KG Group invests €20m in new Lithuanian plant

KG Group invests €20m in new Lithuanian plant

Image courtesy of KG Group

KG Group – one of the biggest agriculture and food groups in the Baltic States – is launching a modern instant noodles production facility in Alytus city, Lithuania, after attracting €20m investment.

The newly introduced technologies will not only increase the production capacity, but they will also enable a greater variety of products and speed up the production process by 4-5 times.

The capacity of forty million units of instant food in cups that KG Group produces will be increased up to 180 million units per year.

“We are glad we will be able to meet the increased demand of local buyers, many of whom are European supermarket chains. A new production plant in Alytus city is our response to the rapid growth of consumer demand, and changes in global supply chains,” said Tautvydas Barštys, chairman of the board of KG Group. He added that Alytus city is strategically favourable from a logistical point of view, as KG Group exports 95 per cent of instant food production.

The new facility is an important addition to the KG Group chain of production. The new local facility expands the existing production capacity and at the same time allows to maintain the same level of quality control.

The 6,500 sqm production facility houses state-of-the-art equipment, which the company acquired from leading German, French, Swiss, and other manufacturers in Europe, complying with the latest quality standards (the highest AA grade according to BRC Global Standards Version 8).

The commercial range of instant foods produced by KG Group includes instant noodles and porridges in cups and pouches labeled with brands well-known in Lithuania and abroad, such as Sun Yan, Activus, Dorea, and Just Inn. More than forty major foreign companies, including large supermarket chains have their private label production with KG Group.

The technological features of the production facility will help KG Group introduce new products. KG Group produces new categories of instant products in cups such as pasta, cereal mixes, granola mixes, and couscous. Private label services are available as well.

KG Group started the instant product business eight years ago, when the first production facility, operating to date, was opened in Kėdainiai city.

Further plans of the company include the development of products and the range of items, an increase of sales volumes, a supply of new products to consumers, development of export volumes. The main focus is on exports to Western Europe, Spain, Great Britain, and Scandinavian countries.

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