Zoglovek Completes 120 Million NIS Sausage Plant in Shlomi Despite Wartime Delays
Zoglovek completed a new 120 million NIS sausage plant in Shlomi near the northern border, overcoming wartime delays to boost high-tech production and expand its market leadership.
Zoglovek has completed the construction of a new sausage manufacturing plant in Shlomi, with an investment of approximately 120 million NIS. Spanning about 2,000 square meters and located just hundreds of meters from the Lebanese border, the facility took nearly two and a half years to build, with the ongoing war in the north causing significant delays. This project represents one of the largest industrial investments in the region in recent years, designed to boost the company's production capacity and expand its presence in the sausage category.
Advanced Automation and Production
The new facility relies on automated production lines that enable manufacturing and quality control without human intervention. According to Zoglovek, this advanced technology is utilized by only about 40 similar production lines worldwide. The automation is expected to allow the company to gradually scale up output, maintain product consistency, and broaden its assortment of sausages, with a strong emphasis on premium items, the demand for which has grown steadily in the Israeli market.
Construction took place under extraordinary circumstances due to the proximity to the northern border. The company noted that the war delayed the project by roughly a year and a half, primarily due to difficulties in bringing in foreign technicians and engineers required to install and commission specialized machinery. Travel warnings and restrictions imposed by various countries, including the United States, complicated the arrival of professionals to the area.
Market Dynamics and Growth
The investment arrives as the cold cuts and sausage market in Israel experiences renewed interest across both retail chains and the restaurant sector. According to Storenext data, sales of chilled sausages in retail chains totaled approximately 193 million NIS during the first nine months of 2026, translating to an annualized pace of about 257 million NIS. These figures exclude sales in restaurants, food stands, and convenience stores.
Zoglovek remains the dominant player in the chilled sausage category within the retail market, holding a financial market share of approximately 42%, compared to 27% for Tirat Zvi and 13.5% for Yechiam, based on Storenext figures. In recent years, the category has expanded into higher-priced goods as manufacturers seek to increase consumer spending through varied styles and boutique positioning.
"The decision to complete a 120 million NIS investment in Shlomi, hundreds of meters from the border and during the complex period the north has experienced, demonstrates our long-term commitment to the region and our employees," stated Zion Balas, chairman of Zoglovek.
Strategic Changes and International Expansion
The completion of the plant coincides with corporate transformations at Zoglovek following the entry of the investment fund AP Partners in August 2025. The fund acquired a controlling stake in the company based on a valuation of roughly 450 million NIS, and over the past year, Zoglovek has begun broadening its activities beyond Israel. In August, the company announced the acquisition of a 70% stake in Plant & Bean in Thailand, a manufacturer specializing in plant-based meat alternatives.
