Palm oil plant expands

Related tags Kuala lumpur Vegetable fats and oils Malaysia

International flavours and food ingredients manufacturer Quest
International and its joint venture partner, Kuala Lumpur Kepong,
are doubling the production capacity in their Malaysian emulsifier
plant as a long term strategy to meet global demand for an
alternative to soybean oil and animal fat-based food emulsifier.

International flavours and food ingredients manufacturer Quest International and its joint venture partner, Kuala Lumpur Kepong, are doubling the production capacity in their Malaysian emulsifier plant as a long term strategy to meet global demand for an alternative to soybean oil and animal fat-based food emulsifier.

Declan MacFadden, chairman of the board of directors of the joint venture company Esterol, said that the company was now in the final stages of commissioning an expansion of production capacity to 30,000 metric tons per annum.

"The total investment for the Esterol plant amounts to RM57 million to date,"​ he said at a press conference after the official opening of Esterol.

The food emulsifier produced by Esterol is mainly used to enhance the taste and quality of food.

"Our biggest drivers for growth have been the bakery, dairy and confectionery markets,"​ he said.

Fadden said the company's main raw material was palm oil which was accepted in many countries due to its nutritional benefits as opposed to genetically modified types of vegetable oils.

"Some 90 per cent of the emulsifier that Esterol produces are for exports while the balance are for local consumption in Malaysia,"​ he said.

The main export markets are in Europe, North America, Australia and China.

Paul Drechsler, chairman of Quest, said the Esterol plant was the only manufacturing site for the production of emulsifier in Asia.

Quest has another two plants, one in Canada and the other in the Netherlands.

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