Jungbunzlauer makes multi-million investment in Canadian biogum manufacturing site

26 Sep 2024 --- Swiss ingredient producer Jungbunzlauer is investing US$200 million in a “first-of-its-kind” facility in Ontario, Canada, for xanthan gum, a thickening and stabilizing agent derived from corn, soy, dairy or wheat. 

The multi-year project aims to strengthen the company’s presence in North America, create employment in the domestic market and push sustainability goals with US$4.8 million from the Invest Ontario Fund.

“We’ve been a part of the Port Colborne community for over 20 years. In that time, we’ve invested US$560 million into our local facility to expand capacity and improve sustainability. As we look ahead to the next ten years, we expect to continue to make significant investments in capacity, sustainability and the community,” says Bruno Tremblay, CEO of Jungbunzlauer.

“On top of our capital investment, the jobs, services and local purchases from our facility add approximately US$20 million to Port Colborne’s economy annually.”

The first phase of expansion is expected to begin in the first half of 2026. It will enable the production of readily biodegradable xanthan gum, an ingredient with multiple uses across the culinary, cosmetic and pharmaceutical industries.

The company expects the facility will create 50 “high-value” jobs in the region.

Improved sustainability credentials

Jungbunzlauer aims to advance its carbon neutrality and sustainability initiatives at the facility.

The expansion is designed to improve Jungbunzlauer’s portfolio without increasing its carbon footprint. The plant will be part of its overall carbon-neutral site.

The F&B firm plans to tap the agricultural value of the Niagara region by sustainably sourcing locally-grown corn and integrating wastewater recycling systems into the facility.

The plant will use natural fermentation technology to reduce its impact on the environment. It will also use electrical evaporation and hot water recovery systems with heat pumps that reuse energy and lower the usage of natural gas in operations.

Jungbunzlauer says the facility is linked to its corn wet milling plant in the area, which enables reduced transportation energy and improved sustainability credentials.

The supplier’s Port Colborne site currently produces citric acid and special salts.