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Kuala Lumpur Kepong Berhad (KLK) and AAK have marked a pivotal step in their strategic partnership with the groundbreaking ceremony for NURA Speciality Oils & Fats Sdn. Bhd. on August 13 in Pasir Gudang, Johor. This joint venture signifies the establishment of a cutting-edge facility dedicated to producing high-value, specialized palm fractions.
The project entails the development and operation of a specialty oils and fats refinery focused on manufacturing high-value, fractionated palm oil products for the global food and confectionery industries.
Production at the new facility is slated to commence in 2028, reaching full operational capacity by 2029. This initiative underscores KLK's continued expansion into its midstream operations and its increasing footprint in specialty fats, thereby generating additional long-term value across its integrated supply chain.
For AAK, the new plant will secure a reliable supply of sustainable, high-purity palm-based feedstocks essential for manufacturing cocoa butter equivalents (CBEs), aligning with its long-term growth objectives within the Chocolate & Confectionery Fats segment.
The partnership leverages the distinct strengths of both KLK and AAK across various stages of the value chain, promising enhanced supply security, quality assurance, traceability, and sustainability within the industry.
Ernesto Zamudio, AAK's Global Sourcing, Trading & Sustainability Director, commented on the significance, stating, 'Project NURA is more than a new plant – it connects the strengths of two companies from different parts of the value chain. For AAK, it brings us closer to the source and strengthens our ability to manage priorities across the supply chain, from sustainability and quality to traceability and control over contaminants.'
By focusing on specialty palm fractions and their high-value applications, the NURA project is designed to meet the dynamic demands of global food and confectionery manufacturers, while simultaneously reinforcing both companies' dedication to responsible sourcing, supply chain resilience, and innovation in specialty fat solutions. Source: FoodTechBiz