AAK to invest $56.34m in China factory

Sweden-based producer of high value-added speciality vegetable oils and fats solutions AAK will construct a speciality and semi-speciality edible oils factory in China.

The company will invest about $56.34m over a two-year period in the construction of the factory, which will be built in Zhangjiagang along the Yangtze river delta. This region has the highest GDP per capita in China.

AAK group president and CEO Arne Frank said: "There is a significant potential for AAK in China and this new factory is an integral part of our company program AAKtion.

"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."

Work on the factory will start at the beginning of 2016 and will increase the company’s capacity by about 100,000 MT, with scope for further expansion.

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

AAK Asia, CIS and Middle East president Torben Friis Lange said, "This investment will make it possible for us to execute our strategy and grow our speciality oils and fats business in China with an increased customer service and more innovative co-developed products that address global as well as local trends.

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