Following a growing customer demand for specialty fats, Cargill has invested $100 million to further upgrade its dedicated facility in Port Klang, Malaysia. This plant will host dry palm fractionation equipment and other state-of-the-art tools to help it continue to supply the ingredient to the Asia-Pacific region. Additionally, the company intends to enhance its Malaysia Edible Oils R&D Center by improving currently installed lab equipment.

These upgrades will allow the company to house a reliable and sustainable end-to-end supply chain. Fats produced from the facility will also be certified by the Roundtable for Sustainable Palm Oil (RSPO).

A year ago, Cargill had already spent $20 million to grow its production capacity. These initiatives are in line with the Malaysian government policy that directs palm oil downstream companies to move up the value chain, creating positive impact on the economy and local employment landscape.

Specialty fats are produced from seed and tropical oils and utilised in a variety of applications. This ingredient can improve a food item’s overall texture, mouthfeel and taste. It also promotes product stability – heat resistance to avoid clumping during colder temperatures, and quick meltdown too.

“Specialty fats are incredibly popular due to their versatility and functionality,” said Jennifer Shomenta, president and group leader for Cargill’s global edible oils solutions business. “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.”

“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,” Shomenta said. “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.”

The construction is set to be completed by late 2023. “This investment will position us to become a leading specialty oil solution provider by improving our capability to co-develop new solutions with customers and address key consumer trends,” says Jonathan Yeo, regional strategy and innovation leader for Cargill’s edible oil business in Asia.

Besides specialty fats, the Malaysia hub also does vegetable oil refining, and offers starches, sweeteners, grain and oilseeds, and texturizers.

In the future Cargill is set to invest $200 million to build a palm oil refinery in Indonesia and partner with Nestle to support local Indonesian cocoa farmers.