KLK expands oleochemicals processing capacity in China

Kuala Lumpur Kepong Berhad (KLK), a leading international plantation company, has announced a significant expansion of its oleochemicals processing capacity in China. This strategic move is aimed at meeting the growing demand for sustainable oleochemical products in the region and strengthening KLK’s position in the global market.

The new facility, located in Zhangjiagang, Jiangsu Province, will enhance KLK’s ability to produce a wide range of high-quality oleochemical products, including fatty acids, glycerine, and specialty esters. This expansion is expected to increase the company’s production capacity by 50%, providing a robust supply to cater to the diverse needs of industries such as personal care, pharmaceuticals, food, and industrial applications.

The new high-purity fatty acids and glycerine plant brings the facility’s annual processing capacity to 500,000 tonnes. The oleochemical complex located on 58 acres is owned and operated by KLK’s wholly-owned Taiko Palm-Oleo (Zhangjiagang) Co Ltd (TPOZ). The expansion makes TPOZ one of the largest and most technologically advanced oleochemical production plants in China. TPOZ was incorporated in January 2004. Its first plant was commissioned in 2006.

Strategic importance

KLK’s expansion in China aligns with the company’s long-term strategy to leverage the burgeoning market for oleochemicals in Asia. With China being one of the largest consumers of oleochemical products, this new facility positions KLK to better serve its clients with improved efficiency and reduced lead times.

“Our journey began with the vision of becoming an integrated player in the oils and fats sector, both locally and internationally. The presence of our facility in Zhangjiagang has been pivotal in realising this vision. It has enabled us to cater to a growing market, catering to both domestic consumption and international export,” said Kow Tiat Yong, deputy CEO of KLK OLEO, KLK’s oleochemicals manufacturing division.

Founded in 1906, Kuala Lumpur Kepong Berhad (KLK) has grown from its humble beginnings as a plantation company to become a leading international player in the oleochemicals industry. With operations spanning Malaysia, Indonesia, and China, KLK is committed to sustainability, innovation, and delivering high-quality products to its global customer base.