AAK targets further growth in China with $32m site expansion

Ingredients and fats supplier AAK will invest around SEK 300 million ($31.9 million) to increase capacity at its facility in Zhangjiagang, China.

The expansion will include a processing plant for the company’s special nutrition unit, focusing on the production of infant nutrition solution INFAT, sold through Advanced Lipids, a joint venture between AAK and IFF.

AAK will also add additional capacity in the bakery segment to meet demand for its high-end bakery solutions.

Johan Westman, AAK president and CEO.

Johan Westman, AAK president and CEO said: “China is a key growth market for AAK and the country will continue to present attractive opportunities for profitable and sustainable growth in the speciality and semi-speciality vegetable oils and fats market.

“AAK has established a solid presence in the Chinese market and with these new investments we are very well-positioned to continue to grow organically and capture market share.”

Torben Friis Lange, president of AAK Asia, added: “The processing plant for special nutrition will significantly strengthen the product and service offering for end customers.

“Combined with the investment related to our high-end bakery solutions, we will support our long-term growth in the fast-growing and very important Chinese market.”

AAK added that it will also invest in some base production equipment and infrastructure to accommodate the general domestic growth. The investments are expected to be commissioned during the second half of 2020. 

The announcement sees the Swedish-Danish company continue to boost its operations in Asia after opening customer innovations centres in Singapore and Tokyo and investing in a customisation plant in the Philippines last year.