KIKA Group invests €20.5 million in new canning facility in Lithuania
The new site aims to meet the growing demand for wet pet food across Europe and Southeast Asia.
The Baltic manufacturer and retailer announced plans to invest €20.5 million ($21.6M) in constructing a new food canning facility in the Kaunas District Municipality, 120 km from the capital, Vilnius.
The new facility, which is expected to span 7,200 square meters, will equip 2 production lines and have an annual production capacity of 11,000 tons. It will also create around 100 new jobs.
The plant will strengthen KIKA Group’s market position by expanding its product range and export capacity across Europe and Southeast Asia. It will also support local markets in Lithuania and Estonia. Last year, Hong Kong (91%) and Taiwan (88%) were its fastest-growing markets.
Meeting product demand
KIKA Group will extend its portfolio under the “Nature Protection” functional pet food line and introduce 52 new high-quality wet food products for local and international markets while using enhanced capabilities.
These are expected to meet the growing demand for premium wet food in convenient, pouch-style packaging.
“Our distinctive feature is our high product quality and flexibility,” says company Co-Founder Tauras Plungė, noting the company’s intention to work closely with major European supermarket chains to enhance its product offerings.
KIKA Group has consistently worked to cater to a broader global audience. The company presently exports to 65 countries, with the group’s export sales increasing 35% year on year as of February 2024.
Sustainability approach
The new plant will source up to 500 kW of energy from a rooftop solar power plant. Advanced air-to-air and air-to-water heat pumps will be integrated to maximize energy efficiency and recover the heat generated during production.
The site also aims to achieve flexible energy management, enabling connection to storage systems and generators to respond to energy price fluctuations.
Nordic-Baltic banking group Swedbank has injected €16.4 million ($17.5M) in financing for the project, affirming its dedication to supporting sustainable industry initiatives.
(Photo credit: KIKA Group)
