AB Kauno Grūdai has increased its investment in a new breadcrumbs (coating systems) factory planned for construction in Kėdainiai. The company, which already operates one breadcrumb factory in Kaunas district, is building a second, larger facility. Upon completion, the production capacity will more than double, exceeding 21,000 tons per year.
“We began planning this investment back in 2022, and since then, its value has increased by 1.5 times, as has the planned capacity of the factory. The total investment will amount to €6.7 million, which will be financed through our own and borrowed funds. SEB bank has provided Kauno Grūdai with a €5 million loan, the majority of which will be used to construct and equip the new factory. The planned payback period for the factory is 6.7 years, and the breadcrumb business EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to increase by €1.5 million, reaching €3.3 million annually,” says Mažvydas Šileika, Financial Director of AB Akola group.
For the construction of the new factory in Kėdainiai, a plot of land with a building that has been abandoned for many years was purchased. The building will be renovated and adapted for the needs of the new factory. The over one-hectare plot will house production facilities, warehouses, and administration, and all the necessary infrastructure will be installed. The factory is expected to start operating in late March or early April 2025.
Currently, Kauno Grūdai's breadcrumb factory in Linksmakalnis, Kaunas district, has a production capacity of approximately 800 tons per month. The future new factory's breadcrumb production capacity will be 1,000 tons per month, or 12,000 tons per year. After the factory is built, the group's total breadcrumb production capacity will reach almost 22,000 tons per year. 24 new jobs will be created.
“We have probably done a good job in sales, as we are one of the largest manufacturers in the region, and our production line in Kaunas is fully loaded, operating 24 hours a day. Customers are asking for more products, the order list is growing, and we have nothing to offer. In the new factory, production will take place 360 days a year to meet the needs of existing and potential customers. Breadcrumbs are a niche product, and practically everything we produce is exported. The Baltic countries are our home market, and last year, 87% of our products were exported outside the region,” says Andrius Pranckevičius, General Director of AB Kauno Grūdai.
Last year, the main buyers of Kauno Grūdai's breadcrumbs were the United Kingdom, Poland, and Hungary.
“Lithuania's food and beverage sector is one of the largest in the country's manufacturing sector and plays a very important role in the Lithuanian economy. This investment in Kėdainiai demonstrates the company's consistent approach to sustainable development, aimed at expanding the range of food products that are attractive to export markets in the UK, Scandinavia, Southern and Western Europe. By financing the exporting food industry that uses local raw materials, we increase not only the company's but also the country's added value. We appreciate the opportunity to contribute to the growth of this sector, the development of AB Akola group's activities, and the increase in the production capacity of the future breadcrumb factory,” says Tadas Jonušauskas, Head of Corporate Banking at SEB bank.
In the financial year ended June 30, Kauno Grūdai produced 9,800 tons of breadcrumb mixtures, which are used in the production of breaded meat, fish, vegetables, and dairy products. The company sold 8,000 tons, and the remaining quantity was used by the group's poultry farms.