New Innovation From Oats - Fazer Builds 40-million-euro Xylitol Factory in Lahti

New Innovation From Oats - Fazer Builds 40-million-euro Xylitol Factory in Lahti

PR Newswire

HELSINKI, March 5, 2019

HELSINKI, March 5, 2019 /PRNewswire/ -- Fazer brings xylitol production back to Finland and builds a xylitol manufacturing facility in Lahti using hull as the raw material. Utilising 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 40 million euros 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.

Plant-based products and solutions are strategic growth areas for Fazer

Fazer is investing in the development of new production technologies and solutions. Producing xylitol from oat hulls is a true innovation with totally new technology. The production process is unique due to the raw material which, until now, has not been commercially utilised. Currently, oat hulls are used mainly for energy production.

The xylitol factory will be built next to Fazer's oat mill on the Lahti site: The factory will be the first fully backward integrated xylitol manufacturing facility in the world capable of producing many forms of xylitol, supporting the market needs of the food, cosmetics and pharmaceutical industries.

The xylitol market is growing

Modern consumers are seeking healthier options to replace refined white sugar. Xylitol offers excellent potential for future product development.

The xylitol market is growing and Fazer aims to be the only xylitol manufacturer producing xylitol from a plant-based raw material with Finnish origin. Furthermore, xylitol is an important ingredient for Fazer's confectionery business - Fazer is the only company producing chewing gum in Finland.

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.

Fazer targets further expansion in Northern Europe and beyond

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 195 million euros in total, of which 136 million euros have been invested in Finland.

A few facts about xylitol

For interviews please contact:

Taina Lampela-Helin
Manager
Communications
Fazer Group
taina.lampela-helin@fazer.com
tel. +358-40-668-4600

Fazer's media phone line is open Mon-Fri from 8:00 to 16:00
tel. +358-40-668-2998
media@fazer.com

Fazer Group

In 1891, the young Karl Fazer opened his first café with a mission to make food with a purpose - and a passion to create moments of joy for all the people around him. It became Northern Magic. Made Real. Today, Fazer is an international family-owned company offering quality bakery, confectionery, biscuit and grain products, plant-based meals, non-dairy products, on-the-go food & drinks as well as food and café services. The Group operates in eight countries and exports to around 40 countries. The success of Fazer has been built on Karl Fazer's vision, values and fearless creativity: the best product and service quality, beloved brands, the passion of skilful people and responsible ways of working. In 2018, Fazer Group had net sales of 1.6 billion euros and more than 15,000 employees. Fazer's operations comply with ethical principles that are based on the Group's values and the UN Global Compact.

Northern Magic. Made Real.

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The following files are available for download:

https://news.cision.com/fazer-group/i/fazer-cv-lahti-press,c2585892

Fazer CV Lahti press

https://mb.cision.com/Public/964/2755883/a01b88d6dabc6e11.pdf

FG Lahti investment media release GB 20190228

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