Lantmännen Agroetanol investing SEK 800 million in "Green Proteins"
In Sweden, ethanol producer Lantmännen Agroetanol AB, part of the Lantmännen Group, has announced that it will invest SEK 800 million (≈ EUR 79 million) in its Norrköping ethanol biorefinery to strengthen its position in "Green Proteins" grain-based food ingredients as well as complement the existing production of sustainable crop-based biofuels, green carbon dioxide (CO2), and animal feed.
The market for vegetarian and vegan foods continues to grow rapidly while both consumers and retails also request larger amounts of Swedish products. The investment in gluten production at the facility in Norrköping is an important step to meet this increased demand as the gluten ingredient has many important applications – for example in bakery and food production.
We see a growing demand for green proteins from both our existing customers and the market in general. With this investment, we are building our third factory in Sweden where we refine grain into food ingredients, thereby confirming our leading position in the Nordics. We have the competence and the resources to scale this growing business while responding to the sustainability challenges that we ourselves, our customers and society as a whole are facing, said Martin Engström, Business Manager at Lantmännen Agroetanol.
Lantmännen Agroetanol’s SEK 800 million investment will result in a considerable expansion of the operations in Norrköping. The investment includes both an expansion of the existing mill and storage silos, the installation of new production lines for the separation of gluten proteins, and drying equipment, as well as a large packaging and storing facility.
The project is expected to be finished in 2023, and fully operational by the second quarter of 2023.
This investment will generate an increase in net sales for our business that in the long run will benefit our owners, Swedish farmers – in part by significantly increasing the value of the grain farmers deliver to the factory. Additionally, the investment is part of the strategic development where we by expanding our business in Norrköping meet increased demand for sustainable products, both nationally and abroad, said Lars-Gunnar Edh, Head of Lantmännen Biorefineries and CEO Lantmännen Agroetanol.
The biorefinery in Norrköping delivers products to customers on both the Swedish and international markets.