The EBRD Board of Directors is planning to consider this project at its meeting on September 11, it said. Vengast Investments Ltd (Cyprus), a holding company of the group, and its subsidiary Kormotech UAB (Lithuania) will be the direct beneficiaries of the loan, it said.
The project will support Kormotech's strategy to expand export operations and geographic diversification, and help step up the human resources policy due to problems on the labor market in Ukraine, it said. Additionally, the allocated funds will allow the company to improve energy efficiency, as a new plant building will be constructed with regard to energy performance.
The EBRD said that the total cost of the project is 63 million euros.
Kormotech is a global family company with Ukrainian roots, which has been producing cat and dog food under the brands Optimeal, Club 4 Paws, Woof!, and Meow! since 2003. The company has production facilities in Ukraine and Lithuania with a range of over 650 products.
The group's turnover rose 22.5% to $152 million in 2023 from $124 million year-on-year. The ratio of sales abroad and in Ukraine in tonnes is now 31% to 69%, respectively, while it was 28% to 72% in 2022. The Kormotech brands grew most rapidly on the markets of Romania (+35%), Poland (+11%), and Moldova (+11%).
Kormotech's ultimate beneficiaries are Yelena and Rostislav Vovk.
