Zoglovec Completes $30 Million Sausage Plant Near Lebanon Border Amid War
Translated & summarized from Globes by baba
Food manufacturer Zoglovec has completed a new 120 million shekel sausage factory in Shlomi, near the Lebanese border, despite significant delays caused by the war. The advanced, automated facility aims to boost production and expand its premium product offerings. This investment underscores Zoglovec's commitment to the region and its employees amidst challenging security conditions. The company is also undergoing broader changes, including international expansion.
The story in 6 lines · by baba
- Zoglovec invested 120 million shekels in a new automated sausage factory in Shlomi near the Lebanon border.
- The war in northern Israel caused significant delays, extending the factory's construction by about 1.5 years.
- The new facility is designed to increase production capacity and expand Zoglovec's premium sausage offerings.
- Chilled sausage sales in Israel reached an annual rate of approximately 257 million shekels in 2026.
- Zoglovec holds a 42% market share in the Israeli chilled sausage category.
- The company recently acquired a stake in a Thai factory specializing in meat alternatives.
Food manufacturer Zoglovec has completed the construction of a new sausage factory in the northern Israeli town of Shlomi, with an investment of approximately 120 million shekels (about $30 million USD). The 2,000-square-meter facility is located just hundreds of meters from the Lebanese border and took about two and a half years to build. The ongoing war in the north caused significant delays in its completion.
This represents one of the largest industrial investments in the region in recent years, aimed at increasing Zoglovec's production capacity and expanding its operations in the sausage category. The new factory utilizes automated production lines, minimizing human contact in the manufacturing and control processes, a technology reportedly used in only about 40 similar lines globally. This automation is expected to enable the company to gradually increase production volumes, maintain product consistency, and broaden its range of sausages, with a focus on premium products experiencing growing demand in Israel.
The construction faced unusual challenges due to its proximity to the northern border. Zoglovec stated that the war delayed the project by about a year and a half, primarily due to difficulties in bringing in technicians and engineers from abroad needed to install and operate the specialized machinery. Travel warnings and restrictions from countries like the United States also complicated the arrival of these professionals.
The investment comes at a time of renewed interest in the Israeli sausage market, both in retail and the restaurant industry. According to Storenext data, chilled sausage sales in retail chains reached approximately 193 million shekels in the first nine months of 2026, projecting an annual rate of about 257 million shekels. Zoglovec is the leading player in the chilled sausage category, holding about a 42% market share.
Zoglovec Chairman Zion Balas stated that the decision to complete the 120 million shekel investment in Shlomi, so close to the border and during a complex period for the north, reflects the company's long-term commitment to the region and its employees. He noted that employees, suppliers, and partners continued to advance the project under difficult conditions. The factory's completion is part of broader changes at Zoglovec since the investment firm AP Partners acquired a controlling stake in August 2025. The company has also been expanding internationally, recently acquiring a 70% stake in a Thai factory specializing in meat alternatives.
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