Ukraine-based company Kormotech has received €40 million from the European Bank for Reconstruction and Development to build a second pet food plant in Lithuania.
The European Bank for Reconstruction and Development (EBRD) has provided Ukrainian pet food producer Kormotech with a finance package to expand its export operations and geographical diversification by building a second pet food plant in Lithuania. The total cost of the project will be €63 million.
The package is a syndicated A/B facility of €40 million, of which €20 million will be provided by the Dutch-based and SDG-focused asset manager ILX Fund.
The bank previously provided €15 million to Kormotech Group, a long-standing EBRD client, for constructing its first production facility in Lithuania, which has been operational since June 2020. It also provided a €3.3 million working capital loan during the Covid-19 pandemic in 2020.
Kormotech is one of the top market players in the Ukrainian pet food market and a Ukrainian producer of high-quality pet food for cats and dogs. The company is privately owned and has proliferated since its establishment in 2003. Its orientation towards export and geographical diversification is reportedly helping it mitigate the economic impact of Russia’s war on Ukraine.
The project is expected to help strengthen Kormotech’s human resources and skill development practices in response to ongoing labor market challenges in Ukraine. It will mainly open up new employment and training opportunities for women workers, veterans, and other underserved groups.
