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Korean Tobacco and Ginseng to Begin Production in Izmir |
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Thursday, 17 April 2008 15:17 |
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The Korean Tobacco and Ginseng Corporation (KT-G) begins production today at its new factory established in the Tire Industrial Zone in İzmir. The South Korea-based company plans to produce four types of cigarettes in Turkey.
The company's entrance in Turkey, just after the sale of cigarette department of Turkey's alcohol and tobacco monopoly (TEKEL) to British American Tobacco, will heat the competition in Turkey's YTL 20-billion market, where 110 billion cigarettes are sold annually. The company “will produce for domestic consumption as well as for exports to Europe, Iran and the Turkic Republics,” said Necati Gün Akal, coordinator at KT-G Turkey. KT-G will produce four brands, said Akal, and added “Esse is the most well-known brand of KT-G, which is the leading company in slim cigarettes. As the sixth largest company in the world, KT-G holds 80 percent of South Korea's cigarette market.” KT-G's annual production capacity will be two billion cigarettes at the initial stage. The company's investment, which totals $20 million for the first stage, might rise to $100 million in parallel with an increase in sales. KT-G entered the Turkish market five years ago, but suspended its investment later on a provision concerning new technology requirements. The company is aiming for the Turkic Republics in order to gain a foothold against European and U.S. giants. Source: Izmir Referans Translation by: TDN |
