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.

“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 CEO of Fazer Group.

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.

“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,” he continues.

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.

 

Fazer Mills in Finland

  • Located in Lahti, Finland
  • Established in 1971
  • Produces different kinds of grain products, such as flour and flake products and mixes for bakeries and the food industry, including value-added oat ingredients such as oat beta-glucan, oat protein and oat oil
  • Exports currently to approximately 30 countries
  • The largest mill in Finland, representing the highest professional expertise in the milling business
  • Employs currently ca 80 persons
  • Oat mill built in 2013, capacity doubled in 2016-2017
  • Over half of Fazer’s oat net sales come from export

Fazer Mills in Sweden

  • Located in Lidköping, Sweden
  • Established in 1981
  • Oat, wheat and rye products
  • High-quality products and healthy Frebaco Kvarn -branded organic products: muesli, porridge and breakfast cereals
  • Uses locally cultivated grain from the Västgötaslätten area
  • Employs currently ca 70 persons

 

Additional information:
Fazer media service +358 40 668 2998,  media@fazer.com