KT&G Corp., South Koreas largest tobacco and ginseng company, has made a move into the Turkish tobacco market, and begun construction on a production plant in Tire Organized Industrial Zone. The expected production start is in March 2008, with a production capacity of two billion cigarettes a year. This represents an investment of KRW50bn (US$52.9mn), and is the companys first investment in the region.

KT&G explained that the reason Turkey was chosen for this production plant was its strategic geographic position and proximity to both European markets and the Middle East, the companys main export market. Turkey is the worlds seventh-largest tobacco consumer, and annual tobacco sales there reach 110 billion pieces, the company said. KT&G sold a total of $350 million worth of tobacco in 40 countries last year.

Tobacco Giants in Agean Region:

    * Philsa: The world’s biggest tobacco company Philip Morris and Turkish Sabancı Holding started production in 1992 in Torbalı
    * JTI: RJR Nabisco Holding sermayesi ile 1992de Torbalıda tesis kuran firma, 1999da Japan Tobacco İnternational (JTİ) bünyesine katıldı.
    * BAT: British American Tobacco (BAT) is producing the Viceroy, Pall Mall ve Kent brands
    * Imperial Tobacco: It started production in Manisa in 2005. Production brands are West, Davidoff and Maxim.
    * Gallaher: British company settled down in Menemen and will start production soon.