Fazer Group to Invest €30 Million in its Oat Milling Business
Fazer Group will invest over €30 million in its Nordic oats 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 aiming to grow in Northern Europe and beyond. Today’s conscious consumers value convenience and well-being, and Fazer’s growth is based on in-depth consumer insights turned into innovative products and meaningful food experiences. The superfood oats are booming worldwide and Fazer will leverage its knowledge in oats further,” says Christoph Vitzthum, president and chief executive of Fazer Group.
The investment, €30 million 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.
“Milling expertise and research and development related to oats will, in the future, become even more essential parts of Fazer’s strategical objectives. Doubling the capacity in both mills will also open for new employment opportunities,” says Christoph Vitzthum. “There is a fast-growing consumer demand for nutritious plant-based food produced from locally grown raw materials.”
The investment in oat milling capacity part of 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, reflecting its 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 million loan to be used for research and development activities, including the construction of the xylitol factory.
