22 November 2019 | News
The investment, 30 M€ in total, will be equally divided between the mills in Lahti, Finland and Lidköping in Sweden
image credit- healthcatalyst.com
Fazer Group continues executing its future-oriented growth strategy and invests in healthy and sustainable Nordic oats. Fazer will invest over 30 M€ in its milling business, doubling the milling capacity in Lahti, Finland and in Lidköping, Sweden. The global demand for oats is growing rapidly and, with this strategic investment, Fazer is executing its agenda of becoming the leading plant-based player in Northern Europe.
Fazer is transforming into a modern sustainable food company with a joint direction and continues executing its ambitious growth strategy, positioning itself as the leading plant-based player in Northern Europe. Fazer places the consumer first by focusing on its fast-moving consumer goods and direct-to-consumer businesses.
The investment, 30 M€ in total, will be equally divided between the mills in Lahti, Finland and Lidköping in Sweden. Fazer will build two new mills, which will double the current oat milling capacity of the company. Once the expansions have been finalised, Fazer will be number one in oats in the Nordic countries and one of the leading players in Europe.
The investment in oat milling capacity now announced is a lead in Fazer’s ambitious growth strategy, focusing on innovation and sustainable solutions. Earlier this year, Fazer announced a historic investment in a xylitol production facility making xylitol from oat hulls. The factory, which will be located next to the mill in Lahti, will be the first fully backwards integrated xylitol factory and it will use state-of-the-art technology.
Fazer will also continue researching in oats and oat ingredients, following Fazer’s aim to accelerate innovations across categories and working more closely with external parties, such as universities, research networks and start-ups and leveraging on the strengths of its current research, development and innovation work. Recently, Fazer’s RDI work was recognised by the European Investment Bank (EIB), when EIB and Fazer signed a 40 M€ loan to be used for research and development activities, including the construction of the xylitol factory.
The investment in the oat milling capacity as well as the construction of the xylitol factory reflect Fazer’s ambitious sustainability agenda.