Jungbunzlauer CA$200M investment in Canadian biogum facility to produce xanthan gum
Jungbunzlauer invests CA$200 (US$148) million to build Canada’s first xanthan gum facility in Port Colborne, Ontario. The first phase of the multi-year project is expected to be operational by spring 2026.
The global producer of sustainable ingredient’s facility is supported by a CA$4.8 million (US$3.6) contribution from the provincial government’s Invest Ontario Fund.
The new plant will produce xanthan gum, a flexible thickening agent used in various industries. Jungbunzlauer says the new plant will help it meet sustainability objectives and growing demand throughout the continent.
Xanthan gum in personal care can be used as a binder, emulsion stabilizer, skin-conditioning agent, surfactant or viscosity-increasing agent.
Economic contribution and sustainability
Jungbunzlauer expects the facility to generate up to 50 new jobs in Port Colborne, expanding Jungbunzlauer’s local workforce by 30%. There will be 300 construction jobs created over the next five to ten years, which the company says will benefit the area long-term.
“We are proud to continue our commitment to the Port Colborne community,” says Jungbunzlauer CEO Bruno Tremblay. “This expansion marks a significant step in enhancing our capacity and sustainability efforts.”
“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 CA$20 (US$14.8) million to Port Colborne’s economy every year.” The company has already invested CA$560 (US$414) million in Port Colborne over the last 20 years.
The facility will prioritize sustainability by using corn grown locally in Ontario to lessen its environmental impact. To use as little energy and water as possible, it will use electrical evaporation, heat recovery pumps and natural fermentation processes.
Jungbunzlauer says the new features meet its goal of maintaining a carbon-neutral operation while increasing production of biodegradable ingredients.It also believes the investment shows the company’s commitment to sustainability and innovation in its North American operations.
CP Kelco also believes in microbial fermentation as a potential solution for driving the shift away from petroleum-based ingredients within the personal care industry. It researched a polysaccharide-producing bacteria used to produce diutan gum, gellan gum, xanthan gum and fermentation-derived cellulose. The company recently completed an expansion in production capacity for its citrus fiber product line.
