March 6, 2019

1 Min Read
Firm to Build $45M Plant for Oat-Based Xylitol in Europe
Finnish firm Fazer Group is building a new plant that will process oat hulls into an artificial sweetener. Image courtesy of Pixabay

Finnish food company Fazer Group announced plans Tuesday to invest €40 million, or about $43.2 million, to construct a new manufacturing plant in Lahti, Finland that will process oat hulls generated from the firm’s oat milling operations into the artificial sweetener xylitol. 

“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,” the firm’s chief executive officer and president, Christoph Vitzhum said in a press release announcing the project. “We plan to expand the xylitol production to our mill in Sweden, too.”

The company also intends to invest in the development of new production technologies for the Lahti site, as its process to manufacture xylitol from oat hulls requires new types of machinery. Products produced at the plant will be used in the food, cosmetics, and pharmaceutical markets.  

Xylitol, used as a substitute for sugar, is commonly used in chewing gum and confectionery products, but can be used in an array of applications. 

About 30 new jobs are expected to be created as a result of the company’s investment. 

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