Fazer is bringing xylitol production back to Finland, investing €40 million building a xylitol manufacturing facility in Lahti using oat hull as the raw material. Utilising the side stream of the oat milling process with state-of-the-art technology for xylitol production is, the company says, a great example of a modern circular economy innovation. The xylitol market is expected to grow, Fazer believes, and the company is targeting Northern Europe and beyond with this plant-based raw material of Finnish origin.

"We have at hand an innovation wher we combine patentable new technology, healthier options to consumers and an excellent example of an innovative circular economy solution. We believe that xylitol from a plant-based Nordic raw material with a Nordic origin will create interest also outside Finland and the Nordic countries, even globally. We plan to expand the xylitol production to our mill in Sweden, too. Im proud of this example of the fearless creativity at Fazer, and we are excited about the new opportunities ahead of us," said Christoph Vitzthum, President and CEO, Fazer Group.

Fazer is investing in the development of new production technologies and solutions. Producing xylitol from oat hulls is, it claims, a true innovation with totally new technology. The production process is said to be unique due to the raw material which, until now, has not been commercially utilised. Currently, oat hulls are used mainly for energy production.

The xylitol factory will be built next to Fazers oat mill on the Lahti site: The company says the factory will be the first fully backward integrated xylitol manufacturing facility in the world capable of producing many forms of xylitol, supporting the market needs of the food, cosmetics and pharmaceutical industries.