KTand G Invested In Tobacco Plant In Russia $100 Million

The Korean company KT and G has opened in the Kaluga region of Russia a plant for the production of tobacco products. In half a year since the start of the construction of a plant the size of investments in the project amounted to $ 100 million. Totally the construction will cost $165 million.
It is expected that in the medium term, production will amount to 15 billion cigarettes a year. According to the calculations of the company, opening its own plant will enable it to strengthen its position in the Russian market by four times increasing the extent of its presence.  

In 2009 KT and G managed to take 1% of the Russian tobacco market, the company says, while in the category of Super Slims cigarettes  the proportion of Koreans accounted for 7,2%. Another reason for building their own plant in Russia KT and G named the desire to expand the local network of sales due to the direct management of distribution.