KIEV, UKRAINE — The Ukrainian pet food producer, Kormotech Group, will expand its domestic and international operations thanks to a loan of up to €10 million provided by the EBRD.
The funds are part of a wider investment program, which includes the construction of a new production facility in Lithuania and the expansion of the group’s activities in Ukraine. Legal due diligence for the project is partially funded by the Japan-EBRD Technical Cooperation Fund.
As part of the project, Kormotech will support the expansion of specialized veterinary education across Ukraine to improve the job prospects of young professionals from remote areas.
According to EBRD, Kormotech Group is one of the top three market players in the Ukrainian pet food market and the first and largest Ukrainian producer of high-quality pet food for cats and dogs. The company is privately-owned and has grown rapidly since its establishment in 2003. Today the company sells its products in 25 countries.
With the current expansion program, the company plans to meet growing domestic demand as well as diversify its sales geographically with a strategic goal to become one of the top global pet food companies. The plant in Lithuania will allow Kormotech to create a new pillar in the E.U. common market and will have better access to E.U. countries, as well as long destination export markets like Latin America.
The EBRD is an investor in Ukraine and to date has committed more than €14.5 billion in over 450 projects to the country. The bank’s investments in Lithuania stand at €900 million at present.