Jungbunzlauer invests $200 million to build Canada’s first xanthan gum manufacturing facility in Ontario

Invest Ontario supports Jungbunzlauer’s expansion in Port Colborne, strengthening Ontario’s food supply chain and competitiveness in North American food manufacturing

PORT COLBORNE, Ontario, September 24, 2024 – Invest Ontario is supporting a $200 million investment by Jungbunzlauer, a leading producer of high-quality, sustainable ingredients from natural sources, to build Canada’s first xanthan gum manufacturing facility in Port Colborne, Ontario.

The expansion will create 50 high-paying jobs, representing a 30% increase in Jungbunzlauer Canadian workforce. The increased capacity will allow Jungbunzlauer to meet increasing demand for xanthan gum in North America, decreasing reliance on international imports. With proximity to the US market, this expansion benefits from Ontario’s strategic location for international companies looking to expand in North America.

Subject to reaching a definitive agreement, the Invest Ontario Fund will support the investment with a $4.8 million grant, reflecting its strategic importance in bolstering North American capacity, allowing businesses in both the US and Canada to meet their growing need for a critical ingredient in food and beverage manufacturing from Ontario.

Today marks a significant milestone for our North American business as we expand our Ontario facility here in Canada. This site not only reinforces our commitment to providing our partners with top-quality, natural bio-gums but also highlights our dedication to sustainability. I want to extend my deepest gratitude to everyone whose hard work and dedication made this expansion possible and a special mention to the City and people of Port Colborne, and Invest Ontario for their support.

Bruno Tremblay

CEO Jungbunzlauer

The Port Colborne site will produce a high quality, food grade xanthan gum used to improve texture and thickness in plant-based foods, toothpaste, oil-based salad dressings, cosmetics, cleaners and more. Xanthan gum serves as an ecologically responsible alternative that uses sustainable and renewable resources. This expansion is part of the company’s strategy to grow their natural bio-gums and expand their support for North American customers.

Thank you to everyone at Jungbunzlauer for your continued confidence in Port Colborne, Ontario workers and our province’s growing manufacturing sector. Our government was proud to support this investment as part of our plan to keep rebuilding Ontario’s economy, including our manufacturing sector, and bringing back better jobs with bigger paycheques for the workers of our province.

Hon. Doug Ford

Premier of Ontario

Ontario is the manufacturing powerhouse of Canada with 20,000+ advanced manufacturing firms and 800,000+ manufacturing workers. With growing demand and limited xanthan gum supply, this investment addresses a gap in the North American market and up-values Ontario grown corn into a premium priced product.

By lowering the cost of doing business in the province by $8 billion a year, we’re showing the world that Ontario is a top jurisdiction for multinational manufacturers to invest and expand their operations. We welcome Jungbunzlauer’s investment in Port Colborne, and thank them for their continued commitment to their talented workers.

Hon. Vic Fedeli

Ontario’s Minister of Economic Development, Job Creation and Trade

Headquartered in Basel, Switzerland, Jungbunzlauer has been operating for over 150 years and employs nearly 1,400 people across four major manufacturing plants in Austria, Germany, France and Canada and offices in the US, Mexico, Japan, France, The Netherlands, Austria, Germany, India, and Singapore.

Jungbunzlauer currently employs 165 people in a nearly 50,000 sq ft facility in Port Colborne and will engage with local universities and colleges to expand their co-op and research opportunities. Ontario’s skilled workforce is one of the leading factors for expanding their operations here.

Jungbunzlauer’s expansion demonstrates that international companies who are looking for a strategic foothold in North America will find Ontario is the best choice. As a trusted partner to business, Invest Ontario continues to focus on transformative investments that boost Ontario’s supply chains and strengthen its economic resilience.

Michael Fedchyshyn

Interim CEO, Invest Ontario

Invest Ontario employs a sophisticated evaluation process to identify and support investment projects that strengthen advanced manufacturing in Ontario across automotive, aerospace, advanced materials, chemical and food manufacturing sectors while bringing more high-quality, well-paying jobs to the province. Invest Ontario actively seeks investments that enhance Ontario’s supply chains with new capabilities and customers, delivering economic growth and benefits for all.

For more information about Invest Ontario, please visit www.investontario.ca.