Jungbunzlauer Invests $200 Million to Build First Biogum Plant in Canada

Jungbunzlauer, a producer of high-quality sustainable natural ingredients, is breaking ground on its first xanthan gum plant in Canada, which will add another $200 million to the company’s existing facility in Port Colborne, Ontario.

Jungbunzlauer announced the groundbreaking of the first phase of the multi-year project, which is supported by $4.8 million from the Ontario Investment Fund.

"This expansion in Port Colborne is a significant milestone for our North American operations," said Bruno Tremblay, CEO of Jungbunzlauer. "This facility not only reinforces our commitment to providing our partners with top quality natural bio-based gum, but also highlights our commitment to sustainability and the local community."

The groundbreaking ceremony was also attended by plant director Ryan Doell and dignitaries from local, provincial and national governments, including Ontario Premier Doug Ford, Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli, Niagara South MLA Vance Badawey, Niagara West MLA Sam Oosterhoff and Mayor William Steele.

"We have been a proud member of the Port Colborne community for more than 20 years. During that time, we have invested $560 million in our local facility to expand capacity and improve sustainability. Looking ahead to the next decade, we expect to continue to make significant investments in capacity, sustainability and the community. "In addition to capital investment, our facility's job creation, services provided and local sourcing add approximately $20 million per year to Port Colborne's economy," said Tremblay.

The first phase of the expansion is expected to be operational in spring 2026 and will produce readily biodegradable xanthan gum, a thickening agent with a wide range of culinary, cosmetic and medicinal uses. The expansion in Port Colborne will increase Jungbunzlauer's ability to provide high-quality xanthan gum to customers throughout North America.

The expansion underscores Jungbunzlauer's commitment to growing its North American presence and commitment to carbon neutrality and sustainability.

"Jungbunzlauer's expansion makes it very clear that multinational companies seeking to establish a strategic foothold in North America will find Ontario to be the best place to invest," said Michael Fedchyshyn, interim CEO of Invest Ontario.

"I would like to express my deepest gratitude to everyone who has put their hard work and dedication into this expansion project, and a special thank you to the City and people of Port Colborne and Invest Ontario for their support," Tremblay concluded.