Swiss chemicals company Jungbunzlauer has kicked off construction of a C$200m ($149m) xanthan gum production plant at its Canadian site in Port Colborne, Ontario.
The first phase of the expansion is expected to be operational from spring 2026 and produce readily biodegradable xanthan gum, a thickening agent with a wide range of cosmetic, culinary and pharmaceutical uses.
In cosmetics, xanthan gum enhances texture, improves viscosity and stabilises emulsions in a broad variety of products.
Phase 1 of the expansion is expected to create up to 50 new, high value jobs in Port Colborne, increasing the Jungbunzlauer workforce by 30%; subsequent phases in the coming years will add additional high value jobs.
Over the next 5-10 years, it is estimated 300 construction jobs will be created.
The new facility is expected to leverage the agricultural richness of the local Niagara region, sustainably sourcing local Ontario corn and incorporating advanced wastewater recycling systems.
The plant will utilize natural fermentation technologies to further reduce its environmental footprint.
The site uses electrical evaporation and hot water recovery systems with heat pumps re-use energy and reduce the overall use of natural gas.
In addition, the facility is connected to Jungbunzlauer's nearby corn wet milling plant, reducing transportation energy and enhancing sustainability credentials
The Port Colborne expansion, which is part-funded by C$4.8m from the Invest Ontario Fund, will increase Jungbunzlauer’s capacity to provide high quality xanthan gum to customers throughout North America.
“This expansion in Port Colborne marks a significant milestone for our North American business,” said Jungbunzlauer CEO Bruno Tremblay.
“This site not only reinforces our commitment to providing our partners with top-quality, natural biogums but also highlights our dedication to sustainability and to the local community,” he added.
