Ukraine-based pet-food business Suziria Group is set to build a new wet pet-food site after receiving a $2m grant.

The USAID Investment for Business Resilience Activity (IBR) approved the grant and will fund Suziria’s new site in Kalush after a Russian missile attack damaged the pet-food group’s warehouse in Kharkiv.

After the attack, Suziria relocated its grain feed production to Kalush. At this new site, it also set up facilities for the production of meat treats for dogs and cats. Meanwhile, some manufacturing units continued to operate in Kharkiv.

With the support from IBR and the launch of a new wet pet-food production line, Suziria will be able to increase its own production capacity in Ukraine, create 130 new jobs and “significantly reduce its production costs”, according to a statement.

The Ukrainian company currently relies on contracted wet pet-food production at partner facilities in EU countries.

However, after developing its own production capacities, Suziria will “phase out imports of this product category and expand their sales geography”, it said.

The group plans to export its wet pet-food products to other European countries within three years.

Polina Kosharna, co-owner of Suziria Group, said: “Russia’s armed aggression against Ukraine and the depreciation of the national currency affected the company’s operations. All this prompted us to revisit our business model and focus on developing our own production facilities in the west of the country.

“We are grateful to IBR and the partner banks. Our cooperation demonstrates that all the stakeholders are committed to Ukraine’s victory and are ready to invest in the development of competitive businesses and support to the Ukrainian economy.”

The IBR is a five-year programme aimed at supporting systemic changes in Ukraine’s economy and increasing the supply of finance available to Ukrainian businesses.

“Despite the constant shelling of Kharkiv and the loss of some of its stores in the temporarily occupied territories, Suziria Group has not stopped, but continues to grow and adapt to the new realities,” said Yulia Vitka, deputy chief of party of the IBR.

“The launch of advanced production facilities, the creation of new jobs, and, in the long run, access to new external markets will contribute to Ukraine’s economic recovery and GDP growth, which will be of benefit to both the company and the country as a whole.”

According to the terms of the grant, Suziria will use an additional $4.5m through loans from Ukrainian banks and its own resources.