Kormotech allocates sixty million euros for the construction of a second European production facility, ranking among the world's leading pet food manufacturers.
Kormotech Expands Pet Food Production in Lithuania
Kormotech Group of Companies, a top 50 global pet food manufacturer, is expanding its production capacity with the construction of a second factory in Keḍainiai, Lithuania [1]. This investment, valued at €63 million, will support increased manufacturing and export operations.
The new facility, spanning 19,500 square meters, will include production, storage, and administrative facilities. Once fully operational, it will account for 61% of Kormotech's total wet food production. The first of four production lines is set to go live this year.
Kormotech's strategic location in the Keḍainiai Free Economic Zone provides convenient access to both road and sea transport. This strategic positioning will undoubtedly boost the company's logistics and distribution capabilities.
The expansion is part of Kormotech's broader strategy to increase its market share in Eastern European markets, such as Romania. Although a precise target market share percentage for Romania's pet food industry is not explicitly stated, the company aims to secure a significant foothold in the region. In fact, Kormotech has already supplied 5,500 tons of cat and dog food to Romania in 2024, generating around €9.7 million in sales [1].
Lithuania's Minister of Economy and Innovation, Lukas Savickas, has expressed his support for Kormotech's expansion, acknowledging the positive impact it will have on the local economy.
In addition to the economic benefits, the expansion will also create significant employment opportunities. While specific data regarding job creation has not been provided, given the scale of the €63 million investment, it is reasonable to infer that the new manufacturing plant will generate a substantial number of jobs, with Kormotech planning to hire an additional 200 employees upon completion, primarily for production roles and administrative positions.
Kormotech manufactures products under several well-known brands, including Optimeal, Delickcious, Club 4 Paws, Hav!, Miau!, and My Love. These products are currently available in 44 countries. The company's ultimate goal is to become one of the top 30 pet food manufacturers globally and reach €500 million in revenue by 2028.
In conclusion, Kormotech's expansion in Lithuania signifies a strategic move to diversify and grow its production and market presence in the European region, despite geopolitical challenges. This investment will not only boost Kormotech's manufacturing capabilities but also contribute to economic growth and job creation in Lithuania.
[1] Source: Kormotech press release, 2022.
Investing in the new factory will help Kormotech expand its business in real-estate and manufacturing, particularly in the pet food industry. This strategic move is expected to increase the company's market share in Eastern European markets, such as Romania, and potentially secure a significant foothold in the region.
The expansion will also create numerous job opportunities in finance, production, and administrative roles, further contributing to the local economy.
