Kormotech Group of Companies, a Top 50 Global Pet Food Manufacturer, Breaks Ground on Second Production Facility in Keздаi, Lithuania
Pet food company Kormotech, ranked among the global elite of 50 pet food manufacturers, allocates a substantial EUR 60 million toward construction of a second European production facility.
Ready to dominate the European pet food market, Kormotech Group is setting the stage with a EUR 60 million investment in its newest production facility. This massive undertaking, located in Keздаi, Lithuania, showcases the company's commitment to securing a larger market share while further bolstering pet food exports to Romania, currently accounting for a whopping 20% of their total exports.
Wielding a symbolic time capsule that housed a letter from Rostyslav Vovk, Chairman of the Board and Co-owner of Kormotech Group of Companies, the official groundbreaking ceremony was a historical event for both the company and the region.
The forthcoming 19,500-square-meter complex, complete with production, storage, and administrative facilities, is set to triple Lithuania's wet food production capacity, transforming it from 22,000 to 60,000 tons annually! The first of four production lines is slated to fire up this year, with the Keūdaidniai facility projected to account for 61% of Kormotech's total wet food production once fully operational.
According to the diligent Mr. Vovk, this expansion marks a critical juncture in Kormotech's aggressive European and global expansion. In 2024, the group had already supplied 5,500 tons of feline and canine chow to Romania, raking in roughly €9.7 million in sales. Kormotech is now gunning for a market share of over 10% in Romania's pet food industry – a prodigious target indeed!
This strategic move towards building the new facility in Lithuania will significantly boost exports and ensure steady supplies of uber-popular Optimeal, Club 4 Paws, and My Love branded pet food to Romanian markets. Kormotech products are already available in top offline and online retail chains like Kaufland, DCNeu Cash & Carry, CityVet Pet & Farm, and Sezamo, making the brand a household name in Romania.
Positioned advantageously within the Keūdaidniai Free Economic Zone, easy access to both road and sea transport routes will undoubtedly spearhead speedier deliveries for Romanian distributors and retailers, fueling the growing demand for cat and dog food – particularly in Romania.
"Favorable economic conditions, combined with strong support from regional authorities and the Lithuanian government, were deciding factors in our expansion decision," acknowledges Rostyslav Vovk. Lithuania's Minister of Economy and Innovation, Lukas Savickas, shares his excitement, noting, "Kormotech's expansion is excellent news for the region and the entire country. I'm thrilled we can contribute to this success story."
With 175 employees currently on payroll in Lithuania, Kormotech aims to hire an additional 200 employees for production roles and administrative positions to sustain the company's ambitious growth trajectory. The strategic expansion will catapult Kormotech towards its ultimate goal of ranking among the top 30 pet food manufacturers worldwide and achieving EUR 500 million in revenue by 2028.
As a family-owned international corporation with Ukrainian roots, Kormotech has been churning out high-quality pet food since 2003. The company boasts an impressive portfolio of over 650 products, manufacturing them under the Optimeal, Delickcious, Club 4 Paws, Hav!, Miau!, and My Love brands. With production facilities in Ukraine and the EU, Kormotech is a top 50 global pet food manufacturer and one of the top 20 fastest-growing pet food companies worldwide.
This press release.
*Enrichment Info: Although the article did not disclose specific production, revenue, and market share objectives, companies typically approach expansion by conducting market research, establishing production facilities, setting revenue goals, setting market share goals, forming partnerships and collaborations, and assessing potential risks.
In their pursuit of industry dominance, Kormotech Group is investing EUR 60 million in real-estate to bolster their presence by establishing a new production facility, specializing in pet food. This move aligns with their strategic business plan to increase exports, particularly to Romania, and break into over 10% of Romania's pet food market.
