Jungbunzlauer invests CAD 200m to build Canada's first xanthan gum facility

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Jungbunzlauer invests CAD 200m to build Canada's first xanthan gum facility

Rafaela Sousa

25 September 2024

Ingredients

Jungbunzlauer invests CAD 200m to build Canada's first xanthan gum facility

Jungbunzlauer, a producer of sustainable ingredients from natural sources, has invested CAD 200 million (approx. 148 million) to build Canada’s first xanthan gum facility in Port Colborne, Ontario.

The project is supported by CAD 4.8 million (approx. $3.54 million) from the Invest Ontario Fund.

The first phase of the facility is expected to be operational by spring 2026, producing biodegradable xanthan gum, a thickening agent used in various industries, including food, cosmetics and pharmaceuticals. The expansion will boost Jungbunzlauer’s capacity to provide high-quality xanthan gum to customers across North America.

The company noted that the expansion highlights Jungbunzlauer's dedication to strengthening its presence in North America while reinforcing its commitment to carbon neutrality and sustainable practices.

Bruno Tremblay, Jungbunzlauer CEO, said: “This expansion in Port Colborne marks a significant milestone for our North American business. This site not only reinforces our commitment to providing our partners with top-quality, natural biogums but also highlights our dedication to sustainability and to the local community."

He continued: “We've been a proud part of the Port Colborne community for more than 20 years. In that time, we’ve invested CAD 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."

"On top of our capital investment, the jobs, services and local purchases from our facility add approximately CAD 20 million to Port Colborne’s economy every year.”

Michael Fedchyshyn, interim CEO for Invest Ontario, added: “Jungbunzlauer’s expansion shows very clearly that international companies looking for a strategic foothold in North America will find Ontario is the best place to invest".