CANADA – Jungbunzlauer, a Swiss chemicals firm, is currently constructing a C$200 million (US$148M) xanthan gum production facility at its site in Port Colborne, Ontario.
The first phase of this expansion is projected to be operational by spring 2026 and will focus on producing biodegradable xanthan gum, a thickening agent commonly used in the culinary and pharmaceutical sectors.
Upon completion of the first phase, the company anticipates creating approximately 50 new, high-value positions, which would represent a 30% increase in its workforce in Port Colborne.
Additional phases planned for the future are expected to generate more high-value employment opportunities.
Over the next five to ten years, around 300 construction jobs are expected to be generated as part of this development.
The new facility aims to utilize the agricultural advantages of the Niagara region by sourcing local Ontario corn sustainably. It will also feature advanced wastewater recycling technologies.
Natural fermentation processes will be employed to minimize the plant’s environmental impact.
Furthermore, the site will incorporate electrical evaporation and hot water recovery systems, with heat pumps designed to repurpose energy and lower the consumption of natural gas.
In addition, the new plant will be directly linked to Jungbunzlauer’s existing corn wet milling facility, which is expected to cut down on transportation energy and improve sustainability efforts.
Xanthan gum, a polysaccharide, is widely used in various industrial applications, including as a food additive, due to its effectiveness as a thickening and stabilizing agent.
It is frequently used in salad dressings and sauces to maintain the stability of emulsions, preventing oil from separating, even though it is not classified as an emulsifier.
Additionally, it aids in suspending solid particles, such as spices, within these mixtures.
In ice creams, xanthan gum contributes to achieving the desired texture, enhancing the overall product quality.
The company aims to capitalize on the market demand for this ingredient, which saw the Asia Pacific region holding a 39% market share in 2021.
North America and Europe accounted for approximately 30% and 20% of the market share, respectively, during the same period.
The pharmaceutical industry’s growth in Europe has been a significant factor in expanding this market.
The xanthan gum sector, valued at US$0.6B in 2022, is expected to grow from US$0.62B in 2023.
The powdered variant of xanthan gum is projected to command a global market share of 84.2% in 2023.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
