Eastern European-based pet food producer Kormotech has secured €40 million in funding from the European Bank for Reconstruction and Development (EBRD) to expand its wet pet food production facility in Kėdainiai, Lithuania.
The project, valued at €63 million in total, 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 currently includes three facilities – two in Ukraine and one in Lithuania.
The EBRD financing is a syndicated A/B loan totalling €40 million, with €20 million coming from the Dutch asset management fund ILX Fund. The bank has previously 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 family-owned company with Ukrainian origins and a global HQ located in Poland. The company is ranked among the top 50 pet food producers worldwide and its products are sold in 44 countries, both under its own brands and private label.
Brands include Optimeal, Club 4 Paws, My Love and Delickcious, and 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.
Kormotech offers all of its brands in the Central and Eastern European markets, focusing primarily on Romania, Bulgaria, the Baltic States, Poland and Greece, with additional interest in the Adriatic countries, the Czech Republic, and Hungary.
Co-founder and chief executive Rostyslav Vovk said: “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.
“We anticipate that in five years, European markets will contribute €300 million to Kormotech’s revenue.”
