Raisio invests US$50m in plant-based value added products facility

FINLAND – Raisio Group is investing approximately €45 million (about US$50 million) in building a production facility to manufacture plant-based value added products.

The facility is scheduled to be completed in 2021 and will complement the food company’s oat mill production capabilities.

The company has already invested €8 million (US$8.9 million) in expanding its oat mill located in Nokia, Finland as the company continues to build its international oat business activities.

Raisio says that the investment in oat mill facility will provide ingredients that are needed by the new production facility rising in Raisio’s industrial area.

“While our short-term growth expectations are focused, in particular, on the export of oat products to industrial customers, our overall strategic goal is to further build our Elovena brand in a way that will draw greater interest from international consumers,” states Pekka Kuusniemi, President and CEO of Raisio Plc.

With the expansion of the oat mill, Raisio says that it is ready to respond to the growth in international demand of oats and will facilitate the export of Finnish oat products and manufacturing of value-added products.

The strategic investment is also part of Raisio’s strategy to increase its oat business to form another strong international pillar alongside its Benecol business.

“Thanks to the investments, our oat mill is now in top working condition,” states Pekka Kuusniemi, President and CEO of Raisio Plc.

“We increased the mill capacity and our ability to manufacture different oat products to meet the growing demand in Finland and Europe. The oat boom is just beginning in Europe now, so the growth perspectives are quite interesting.”

As a result of the long-term development of Raisio’s production, the company will have the capability to, among other things, produce gluten-free oat products at its mill in Nokia from the beginning of 2020.

The company plans to introduce the first Elovena Gluten-free products manufactured at the mill in Nokia into the market around the end of January or beginning of February 2020.

Furthermore, Raisio’s noted that its oat mill can now also produce oat fibre products with a high beta-glucan content. Beta-glucan is an oat fibre that helps to reduce cholesterol and prevent fluctuations in blood sugar levels.

Pekka Kuusniemi further explains; “We have invested in the production of our gluten-free oat products so that we can accelerate the export of quality Finnish foods in a competitive manner.

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