Ukraine's Kormotech considers expanding dry pet food production in Romania
Leading Ukrainian pet food manufacturer Kormotech is evaluating options to expand dry pet food production either within Ukraine or by establishing operations in Romania, according to Kormotech Chief Operating Officer (COO) Ihor Paraniak in an interview with Interfax-Ukraine.
"We currently operate two plants in Ukraine – one for wet pet food with an annual capacity of 27,000 tonnes and another for dry pet food with a capacity of 55,000 tonnes. In 2023, we modernized and expanded the wet food plant, investing EUR 8.5 million in 2022 despite the ongoing war. Now, we are considering expanding dry food production and are exploring both Ukrainian and Romanian options," Paraniak explained.
He emphasized that Poland, Romania, and neighboring countries are strategic markets for Kormotech, making Romania a potential location for additional overseas manufacturing facilities.
"Our key criteria [for selecting a site] include the presence of free economic zones offering attractive investment conditions such as tax incentives or investment returns similar to those in Lithuania. For example, some zones exempt businesses from profit tax for a certain period... These are the conditions we're consider first and foremost before making a decision. In addition to incentive conditions for placing the production facilities, we also see Romania as a growing market for our sales, so local production could provide a more direct route to customers and enhance their loyalty," Paraniak said.
As reported, Kormotech has already commenced construction of a new wet pet food plant in Lithuania, investing EUR 60 million, with EUR 40 million financed by the EBRD. The facility is expected to have a production capacity of 40,000 tonnes and create 200 jobs. The first phase is scheduled for launch in the second quarter of 2026, with all four phases completed by 2028.
Kormotech is a global family company with Ukrainian roots, which has been producing cat and dog food under the Optimeal, Club 4 Paws, Gav!, Miaow! brands since 2003. The company has production capacities in Ukraine and the EU, with an assortment of more than 650 items.
Kormotech is a leader in Ukraine, included in the top 50 world producers of animal food and the top 20 most dynamic pet food brands. It sells its own brands and partners' labels in 46 countries.
Kormotech Group ended 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. In total, it sold 83,000 tonnes of dry and wet food for cats and dogs last year, which is almost 7.5% more than in 2023.
With the participation of CFI, Agence française de développement médias, as part of the Hub Bucharest Project with the support of the French Ministry of Foreign Affairs