The European Bank for Reconstruction and Development (EBRD) has announced a financing package of €40 million for the Ukrainian pet food manufacturer Kormotech. This funding will enable the company to expand its exports and diversify its geographical reach.
According to the EBRD press release, the funds will be used to construct a second pet food production plant in Lithuania, with a total project cost of €63 million. The project also receives €20 million from the Dutch asset management fund ILX Fund, which focuses on sustainable development.
Previously, the EBRD provided Kormotech with €15 million for the construction of its first plant in Lithuania, which began operations in June 2020. Additionally, in 2020, the bank offered a €3.3 million loan to support Kormotech's working capital during the Covid-19 pandemic.
The new project is expected to strengthen Kormotech's human resource management and skills development in response to the challenging situation in the Ukrainian labor market. It aims to create new employment and training opportunities for women, veterans, and other groups requiring special attention. Furthermore, the project will enhance Kormotech's energy efficiency.
In September, Kormotech expanded its presence in international markets, becoming the first Ukrainian company to export pet food to Malaysia, marking a significant step in its international growth strategy.
