Korean outfit partners with Dubai-based Alokozay International
KT&G, South Korea’s largest tobacco maker, has signed a mega-sized contract with Alokozay International Limited, whose size is expected to be around $2 billion.
The Seoul-based outfit said on February 27 that the two sides had inked a seven-year contract, which will continue through the first half of 2027.
KT&G said that the long-term contract with the Dubai-based consumer giant guarantees a minimum quantity.
In case the two partners proceed with just the minimum amount over the next seven years, the deal would value $1.8 billion. Hence, the eventual size may be much bigger.
“The contract will secure stable revenue while minimizing risks in the significant market over the long haul,” a KT&G official said. “We will continue to do our best to expand our business in offshore markets.”
This marks KT&G’s second international cooperation this year after the deal with Philip Morris International late last month.
Back then, the former agreed to collaborate with the latter so as to export its e-cigarettes across the world for the next three years.
In the face of market saturation in South Korea, KT&G has vehemently tapped into the global markets with the goal of joining the rank of global top four players by 2025.
Toward that end, the former state monopoly vies to expand its export destinations to more than 100 countries this year from around 80 nations a year before.