The expansion is part of a larger $100 million investment in additional capacity for the company’s Speciality Food Ingredients division that first was announced in May 2014. With the expansion, Tate & Lyle said it now has increased capacity at the plant more than tenfold since acquiring it as part of its acquisition of Biovelop in May 2013.
Tate & Lyle’s operations at the Kimstad plant involve a chemical-free patented manufacturing process that the company uses to transform locally sourced Swedish oats into high value ingredients such as PromOat Beta Glucan and PrOatein Oat Protein. The ingredients then are used in a wide variety of foods and beverages, including breakfast cereals, smoothies, baked foods, bars and sports shakes. Tate & Lyle also makes Avenacare Oat Beta Glucan, which is used in the personal care and cosmetics industries.
“We continue to see growing demand for oat ingredients across the world as consumers look for healthier and tastier foods,” said Joan Braca, president of Speciality Food Ingredients at Tate & Lyle. “Through the expansion of our facility in Sweden, and our deep formulation expertise, we will be able to help our customers develop more products with health-benefit claims and functional benefits.”
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| Henrik Schmidt, vice-president and general manager of oat ingredients at Tate & Lyle. |
Henrik Schmidt, vice-president and general manager of oat ingredients at Tate & Lyle, added that the expansion at the facility in Kimstad has brought “significant” benefits to the local community.
“The number of employees at the facility has more than doubled since 2013 and many local companies have been used to deliver the expansion and provide supplies and services,” Schmidt said. “We would like to thank the local authorities for their support of this project and we look forward to our continued relationship with them.”
