Kormotech secures EUR 40 mln from EBRD to expand pet food production in Europe

Kormotech, a family-owned global company with Ukrainian origins and a top-50 global pet food producer, has secured EUR 40 mln 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 significantly boosting the company’s production capacity.

The project, valued at EUR 63 mln, 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”, says 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 EUR 500 mln in revenue by 2029.

"We anticipate that in five years, European markets will contribute EUR 300 mln to Kormotech's revenue”, says Rostyslav Vovk, CEO and Co-Founder of Kormotech.

The EBRD financing is a syndicated A/B loan totaling EUR 40 mln, with EUR 20 mln coming from the Dutch asset management fund ILX Fund. Previously, the bank supported Kormotech with EUR 15 mln to establish its first plant in Lithuania, which opened in 2020 and now produces up to 20,000 tons of pet food annually.