Fazer Builds Xylitol Manufacturing Facility
Fazer brings xylitol production back to Finland and builds a xylitol manufacturing facility in Lahti using hull as the raw material.
Utilizing the side stream of the oat milling process with state-of-the-art technology for xylitol production is a great example of a modern circular economy innovation. The xylitol market is expected to grow, and Fazer targets Northern Europe and beyond with this plant-based raw material of Finnish origin.
Fazer continues to develop its business and is investing EUR40m in an oat hull based xylitol manufacturing facility in Finland to enter the Xylitol market. The investment will strengthen Fazer’s position as a forerunner in value-added grain-based products. In Fazer’s oat milling process, a substantial amount of oat hulls are derived as a side stream. Oat hulls contain xylose which can be used to produce xylitol.
“We have at hand an innovation where we combine patentable new technology, healthier options to consumers and an excellent example of an innovative circular economy solution. We believe that xylitol from a plant-based Nordic raw material with a Nordic origin will create interest also outside Finland and the Nordic countries, even globally. We plan to expand the xylitol production to our mill in Sweden, too. I’m proud of this example of the fearless creativity at Fazer, and we are excited about the new opportunities ahead of us,” says Christoph Vitzthum, president and CEO, Fazer Group.
Fazer is investing in the development of new production technologies and solutions. Producing Xylitol from oat hulls is a true innovation with a totally new technology. The production process is unique due to the raw material which, until now, has not been commercially utilized. Currently, oat hulls are used mainly for energy production.
Fazer published the first news about the Lahti investment in January. The major investment will take place in 2019-2020. It will create 30 new jobs at Fazer in Lahti and also indirectly employ people. Works at the Fazer site in Lahti started in February 2019.
Sustainability is a constantly growing trend and consumers are increasingly interested in plant-based solutions. Fazer is developing its business and product portfolio with special focus on growth and consumer trends. Fazer’s aim is to transform into a modern sustainable food company. In line with the company strategy, Fazer targets further expansion in Northern Europe and beyond. The investment in Lahti supports this direction. The oat hull xylitol factory will be a part of the Fazer Lifestyle Foods business area.
During the past three years, Fazer has invested approximately EUR195m in total, of which EUR136m have been invested in Finland.