inaugurated a cigarette production plant in Almaty, Kazakhstan, marking a new milestone in its international expansion strategy. Estimated to cost nearly $135 million, the industrial site aims to produce 4.5 billion cigarettes annually, destined not only for the local market but also for export to Eastern Europe, the Commonwealth of Independent States (CIS) countries, and other Eurasian markets.[1].

While this decision is part of an economic dynamic, it also raises serious questions about the tobacco industry's stated commitments to reducing global smoking.

A strategic location in the heart of Eurasia

The new 52,000 m² plant is KT&G's first direct production facility in the Central Asian region. It is fully in line with the group's ambition to achieve 50% of its profits from international markets by 2027. Kazakhstan, with its geographical location, regional trade agreements, and still-high tobacco consumption rate, represents a privileged logistics and commercial platform to meet regional demand and support exports.

According to official sources, the site was built in record time, with high-capacity production equipment capable of producing several billion cigarettes annually. Distribution will focus on surrounding markets, including Uzbekistan, Kyrgyzstan, Georgia, Azerbaijan, and potentially Russia. Other projects are already underway, such as the completion of a new factory in Indonesia, scheduled for 2026.

This announcement was widely publicized in South Korea.[2] and Kazakhstan, and hailed by local authorities as a symbol of foreign industrial investment in the region. However, this operation is also part of a broader international effort to reduce both the consumption and the supply of tobacco products, due to their impact on public health.

A business strategy focused on emerging markets

KT&G's establishment in Kazakhstan reflects a deliberate industrial strategy: to maintain, or even strengthen, the production and marketing of manufactured cigarettes in middle-income countries, where legislation is often less strict, prevention less developed, and populations more exposed to the influence of economic actors. These facilities thus aim to perpetuate traditional tobacco markets, with priority targeting on regions where smoking remains high.

While major manufacturers are making numerous declarations in favor of a "smoke-free world" and claiming to be orienting their business toward supposedly reduced-risk products, concrete investments in the production of conventional cigarettes demonstrate a very different reality.

In this context, KT&G's strategy—and that of the tobacco industry more broadly—appears to be in flagrant contradiction with the international public health objectives promoted by the World Health Organization and the commitments made by States under the Framework Convention on Tobacco Control (FCTC). Far from paving the way for a transition to a global decline in smoking, these investments demonstrate a desire to stabilize, or even reinforce, tobacco addiction in various geographical areas.

This dynamic underscores the urgency of strengthening tobacco prevention and control policies, particularly in low- and middle-income countries, which remain the prime target of the tobacco industry's commercial expansion. It also calls for increased vigilance regarding the stated commitments of tobacco multinationals, which are belied by their concrete actions on the ground.

©Generation Without Tobacco

AE

[1] Zhanel Zhazetova, South Korean KT&G invests nearly $135 million in tobacco production in Kazakhstan, Kurziv Media, published April 23, 2025, accessed April 24, 2025

[2] Kim Ju-Yeong, KT&G finishes construction of tobacco plant in Kazakhstan, Korea JoongAng Daily, published April 23, 2025, accessed April 24, 2025