Kormotech Group Expands with $62M Factory in Lithuania
Ukraine’s largest pet food manufacturer, the Kormotech Group, is embarking on an ambitious project to construct a second plant in the Lithuanian city of Kėdainiai. With a goal of solidifying its presence in the European market, the company is investing a staggering €60 million ($62.27 million) into this venture. The European Bank of Reconstruction and Development (EBRD) is set to contribute the majority of this funding, marking a significant milestone for Kormotech’s expansion plans.
Tripling Production Capacity for Global Presence
The new factory, which will span an impressive 19,500 square meters (210,000 square feet), is expected to nearly triple Kormotech’s production capacity in Lithuania. This expansion will see a substantial increase from 22,000 to 60,000 tons per year, positioning the company as one of the top 30 global pet food producers. This strategic move underscores Kormotech’s commitment to meeting the growing demand for high-quality pet food products across Europe.
Rostyslav Vovk, Chairman of the Board and co-owner of the Kormotech Group, highlighted Lithuania’s appeal as the ideal location for this new facility. The strategic placement of Kėdainiai within a free economic zone offers logistical advantages, facilitating seamless transportation of goods by both road and sea. Vovk expressed confidence in Lithuania’s supportive business environment, citing the smooth construction process of the first plant and the backing received from local authorities and government agencies.
Creating Jobs and Fostering Economic Growth
In addition to enhancing its production capabilities, Kormotech has pledged to generate 200 new jobs through this expansion. These positions will complement the existing team of 170 Ukrainian and Lithuanian specialists, fostering collaboration and skill development within the workforce. The company aims to recruit primarily from Kėdainiai and its neighboring areas, with potential expansion to other regions like Kaunas, Jonava, Panevezys, and Šiauliai as demand grows.
Expert Insights and Industry Impact
As Kormotech embarks on this transformative journey, industry experts emphasize the significance of this investment in the pet food sector. The expansion not only elevates Kormotech’s competitive standing but also contributes to the economic vitality of Lithuania and the broader European market. By leveraging strategic partnerships and capitalizing on favorable market conditions, Kormotech is poised to make a lasting impact on the global pet food industry.
In conclusion, Kormotech’s ambitious venture in Lithuania signifies a pivotal moment in the company’s growth trajectory. With a steadfast commitment to excellence, innovation, and economic prosperity, Kormotech is set to redefine the landscape of the pet food industry. As the new factory takes shape in Kėdainiai, it heralds a new chapter of expansion, opportunity, and collaboration in the realm of pet food production.
