AAK, a Swedish-Danish company well-known as a leading provider of value-adding vegetable oils & fats, announced to inject £24.4m to expand its facility in China.
After opened the first plant in Zhangjiagang, China in 2017, AAK decided to increase capacity and support volume growth especially in Special Nutrition and Bakery segments in China by filling an additional £24.4m. to AAK’s Zhangjiagang factory.
Johan Westman, president and CEO at AAK 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.” he added.
According to AAK’s press release on 11 March 2019, the £24.4m investment will provide AAK’s China an independent special nutrition processing plant focusing on infant nutrition production and bakery segment to support the increasing demand for AAK’s high-end bakery solutions and special nutrition.
Furthermore, Torben Friis Lange, President AAK Asia said “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.”
The investments are expected to be commissioned during the second half of 2020.