KG Group Invests 20M EUR
in New Plant in Lithuania
European demand for instant noodles,
an Asian food staple, is increasing,
while the Covid-19 pandemic is
leaving many supply chains broken. As
European instant food buyers, such
as supermarket chains, are looking
for local producers, Lithuanian instant
food company invests 20M in a new
local production facility. This is the
second company’s production facility in
Lithuania.
September 7, 2020. Global Instant
Noodles market, according to a new
report, is growing despite the Covid-19
crisis, and is estimated to reach USD
32.1 Billion by 2027. Up till now, most of
this instant food has been produced and
bought from different Asian countries.
However, the coronavirus pandemic is
affecting the market of this Asian staple
food, among many others. As many
companies are looking to alter their
supply chains to be less dependent on
Asia, especially China, in the wake of the
Covid-19 crisis, they are exploring the
options of local production. Exclusive
reliance on Asian suppliers has shown its
drawbacks as supply chains were cut or
unreliable during the pandemic.
In order to satisfy the need for instant
noodles and porridges in the European
FMCG retail market, including the
UK, 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 having attracted 20M
EUR 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
today will be increased up to 180 million
units per year.
KG Group is already operating in the
UK, producing noodles, pasta, oatmeal
porridges and rice for this market. In
2019 more than 34 million units were
sold in the UK, while in 2020 this number
rose to 56 million units (sold until July,
2020). The products of KG Group may be
found in most large supermarket chains
of the UK. The new production facility is
expected to fill a significant portion of
demand for instant noodles in the UK
and to decrease the country’s reliance on
Asian suppliers.
“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
percent of instant food production.
The new facility is an important addition
to the KG Group chain of production.
To ensure the highest standards of
quality the group exerts control over and
takes responsibility for all processes of
production from field to table. KG Group
buys grain from Lithuanian farmers,
selects it with care and uses the groupowned
mill to ensure the highest quality
of flour. The new local facility expands
the existing production capacity and at
the same time allows to maintain the
same level of quality control.
The 6.5 thousand square meter
production facility houses state-ofthe-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 trust their
private label production with KG Group.
The technological features of the
production facility help to embrace the
competencies and knowledge of the
R&D Department even more effectively
introducing 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.
www.kggroup.eu/en
FDPP - www.fdpp.co.uk 23