AAK pledges £24m investment to expand its facility in China
AAK based on King George Dock
By Hull Daily Mail | Posted: 12 Mar 2019
Edible oils and fats giant AAK has announced it will invest almost £25m to expand its new facility in China.
The business, which has a base in King George Dock, Hull, opened its new production plant in the Far East just 18 months ago.
AAK has however now announced it is to pump an additional £24.4m into the facility, to increase its capacity and support growth.
Part of a Swedish-Danish company, AAK is one of the biggest businesses in Hull.
Johan Westman, president and CEO at AAK, said: “China is a key growth market for AAK and the country will continue to present attractive opportunities for profitable and sustainable growth in the speciality and semi-speciality vegetable oils and fats market.
AAK has established a solid presence in the Chinese market and with these new investments we are very well positioned to continue to grow organically and capture market share.”
The £24m investment will act as an add-on to the facility AAK already has in Zhangjiagang, China.
It comes on the back of a high demand for AAK’s special nutrition and bakery products.
AAK will also invest in some further base production equipment and infrastructure to accommodate the wider domestic growth.
The business’ production site in Zhangjiagang was inaugurated in September 2017 with an annual production capacity of 100,000 MT but was always built and prepared for further expansion.
That expansion has now been announced by AAK.
Torben Friis Lange, president of AAK Asia, said of the news: “The processing plant for Special Nutrition will significantly strengthen the product and service offering for end customers.
“Combined with the investment related to our high-end bakery solutions, we will support our long-term growth in the fast-growing and very important Chinese market.”
The investments are expected to be commissioned during the second half of 2020.
AAK supplies value-adding ingredients, vegetable oils and finished products to all the main retailers and food manufacturers, and many leading pub and restaurant chains.
Last year in Hull, the business unveiled its new Customer Innovation Centre at King George Dock.
The new centre comprises a large test bakery, an ultra-modern demonstration kitchen, and conference and office facilities.