The investment will be used in expanding the capacity for receiving, storing and cleaning oats as well as on new equipment for heat-treating dehusked oat kernels at Kimstad facility
Swedish agricultural cooperative Lantmännen has announced its plans to invest SEK125m ($13.8m) in heat-treated oats to increase oats production capacity at its mill in Kimstad near Norrköping, Sweden.
The funding will be utilised to increase the capacity for receiving, storing and cleaning oats along with new equipment for heat-treating dehusked oat kernels in the facility.
The company said that the investment will strengthen its position in the market for oat products.
The dhusked and heat-treated oat kernels are used as input goods in various types of products such as food products.
Lantmännen Energy Sector head and chief operating officer Magnus Kagevik said: “This investment is important for Swedish agriculture and for the food industry in Sweden.
“The investment will reinforce Lantmännen’s unique position within the oats value chain– all the way from plant breeding and type development to high quality ingredients and products for both businesses and consumers on both the Nordic and international markets.”
Lantmännen will use funding to expand other refined products production at its Cerealia facilities
The funding will also be utilised to expand production of other refined products including rolled oats, at Lantmännen Cerealia facilities.
According to the company, the oat-based products provide growth potential, in existing segments including porridge oats, granola and muesli as well as in new market segments.
Lantmännen Cerealia Sweden managing director Karolina Valdemarsson said: “There are numerous interesting new segments and product areas that are rapidly being developed, such as those linked to the greater focus on health and wellness among consumers and increasing interest in plant-based foods. This investment will enable us to expand our total capacity.”
The company expects to start producing the heat-treated oats at Kimstad in March 2022.
Last year, the company purchased the oats business in Kimstad, now called as Lantmännen Oats, to expand its oats refining capacity.