Zoglovec Opens New $32 Million Sausage Factory in Northern Israel Amid War
Translated & summarized from Globes by baba
Food manufacturer Zoglovec has inaugurated a new NIS 120 million ($32 million) sausage factory in Shlomi, near Israel's northern border with Lebanon. The project faced significant delays due to the ongoing war, with construction taking two and a half years. The state-of-the-art, automated facility aims to boost production and expand Zoglovec's premium sausage offerings, reinforcing its leading market position in Israel.
The story in 5 lines · by baba
- Zoglovec invested NIS 120 million ($32 million) in a new automated sausage factory in Shlomi, near the Lebanon border.
- The factory's construction was delayed by 18 months due to the war in northern Israel.
- The new facility aims to increase production capacity and expand Zoglovec's premium sausage offerings.
- Zoglovec holds a 42% market share in Israel's chilled sausage sector.
- The investment is part of Zoglovec's expansion under new ownership by AP Partners.
Food manufacturer Zoglovec has completed the construction of a new sausage factory in the northern Israeli town of Shlomi, with an investment of approximately NIS 120 million (about $32 million). The 2,000-square-meter facility is located just hundreds of meters from the Lebanese border and took two and a half years to build. The ongoing war in the north caused significant delays in its completion, with the company stating the conflict postponed the project by about 18 months, primarily due to difficulties in bringing in foreign technicians and engineers needed to install and operate the specialized machinery. This represents one of the largest industrial investments in the region in recent years, aimed at increasing the company's production capacity and expanding its operations in the sausage category.
The new factory features automated production lines that minimize human contact during manufacturing and quality control, utilizing advanced technology with approximately 40 similar lines globally. Zoglovec expects this automation to gradually increase production volumes, ensure product consistency, and broaden its range of sausages, with a focus on premium products experiencing growing demand in Israel. The investment comes at a time of renewed interest in the Israeli sausage market, with chilled sausage sales in retail chains reaching approximately NIS 193 million in the first nine months of 2026, projecting an annual pace of about NIS 257 million.
Zoglovec is the leading player in the chilled sausage market in Israel, holding a 42% market share, followed by Tirat Tzvi (27%) and Yechiam (13.5%), according to Storenext data. The company is also venturing into premium and boutique sausage offerings, including a collaboration with Chef Moshik Roth for new boutique sausages for his Tel Aviv restaurant, Frankco. "The decision to complete an investment of NIS 120 million in Shlomi, hundreds of meters from the border and during the complex period the North has been through, expresses our long-term commitment to the region and our employees," said Zion Balas, Chairman of Zoglovec. He added that employees, suppliers, and partners continued to advance the project under challenging conditions.
The factory's completion is part of Zoglovec's broader transformation since AP Partners acquired a controlling stake in August 2025. The investment fund's acquisition valued the company at approximately NIS 450 million. Zoglovec has also been expanding internationally, recently acquiring 70% of Plant & Bean in Thailand, which specializes in meat alternatives and plant-based products. Balas, formerly CEO of Strauss Israel and Global Strauss Coffee, now serves as active chairman, while Eli Zoglovec has moved to the role of President of International Operations. The Shlomi investment is a key component of expanding the company's production infrastructure in Israel while pursuing international growth.