Construction at Malaysia facility kicks off RM415 million (US$100m) investment
KUALA LUMPUR, Malaysia, Nov. 8, 2021 /PRNewswire/ -- To meet growing customer demand for specialty fats, Cargill has started construction on a RM145 million (US$35 million) expansion of its production facility in Port Klang, Malaysia. This is the first step in a global, multi-year investment expected to exceed RM415 million (US$100 million) aimed to significantly expand the company's global portfolio in specialty fats.
"Specialty fats are incredibly popular due to their versatility and functionality," said Jennifer Shomenta, president and group leader for Cargill's global edible oils solutions business. "With this investment, we'll be better positioned to support our customers' innovation journey, equipped with the building blocks necessary to co-create tailored solutions that align with their unique needs."
At the Malaysian facility, Cargill will install dry palm fractionation capacity, enabling the production of a range of specialty fats for use in chocolates, coatings, fillings and compounds, spreads, bakery fats, and other applications. Cargill will also further upgrade its Malaysia Edible Oils R&D Center, enhancing lab equipment and pilot plants to align with the Port Klang facility's new specialty fat capabilities.
The newly announced project comes on the heels of a nearly complete RM83 million (US$20 million) upgrade to the facility begun just one year prior, which enhanced the site's production capacity and completed a first round of updates to its R&D capabilities. The investment in the Port Klang facility aligns with the Malaysian government's policy encouraging palm oil downstream companies to further move up the palm value chain, positively impacting the economy and creating job opportunities.
Taken together, these two Port Klang projects are the first of what Cargill expects to be multiple investments, spread across its specialty fat production plants around the globe. The more than RM415-million initiative will thrust Cargill to the forefront of specialty fats production, with state-of-the-art facilities and a reliable, end-to-end sustainable supply chain.
"All too often, brands must navigate complicated supply chains to procure their specialty fats, purchasing oil from one supplier, then shipping it to others for further processing," Shomenta said. "Through our investments at Port Klang and across our global processing footprint, we'll eliminate those extra steps, giving customers the convenience of a single, trusted partner, all backed by Cargill's technical expertise and global resources."
The broad range of ingredients produced at Cargill's Port Klang plant will play starring roles in the sensory profiles of many products, contributing to their improved taste, texture and mouthfeel. Derived from seed and tropical oils, specialty fats offer a wide range of attributes from heat resistance, a key benefit for confections sold in warmer climates, to quick meltdown for enhanced flavor release amongst other functional attributes. The ingredients are also key to improving flavor profile, product stability and other sensory needs of customers in the rapidly growing meat and dairy alternatives market. Further, Cargill's responsibly sourced palm oil supply chain will make it possible for the company to offer specialty fats made from segregated palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO).
The Port Klang expansion is expected to be complete in late 2023, at which time Cargill will begin supplying finished specialty fats to customers throughout the Asia Pacific region, and semi-finished products to Cargill facilities in Europe, Middle East, Russia, South America and North America. This will enable the company to offer its expanded specialty fat range to customers in those regions as well, putting Cargill in a strong position to serve global and regional customers alike.
"This investment will position us to become a leading specialty oil solution provider by improving our capability to co-develop new solutions with customers and address key consumer trends," says Jonathan Yeo, regional strategy and innovation leader for Cargill's edible oil business in Asia.
Cargill has been conducting business in Malaysia since 1978. Today, the company's businesses include vegetable oil refining and production of value-added products, grain and oilseeds distribution, animal nutrition, sales of starches, sweeteners and texturizers as well as sales and marketing of cocoa and chocolate products. Headquartered in Kuala Lumpur, Cargill Malaysia currently employs about 710 people in seven locations countrywide.
The investment also aligns with Cargill's plans to expand its operational footprint across the Asia Pacific region. In 2021 alone, the company announced its intent to build a RM829 million (US$200 million) palm oil refinery in Indonesia and unveiled a new partnership with Nestle to support Indonesian cocoa farmers. Other investments in the region include support for sustainable coconut production through programs that engage smallholder farmers with training on good agricultural practices and develop community conservation commitments.
About Cargill
Cargill's 155,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive.
We combine 155 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture. For more information, visit Cargill.com and our News Center.
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