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Asia Pacific: AAK to build edible oils factory in China

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AAK has decided to construct a speciality and semi-speciality edible oils factory in China.

The factory will be located in Zhangjiagang along the Yangtze river delta, which is northwest of Shanghai.

“There is a significant potential for AAK in China and this new factory is an integral part of our company program AAKtion”, says Arne Frank, president and CEO.

“China is moving from an export driven economy model to also a very strong, domestic and consumption driven economy. With a fast growing economy the demand for speciality and semi-speciality edible oils in China is expected to grow strongly.”

The investment is expected to amount to approximately SEK 400 million over a two-year period. The start-up of the new factory is planned for the beginning of 2016 and fully utilized it will increase AAK’s total capacity by approximately 100,000 metric tons, with room for further expansion at a later stage.

“Fully utilized, the plant will be able to serve our bakery, dairy, infant nutrition and chocolate and confectionery fats segments,” says Torben Friis Lange, president Asia, CIS, Middle East.

The construction of the factory is part of a long-term investment plan in China that started with the establishment of an AAK sales subsidiary in 2011, which was followed by the opening of an innovation center in Shanghai last year.