According to the Korean media “Seoul Economic Daily” reported on July 4, KT&G in the new Tanjin plant (KT&G Korea plant) added two new heating and non-combustion production facilities, the current total of seven.
According to reports, KT&G plans to gradually increase the number of heating non-combustion plants, which is expected to increase to 10 next year. After the completion of the expansion, the capacity of the new Tanjin plant is expected to reach 10 billion heating non-combustion bombs next year. With the expansion of production scale, KT&G also built an automated warehouse last year that can store 400,000 boxes per year.
In addition to adding equipment at the new Tanzim plant, KT&G plans to gradually expand e-cigarette facilities at other manufacturing plants in the country. In addition, to cope with future increased exports, KT&G is planning to build a new plant in Kazakhstan by the end of next year. At present, KT&G has exported heated non-combustion and special smoke bombs to more than 30 countries, with an average annual growth rate of 24 percent.
The biggest driver for KT&G to expand its heat-not-combustion business is the fast-growing market. According to market research firm EuroMonitor and other data, the size of the Korean heating and non-combustion market has grown from 490 billion won in 2017 to 2 trillion won in 2020 and is expected to grow to 2.5 trillion won by 2025. KT&G also expanded its share of heat-not-burn products to 25 percent of its overall tobacco sales last year. KT&G aims to increase this to more than 50% by 2025. With Lil Hybrid as its main product, KT&G overtook Philip Morris International Korea in February last year to become the No. 1 heating and non-combustion market in Korea.
Earlier, KT&G announced at the “Future Vision Announcement ceremony” in January that it would invest about 4 trillion won and achieve 10 trillion won in sales over the next five years, focusing on its three core businesses of heating without burning, global general tobacco and healthy functional food. Especially in the new tobacco sector, KT&G plans to invest 1.2 trillion won and achieve 2 trillion won in sales by 2027. A KT&G official said, “Even in the face of impacts such as the global economic downturn, we will hold a medium – and long-term vision and continue to invest actively.”
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【1】”생산설비 증설” 전자담배 키우는 KT&G