Ukraine's Kormotech plans to triple production capacity in Lithuania by 2028 – COO
Leading Ukrainian pet food manufacturer Kormotech has commenced construction of a new wet pet food plant in Lithuania with a planned capacity of 40,000 tonnes. The first phase is set to launch in the second quarter of 2026, according to the company's Chief Operating Officer (COO), Ihor Paraniak, in an interview with Interfax-Ukraine.
"Given the global growth of the wet pet food market, we decided to expand our capacity. We concluded that building a new factory in Lithuania is the most suitable option, as we already have experience in the Lithuanian market and an established team. Additionally, Lithuania offers grant assistance to investors for large-scale projects [20% cashback]. That's why we've decided to build another factory in Lithuania, it will be twice as big as the existing one, located next to," Paraniak stated.
Kormotech's existing plant in Kedainiai, Lithuania, has been operational since 2020, with a full capacity of 20,000 tonnes across four production lines. In February, the company secured a EUR 40 million loan from the EBRD to begin construction of a second facility. The total investment in the new project amounts to EUR 60 million.
The new plant will be developed in four stages, ultimately reaching a production capacity of 40,000 tonnes and creating 200 new jobs.
"The first phase is scheduled for launch in the second quarter of 2026, the second by the end of the same year, with the third and fourth phases to follow depending on demand growth. By 2028, we aim to have all phases operational, bringing our total production capacity in Lithuania to 60,000 tonnes," Paraniak said.
The new factory will incorporate several technological advancements, including increased automation. While approximately 80% of production processes at the current plant are automated, the new facility will achieve nearly 99% automation.
"Some changes will be made to the manufacturing process itself. Currently, we use steam tunnels to produce chunks in sauce or jelly, but the new facility will adopt a different technology to broaden our range. Additionally, we will optimize packaging processes," he added.
Kormotech is a global family company with Ukrainian roots, which has been producing cat and dog food under the Optimeal, Club 4 Paws, Gav!, Miaow! brands since 2003. The company has production capacities in Ukraine and the EU, with an assortment of more than 650 items.
Kormotech is a leader in Ukraine, included in the top 50 world producers of animal food and the top 20 most dynamic pet food brands. It sells its own brands and partners' labels in 46 countries.
Kormotech Group ended 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. In total, it sold 83,000 tonnes of dry and wet food for cats and dogs last year, which is almost 7.5% more than in 2023.
With the participation of CFI, Agence française de développement médias, as part of the Hub Bucharest Project with the support of the French Ministry of Foreign Affairs