Finland-based food business Fazer Group has announced it is to invest EUR30m (US$33.1m) in its oat milling business.
The move will double its milling capacity in Lahti, Finland, and Lidköping, Sweden.
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The company said: “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.”
Christoph Vitzthum, the company’s president and CEO, said: “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.”
The investment will be equally divided between the mills in Finland and Sweden. Fazer will build two new mills at existing sites.
Earlier this year, Fazer announced an investment in a xylitol production facility, making xylitol from oat hulls. The factory, which will be located next to the mill in Lahti, will, Fazer suggested, “be the first fully backwards integrated xylitol factory and it will use state-of-the-art technology”.
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By GlobalDataFazer said it will also continue research in oats and oat ingredients, working more closely with external parties, such as universities, research networks and start-ups.
