Kormotech, a family-owned global company with Ukrainian origins and a top-50 global pet food producer, has secured €40 million (US$41.6 million) in funding from the European Bank for Reconstruction and Development (EBRD). The investment will be used to expand its wet pet food production facility in Kėdainiai, Lithuania, by adding three additional phases and boosting the company’s production capacity.
The project, valued at €63 million, will include four new production lines, with the first phase of construction beginning in 2025 and full completion expected by 2028. The new plant will expand Kormotech's current production capabilities, which already include three facilities: two in Ukraine and one in Lithuania, opened in 2020.
The company is focusing primarily on Romania, Bulgaria, the Baltic States, Poland and Greece, with potential interest in the Adriatic countries, the Czech Republic and Hungary. Kormotech Global's headquarters are located in Poland. This strategic focus is driven by geographic proximity and economic forecasts. For example, Romania's pet food market is expected to grow by 9.4% annually, while Poland’s will see a 7% annual increase.
“The new plant in Lithuania will allow us to meet Europe's growing demand for quality pet food at competitive prices. We are actively enhancing our partnerships with local distributors and are eager to explore new collaborations”, said Rostyslav Vovk, CEO and co-founder of Kormotech.
Kormotech offers all of its brands in the Central and Eastern European markets: Optimeal — super-premium food for cats and dogs, Club 4 Paws — premium food and My Love — standard-class food. These products are sold through online platforms, in supermarket chains and pet stores. The new super-tasty food brand, Delickcious, has already launched in Romania, Lithuania and Poland.
The expansion in Europe will help Kormotech achieve its strategic goal of entering the global top 30 pet food producers and reaching €500 million in revenue by 2029.
"We anticipate that in five years, European markets will contribute €300 million to Kormotech's revenue”, says Rostyslav Vovk, CEO and Co-Founder of Kormotech."
The EBRD financing is a syndicated A/B loan totaling €40 million, with €20 million coming from the Dutch asset management fund ILX Fund. Previously, the bank supported Kormotech with €15 million to establish its first plant in Lithuania, which opened in 2020 and now produces up to 20,000 tons of pet food annually."
Kormotech is a global family business with Ukrainian roots, producing premium pet food for cats and dogs under the brands Optimeal, Club 4 Paws, Hav!, Myau! and My Love since 2003. The company operates manufacturing facilities in Ukraine and the EU, offering over 650 products.
Adapted from a press release.
