Kormotech, a leading Ukrainian manufacturer of cat and dog food, will expand its production in Kėdainiai, Lithuania, investing more than EUR60 million in four production stages to be commissioned in 2025-2028, the company’s press service told Interfax-Ukraine.
“Lithuania is now our window to the world. Our plant in Kėdainiai has become a reliable support for us – it always operates at 100% capacity, while in Ukraine we have to take into account the risks of shutdowns due to the war. We aim to further expand our capacity in Lithuania by building four additional production lines by 2028,” said Rostyslav Vovk, CEO and co-owner of Kormotech.
Kormotech launched its first foreign plant in Kėdainiai, Lithuania, in 2020. Currently, more than 170 specialists from Ukraine and Lithuania work at the wet feed production facility with a capacity of more than 20 thousand tons per year.
“Our successful experience of building and operating in Lithuania, favorable conditions in the free economic zone, support from Invest Lithuania and our well-established network of partners and suppliers led us to the decision to expand the enterprise,” emphasized Vovk.
Kormotech plans to launch the first new production line by 2025, adding a line each year until the four production lines are fully operational in 2028. As the expansion project progresses, the company will be interested in finding qualified engineers, technologists, and other highly specialized professionals in both Ukraine and Lithuania. With the new expansion project, Kormotech will double its current workforce in Lithuania, adding 200 new jobs in five years.
According to Elius Civilis, Director General of Invest Lithuania, the Lithuanian state agency, Kormotech’s expansion shows that Lithuania is open to foreign investors and creates truly favorable conditions for them.
“In Kėdainiai, Kormotech has built a modern, highly automated plant employing local specialists of various competencies. The company’s decision to expand its facilities and double the team size demonstrates the quality of both the local business infrastructure and talent,” emphasized Chivilis.
In Ukraine, Kormotech is constantly expanding its production capacity. During 2022-2023, the company invested about $14 million to modernize dry feed production and expand wet feed production by almost 70%.
“We plan to build new production facilities in Ukraine immediately after the war ends,” said Vovk.
Kormotech is a global family-owned company with Ukrainian roots that has been producing high-quality cat and dog food under the Optimeal, CLUB 4 PAWS, Woof, Meow! The company has production facilities in Ukraine and the EU. The product range includes more than 650 items.
The company is among the TOP-60 global pet food manufacturers and TOP-20 most dynamic pet food brands. Kormotech sells products of its own brands and those of its partners in 40 countries.
Currently, the company employs about 1300 people in five countries – Ukraine, Lithuania, Poland, Romania, and the United States.
Invest Lithuania is a non-profit agency under the Ministry of Economy of the Republic of Lithuania. Its mission is to attract foreign investment. It serves as a point of contact for foreign companies and accompanies international business at every stage of the process of starting a business in Lithuania, providing information on recruitment, tax benefits and financing options.
Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and a member of Metinvest Group, increased its blast furnace coke production by 19.5% year-on-year to 715.1 thousand tons from 598.6 thousand tons in January-October this year.
According to the company, in October 2023, it produced 72.6 thousand tons of blast furnace coke, while in October 2022 – 70.6 thousand tons (an increase of 2.8%).
“In 2022, Zaporozhkoks reduced blast furnace coke production by 11.9% compared to 2021 to 737.4 thousand tons, including 70.8 thousand tons of coke produced in December.
“Zaporozhkoks produces about 10% of coke in Ukraine and has a full technological cycle of processing coke products. It also produces coke oven gas and pitch coke.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
In January-September 2023, Zhydachiv Pulp and Paper Mill (ZhPPM, Lviv region) produced products worth UAH 397.8 million, up 6.5% compared to the same period in 2022.
According to statistics provided to Interfax-Ukraine by UkrPapir Association, in physical terms, corrugated packaging output increased by 18% to almost 17 million square meters, containerboard by 22.4% to 12.1 thousand tons, and paper by 9.6% to 3.3 thousand tons.
In particular, in September, the plant increased its production of paper and cardboard by 4.7% to 1.7 thousand tons by September 2022, and corrugated packaging by 10.3% to 1.83 million square meters. Compared to August this year, paper and cardboard production decreased by 20%, and corrugated packaging by 6.5%.
Zhytomyr Pulp and Paper Mill has a paper production capacity (base paper for corrugation, linerboard, cover paper) of 43 thousand tons per year, cardboard production capacity of 50 thousand tons, corrugated cardboard and corrugated packaging capacity of 120 million square meters, and cast containers (tray for 30 eggs) capacity of 72 million units per year.
As reported with reference to the association’s data obtained from the main industry enterprises, in the first nine months of the year, Ukraine produced 405.3 thousand tons of paper and cardboard (9.8% more than in the same period in 2022), and 379.6 million square meters of cardboard boxes (17.7% more).
In 2022, Zhydachiv Pulp and Paper Mill produced goods worth UAH 510.8 million, up 23.1% year-on-year, while net profit increased by 67.5% to UAH 41.76 million.
LLC “Cardboard and Paper Company” (Lviv), a major Ukrainian manufacturer of cardboard sleeves and sanitary-hygienic products, in January-September 2023 increased its output by 13.2% to UAH 965.6 mln ($965.6 mln) compared to the same period of 2022.
According to the statistical data of UkrPapir Association provided to Interfax-Ukraine, in physical terms the company increased the output of cardboard products by 1.9% – up to 20.5 thousand tons, paper-base for sanitary-hygienic products by 5.1% – up to 5.7 thousand tons. Output of toilet paper in rolls increased by 50% to 4.5 mln pieces.
At the same time, in September the company increased output of paper and cardboard by 6% compared to the same month last year – up to 3.13 thousand tons, which is also 2% more than in August this year.
Cardboard and Paper Company LLC produces products and semi-finished products from recovered paperboard (cardboard sheets, corners, sleeves), pulp and recycled waste paper (toilet paper, towels, napkins TM Papero). Supplies products to EU countries, among others.
Customers include Biosphere, Arterium, Nestle, Khlebprom, and Yarich.
As reported, in 2022, the factory, without suspending work during the year, increased the volume of marketable products by 51.5% compared to 2021 – up to 1 billion 186 million UAH. Net profit tripled to UAH 263.7 mln.
In January-September 2023, the volume of commercial output of Kyiv Cardboard and Paper Mill (Kyiv Pulp and Paper Mill, Obukhiv, Kyiv region), Ukraine’s industry leader in this indicator, amounted to UAH 5 billion 566.3 million, up 6.1% compared to the same period in 2022.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the plant’s production of corrugated boxes increased by 23.7% in volume terms, to 168.3 million square meters. Cardboard output increased by 9.2% to 124.8 thousand tons, driven by a 15.5% increase in containerboard output to 102.7 thousand tons, while boxboard output decreased by almost 13% to 22.1 thousand tons.
At the same time, the output of base paper for sanitary and hygiene products maintained a negative trend: in January-September, it decreased by 24% to 33.3 thousand tons, and the production of toilet paper in rolls also decreased by 24% to 188.17 million units.
Despite the decline in toilet paper production, the plant maintains a strong leadership in toilet paper production in Ukraine. In total, in the first nine months of 2023, the country’s major enterprises produced 444.63 million rolls (down 1.4%).
According to statistics, in September of this year, Kyiv Pulp and Paper Mill increased production of corrugated boxes by 13.2% to 19.6 million square meters by September 2022, and paper and cardboard by 1.3% to 18.1 thousand tons.
According to the association’s data from major industry players, in January-September this year, Ukraine recorded a 9.8% increase in paper and cardboard production (up to 405.3 thousand tons) and a 17.7% increase in cardboard boxes (up to 379.6 million square meters).
Kyiv Pulp and Paper Mill is one of Europe’s largest cardboard and paper products producers, employing over 2,500 people.
As reported, in 2022, the mill produced UAH 7 billion 432 million worth of products, which is 3.5% less than in 2021.
Mining company Ferrexpo plc with assets in Ukraine produced 3.218 million tons of pellets in January-September this year, down 42.9% year-on-year (5.637 million tons).
According to the company’s announcement on Thursday, pellet production in the third quarter of 2023 increased by 17% to 1.251 million tons compared to the previous quarter.
In 2023, only pellets with an iron content of 65% were produced.
At the same time, the total production of marketable products (pellets and iron ore concentrate) for 9 months of this year amounted to 3.475 million tons. Including the production of commercial concentrate in January-September 2023 amounted to 257 thousand tons.
As reported, in 2022, Ferrexpo produced 6.053 million tons of pellets, which is 46% less than in 2021. At the same time, pellet production in the fourth quarter of 2022 decreased by 86% compared to the fourth quarter of 2021, and by 50% to 417 thousand tons by September-December 2022.
In 2022, production of premium pellets with 65% iron content amounted to 5.7 million tonnes (down 47%), including 417 thousand tonnes in the fourth quarter (down 28% quarter-on-quarter and 86% year-on-year). Last year’s production of direct reduced iron pellets (DRI, 67% iron) amounted to 353 thousand tons (down 18% by 2021), which were not produced in the fourth quarter of 2022.
No pellets with 62% iron content were produced in 2022.
At the same time, the total production of commercial products (pellets and iron ore concentrate) in 2022 decreased by 46% to 6.177 million tons, in the fourth quarter compared to the third quarter – by 49%, and by Q4 2021 – by 85%, to 457 thousand tons. In particular, the production of salable concentrate last year decreased by 47% to 124 thousand tons, including 40 thousand tons in the fourth quarter of 2022 (down 38% quarter-on-quarter and up 3% year-on-year).
Total annual sales in 2022 amounted to 6.2 million tons, down 46% compared to 2021.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Yeristovo Mining, 99.9% of Bilanivsky GOK and 100% of Poltava Mining.
