Kormotech, a Ukraine-based pet-food producer, is investing €60m ($65.4m) to expand its manufacturing facility in Lithuania.
The factory in the city of Kėdainiai was Kormotech’s first outside of Ukraine, opened in 2020 with an investment of €15m. The 4,500 square-metre site currently has an annual production capacity of 20,000 tons, which will increase to 25,000 tons once the project is completed.
Kormotech, which supplies branded and private-label cat and dog food, said the Kėdainiai expansion and funding will take place in four stages, starting in 2025 through to 2028. The company expects to take on 200 more workers in Lithuania over the next five years to add to the initial staffing count of 70.
“We consider Lithuania our second home market. While we plan to build new production facilities in Ukraine once the war is over, Lithuania currently serves as our gateway to the world,” CEO Rostyslav Vovk said in a statement.
“The plant has proven to be a reliable support system, consistently operating at full capacity and bridging the gaps when our Ukrainian plants experience disruptions. We are committed to expanding our facilities in Lithuania further with the construction of four additional production stages by 2028.”
Kormotech’s factory in south-west Ukraine is located in the Lviv region in the village of Prylbychi. The plant produces wet and dry pet foods with an annual capacity of 20,000 tons.
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The business was set up in 2003 and produces the brands Optimeal, Club 4, My Love and Master. Kormotech exports across Europe and Asia and select countries in South and North America, along with the Middle East.
Just Food has approached the company for an idea of its annual sales and profits.
Andrii Berezyuk, the director for Kormotech in Lithuania, added: “Since the start of our Lithuanian operations, both our production and sales goals have been achieved and exceeded, and we hired twice the number of employees originally planned.
“This successful experience, along with the smooth construction of our factory, favourable conditions in the Free Economic Zone, support from Invest Lithuania, and our well-established network of partners and suppliers, has led us to the decision to expand the facility in Lithuania.”
Kormotech said it expects the first new production line at Kėdainiai to become operational in 2025, with another three added over the course of the project to 2028.