LVIV, UKRAINE — Ukrainian pet food producer Kormotech has secured €40 million ($41.6 million USD) in funding from the European Bank for Reconstruction and Development (EBRD) to expand its wet pet food facility in Kėdainiai, Lithuania. The €63 million ($65.5 million USD) project will include the addition of four new production lines. The first phase of the project will begin construction in early 2025 and is expected to be complete by 2028.

“The new plant in Lithuania will allow us to meet Europe’s growing demand for quality pet food at competitive prices,” said Rostyslav Vovk, chief executive officer and co-founder of Kormotech. “We are actively enhancing our partnerships with local distributors and are eager to explore new collaborations.”

The new plant will expand Kormotech’s current production capabilities, which include three facilities, two in Ukraine and one in Lithuania, which opened in 2020 and now produces up to 20,000 tons of pet food annually, according to the company.

Kormotech offers all its brands, including Optimeal, Club 4 Paws and My Love, in the Central and Eastern European markets. The products are sold through online platforms, in supermarket chains and in pet stores. The company’s newest brand, Delickcious, launched in Romania, Lithuania and Poland.

Kormotech is focusing its distribution efforts on Romania, Bulgaria, the Baltic States, Poland and Greece due to growth in pet food sales in those areas. Romania’s pet food market is expected to grow by 9.4% annually and the market in Poland is expected to see a 7% annual increase, according to the company.

The expansion in Europe will help Kormotech achieve its strategic goal of being among the Top 30 pet food producers globally and reaching €500 million ($520 million USD) in revenue by 2029.

“We anticipate that in five years, European markets will contribute €300 million to Kormotech’s revenue,” Vovk said.

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