Fazer, an international bakery, confectionery, lifestyle foods, food services and retail company, is developing an oat hull-based xylitol manufacturing facility in Lahti, Finland.
The factory is being constructed with an investment of €40m ($45m) in order to strengthen Fazer’s business in grain-based products.
A ground-breaking ceremony was held in May 2019, with construction scheduled to be completed by late 2020.
A sizable amount of oat hulls is obtained as a side-stream during Fazer’s oat milling process. The oat hulls contain xylose, which will be used to produce xylitol at the new factory.
It will be the first xylitol facility to receive raw material directly from the company’s own production plant and manufacture xylitol from oat hulls on such a large scale.
The factory will directly employ 30 people, while also creating indirect jobs.
Fazer xylitol factory details
Fazer’s xylitol factory will be situated at Petsamonkatu 5, Kasakkamäki, in Lahti, Finland. It will be constructed next to Fazer Mills and the Lahti bakery.
The new facility will span across 4,000m² and will be adjacent to a bio-heating facility that is being developed in the same area.
It will receive raw material for xylitol directly from Fazer’s production plant and will become the world’s first fully backward integrated xylitol manufacturing facility to produce xylitol in multiple forms.
The products manufactured by the facility have end-use in multiple industries, including food, cosmetic and pharmaceutical.
Preparatory works, such as the logging of timber and the removal of topsoil, began at the site in February 2019, while construction began in April 2019.
In addition to construction of the xylitol plant, other construction work will include building structures of the related auxiliary equipment, the area works and the expansion of the car park for the mill area. The site office, staff facilities, temporary parking spaces and fencing for the site are already completed.
The site can be accessed through a separate junction and also has its own access control and monitoring system.
The factory will utilise Fazer’s new, patented technology. The production equipment will be installed in late 2019.
Fazer’s bio-heating facility
Fazer’s new bio-heating facility will produce bioenergy for the xylitol production facility and Fazer’s bakery, mill and rye crisp production lines.
The heating facility will be fuelled from the side streams of the production, including the leftover oat hull mass after the xylitol production.
Fazer’s bioenergy-producing method supports the concept of a modern circular economy.
NCC Finland was awarded a €10.7m ($11.85m) project management contract.
RE-Suunnittelu was contracted for architectural design, heating, ventilation and air-conditioning (HVAC) design services.
Marketing commentary on Fazer
Fazer offers non-dairy products, plant-based meals and on-the-go food and beverages.
It is a family owned business with history dating back to the 1891 opening of the French-Russian café by Karl Fazer in Helsinki.
Fazer started producing chocolates and confectionery in 1894 and began industrial-scale manufacturing in 1897.
The company revised its sustainability approach in 2018 in alignment with the renewed brand positioning. The four goals chosen by the company to achieve its sustainability target include 50% less emissions, 50% less food waste, 100% sustainably sourced products and increased use of plant-based products.
Fazer employs more than 15,000 people across nine countries.
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