Alfa Laval seals Indonesian processing deal

By Rory Harrington

- Last updated on GMT

Related tags Petroleum Alfa laval

Alfa Laval announced it has won a €9.4m (SEK 85m) contract to supply equipment to an Indonesian edible oil company in a move to develop one of the world’s largest plants.

The Sweden-based firm said rising standards of living in the South East Asian country was driving growth in edible oil processing. Worldwide demand has grown at an average annual rate of approximately 6% over the past decade, it added

The deal will see Alfa Laval supply both engineering and kit for two new refining production units as well as equipment to increase the capacity of two existing units.

When completed the facility will be amongst the largest edible oil production plants in the world, said the company.

“We have seen a very strong growth in edible oil investments, especially in the fast-growing countries”,​ said Lars Renström, president and CEO. “The order also confirms our strong position as a solution provider for the edible oil industry.”

Emerging markets

The current deal is one in a string of contracts the company has secured in recent years as part of its strategy to drive growth through expansion in emerging markets.

In the last 18 months the firm has reported winning a number of contracts in India - including worth SEK50m (€5.8m) to supply equipment to a vegetable oil plant in India.
“India has recently become Alfa Laval’s third largest market after the US and China”,​ said Renström. “This order confirms the good development we have seen in the country, not the least in the food and vegetable oil industry driven by increased living standard​.”

In the first six months of 2011, orders in emerging markets all grew strongly year-on-year, reported the firm in its H1 results earlier this year. Latin America led the way on 51%, closely followed by a 49% order increase in Asia. Russian orders rose by 45% compared to a third in North America and just over a quarter in Western Europe.

Related topics Processing & Packaging

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