AAK Investing In Brazil With New Edible Oils Factory
18 Feb 2014 --- AAK will initiate construction of a new speciality and semi-speciality edible oils factory in Jundiai, São Paulo, Brazil.
“There is a large potential for AAK in the Brazilian market. It is the world´s 7th largest economy and a number of our global customers already have significant presence. Currently AAK has a well-established Chocolate & Confectionery business supplying out of our factory in Montevideo, Uruguay. However, pursuing our global growth strategy, AAK needs to be present with production capability also in Brazil. This new factory is an integral part of AAKtion, and adds presence in a growth market which is identified as strategically important”, says Arne Frank, President and CEO, AAK Group.
The investment is expected to be approximately SEK 400 million over a two-year period. The start-up of the new factory is planned for the latter part of 2015 and fully utilized it will increase AAK´s total capacity by 100,000 to 120,000 MT.
“The new factory will expand our product portfolio of Food Ingredients and Chocolate & Confectionery products in Brazil and particularly strengthen our ability of supplying Bakery and Dairy solutions as well as further develop our Chocolate & Confectionery business. The new factory will also include an Innovation Center which will give our customers the possibility to work closely with AAK´s Customer Innovation team when developing new products and solutions”, says Edmond Borit, Managing Director AAK South America.
Earlier this month the company reported record high operating profit in the fourth quarter 2013, driven by the continued significant recovery in Chocolate & Confectionery Fats.
“Based on AAK’s customer value propositions for health and reduced costs, our customer product co - development and solutions approach, we continue to remain prudently optimistic about the future. The main drivers are the continued positive underlying development in Food Ingredients and the continued improvement in Chocolate & Confectionery Fats,” the chairman said in a statement.
Also last year, AAK strengthened its position in Turkey by acquiring Unipro from Unilever. Unipro is a leading supplier of oils and fats to the Industrial and Bakery markets in Turkey and the surrounding region. Founded in 1990 and located in Istanbul, Unipro employs approximately 37 people and had revenues of approximately SEK 700 million in 2012 and approximately 50,000 tons of annual deliveries.
The acquisition of Unipro includes ten established brands, a core managment and sales organization, all related know-how and the Unipro company name for Bakery and Industrial fats. In connection with the acquisition, AAK has entered a five year toll manufacturing agreement with Unilever relating to the supply of Unipro products. The impact of this acquisition on AAK’s 2013 operating profit is expected to be limited.
The average number of employees at 30 September 2013 was 2,209 (2,211 on 31 December 2012). The reduction related to the ongoing restructuring of the UK operations was offset by addition of employees in growth markets as well as the acquisition of Unipro.
