Keep E-cigarettes Grows – KT&G Expand Production Facilities

KT&G has added 2 e-cigarettes production facilities at the Sintanjin factory (Korea), and there are currently 7 in total. Moreover, it is expected to increase to 10 next year, with a production capacity of 10 billion e-cigarettes pods.

With the expansion of production scale, KT&G also built an automated warehouse last year that can store 400,000 boxes of electronic cigarettes per year.

KT&G also plans to build vape factories at other countries.

In addition to adding equipment at the Sintanjin factory, KT&G plans to gradually expand e-cigarette facilities at other domestic manufacturing plants. In addition, KT&G is planning to build a new factory in Kazakhstan by the end of next year in order to cope with the increased export volume in the future. At present, KT&G has exported e-cigarette ejectors to more than 30 countries, and the average annual growth rate of ejector exports has reached 24%.

The biggest motivation for KT&G to expand its e-cigarette business is the fast-growing market.

According to market research agency EuroMonitor and other data, the Korean e-cigarette 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. The share of KT&G e-cigarette products in its overall tobacco sales also expanded to 25% last year. KT&G aims to raise this ratio to more than 50 percent by 2025. With Lil Hybrid as the main product, KT&G surpassed Philip Morris International Korea in February last year and became the number one in the Korean e-cigarette market.

Previously, KT&G stated at the “Future Vision Announcement Ceremony” in January that it will focus on the three core businesses of e-cigarettes, global ordinary tobacco and health functional food, and invest about 4 trillion won in the next five years to achieve 10 trillion won. Sales in Korean Won. Especially in the field of new tobacco, KT&G plans to invest 1.2 trillion won to achieve sales of 2 trillion won by 2027. A KT&G official said, “Even in the face of the global economic downturn, we will continue to actively invest with a mid- to long-term vision.”