AAK investing in new edible oils factory in eastern China

By RJ Whitehead

- Last updated on GMT

Related tags Shanghai

Edible oils major AAK will make a significant investment in China for a speciality and semi-speciality edible oils factory in Zhangjiagang, Jiangsu province. 

The company identified the Yangtze delta city for the SEK400m (US$56.4m) project on account of its growing role as an distribution centre for wider China. The new factory is expected to open at the start of 2016, providing AAK with production capacity of around 100,000 tonnes of edible oils, although this could expand over time.

There is a significant potential for AAK in China​,” said Arne Frank, the company’s 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​.”

Regional president Torben Friis Lange added that the new factory would give AAK the ability to grow its speciality oils and fats business in China while also helping it to co-develop more innovative products over a wide range of applications. 

Fully utilised, the plant will be able to serve our bakery, dairy, infant nutrition, and chocolate and confectionery fats segments​.”

The factory is part of the company’s long-term investment plan for its China operations that began with the establishment of an AAK sales subsidiary in 2011, and which was followed by the opening of an innovation centre in Shanghai last year.

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