Kormotech Starts Construction of $62 Million Factory in Lithuania

Ukraine’s largest pet food manufacturer the Kormotech Group has started construction of a second plant in the Lithuanian city of Kėdainiai aimed at strengthening its position in the European market.

The total cost of the project is estimated to be €60 million ($62.27 million), of which around two thirds will be allocated by the European Bank of Reconstruction and Development (EBRD), according to Kormotech’s press release.

The factory will triple Kormotech’s production capacity and help it reach a place among top 30 global pet food producers, the company statement said.

“The new production, warehouse and administrative complex with an area of 19,500 square meters (210,000 square feet) will almost triple production capacity in Lithuania - from 22,000 to 60,000 tons per year,” the press release said.

After completion of construction, 61% of the total volume of Kormotech “wet feed” will be produced in Kedainiai, according to the company.

Rostyslav Vovk, Chairman of the Board and co-owner of the Kormotech Group of Companies, said in a press release that Lithuania was chosen because of logistics capabilities and its declaration of a free economic zone.

The central location of the Kedainiai Free Economic Zone simplifies the transportation of products by road and sea, the press release said.

“The extremely smooth construction process of the first plant, favorable conditions and support from the Lithuanian government, in particular through the Invest Lithuania agency, as well as local authorities, convinced us that it is worth continuing the expansion here,” Vovk said.

Other Topics of Interest

Ousted President Yanukovich’s Son Linked to Coal Exports from Occupied Territories

The investigation by “Important Stories” uncovers hidden deals, shell companies, and sanction evasion benefiting the ousted president’s son.

Kormotech promised it will create “200 new jobs, which will complement the [existing] team of 170 Ukrainian and Lithuanian specialists and the development of related industries”.

The press release said, “The majority of employees are residents of Kėdainiai and the surrounding areas, but as demand increases, the recruitment may be extended to Kaunas, Jonava, Panevezys and Šiauliai.”