Cargill ramps up specialty fats production, breaking ground on US$35M facility expansion in Malaysia
08 Nov 2021 --- To meet growing customer demand for specialty fats, Cargill has begun construction on a RM 145 million (US$35 million) expansion of its production facility in Port Klang, Malaysia.
At the 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.
This is dubbed the first step in the agri-food giant’s multi-year investment expected to exceed RM415 million (US$100 million), which is aimed at significantly expanding the company’s global portfolio in specialty fats.
“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,” says Jennifer Shomenta, president and group leader for Cargill’s global edible oils solutions business.
Cargill’s Port Klang facility. (Credit: Cargill)“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.”
Site to be completed in 2023
The Port Klang expansion is expected to be complete in late 2023, when 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.
The newly announced project comes on the heels of a nearly complete RM83 million (US$20 million) upgrade to the facility, which began one year ago. This enhanced the site’s R&D capabilities and production capacity.
“Specialty fats are incredibly popular due to their versatility and functionality,” Shomenta comments.
“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.”
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.
Aligning with Malaysia’s economic targets
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.
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.
Starring ingredients
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, among 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. They also have been found to offer notable health benefits.
Derived from seed and tropical oils, specialty fats offer a wide range of attributes, from heat resistance to quick meltdown for enhanced flavor release.Depending on the degree of refining, certain specialty fats, such as palm oil, can be a natural source of beta-carotene and tocotrienols (vitamin E). Researchers from Malaysia and Libya recently found that tocotrienol-rich fractions extracted from palm oil can potentially improve liver health.
However, the sustainability credentials of such commodities have been repeatedly called into question, as Innova Market Insights data outlines that consumers today prioritize planetary health over personal health gains.
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).
Cargill’s Asia footprint
Today, Cargill’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.
The supplier has been conducting business in Malaysia since 1978. This latest investment in Port Klang aligns with its plans to expand its operational footprint across the Asia-Pacific region.
This year, 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.
In Singapore, Cargill recently made moves to acquire chocolate manufacturer Aalst, in an investment that expands the company’s Asia-Pacific cocoa and chocolate offerings and capitalizes on “tremendous” regional growth potential.
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.
Edited by Benjamin Ferrer
