Port Colborne is set to become home to Canada's first-ever xanthan gum facility.
Jungbunzlauer, or JBL, will be making a $200 million investment to expand its existing facility in Port Colborne, which will create 50 new jobs.
Xanthan gum has many industrial uses, including being used as a common food additive by thickening and stabilizing ingredients.
"This fermented sugar is used to thicken and stabilize products across sectors such as food and beverages, health care, animal feed, personal care, detergents and various industrial applications."
Ontario Premier Doug Ford made the announcement in Port Colborne today, alongside Niagara West MPP Sam Oosterhoff and Port Colborne Mayor Bill Steele.
Ford says Ontario will support the investment with $4.8 million in funding through the Invest Ontario Fund.
“Thank you to everyone at Jungbunzlauer for your continued confidence in Port Colborne, Ontario workers and our province’s growing manufacturing sector,” said Premier Doug Ford. “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.”
JBL is the only producer of xanthan gum in Canada.
“We've been a proud part of the Port Colborne community for more than 20 years. In that time, we’ve invested $560 million into our local facility to expand capacity and improve sustainability. As we look ahead to the next ten years, we expect to continue to make significant investments in capacity, sustainability and the community. On top of our capital investment, the jobs, services and local purchases from our facility add approximately $20 million to Port Colborne’s economy every year,” Bruno Tremblay, Jungbunzlauer CEO.
It’s expected that the project will increase the demand for Ontario-grown corn, creating spin-off effects across the supply chain.
“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,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We welcome Jungbunzlauer’s investment in Port Colborne and thank them for their continued commitment to their talented workers.”
In the spring it was announced that Port Colborne will be home to Canada's first ever EV battery separator plant.
Japan's Asahi Kasei is building a 1.6 billion dollar plant, which is set to start production in 2027.
