Lantmännen Expands its Oats Capacity
Lantmännen, the Nordic region´s leader in agriculture, machinery, bioenergy and food products, has signed an agreement with Tate & Lyle, the UK-based global food and beverage ingredients and solutions provider, for the acquisition of a production facility in Sweden. The acquisition gives Lantmännen opportunities to expand its oats capacity and invest in additional processing of oats.
Lantmännen is acquiring an oat mill with a capacity of 55,000 tons and an oat ingredients manufacturing facility in Kimstad outside Norrköping. Oats is a key crop for Swedish agriculture and Lantmännen’s members. There is a big global interest in oats, a crop that offers several important health benefits, and demand for oat products is increasing sharply. This additional oats capacity will enable Lantmännen to meet the growing demand from customers in the Nordic food industry.
Per Olof Nyman.
“Oats are a strategic investment area for Lantmännen and the further development of our oats business is a key part of our ‘Field to Fork 2030’ strategy. We are already strongly positioned in oats and this acquisition gives Lantmännen access to a modern mill that complements our existing production capacity within oats and creates a unique opportunity to develop and manufacture ingredients based on oats as the raw material,” says Per Olof Nyman, chief executive and group president of Lantmännen.
Thanks to their high quality, oats from the Nordic countries have gained a strong standing in the world. Lantmännen is the Nordic leader in oats with three oatmeal mills in Sweden, Denmark and Norway, and is taking a long-term approach to investments in processing, research and innovation within oats. Lantmännen markets food and ingredients based on oats to the food industry and is a driving force in research and innovation to develop future oat products. Lantmännen pursues research both internally and via partners such as ScanOats in Lund and the partly owned Swedish biotech company CropTailor.
The agreement was signed on March 22 and the transaction is expected to be completed by end of March.
