PALMOILMAGAZINE, JAKARTA — Kuala Lumpur Kepong Berhad (KLK) has partnered with Sweden-based AAK AB to develop a specialty oils and fats refinery in Pasir Gudang, Johor, Malaysia, as the two companies seek to expand value-added palm oil processing for the global food industry.
The partnership will be carried out through a newly established joint venture, Nura Speciality Oils and Fats Sdn Bhd, which will develop a processing facility focused on high-value-added palm oil derivatives and specialty fats.
According to an official statement obtained by PalmOilMagazine on Wednesday (Aug. 26, 2026), the strategic partnership forms part of KLK’s efforts to strengthen its midstream processing business, enhance its technical capabilities and reinforce its position as an integrated player in the global oils and fats industry.
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The new facility will manufacture a range of specialty palm oil derivatives with higher added value, targeting global food manufacturers that require ingredients with specific functional characteristics and formulations.
KLK will contribute its strengths in an integrated palm oil supply chain, including sustainable plantation operations and processing capabilities. AAK, meanwhile, will provide technical expertise in specialty fats, product development and formulation.
By combining their respective capabilities, the two companies aim to create higher-value products, strengthen supply reliability and accelerate innovation for customers across international markets.
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Construction of the specialty oils and fats refinery in Pasir Gudang is expected to support a gradual increase in production capacity beginning in 2028, with the facility targeted to reach full utilization in 2029.
The KLK-AAK partnership also reflects the palm oil industry’s broader shift toward higher-value downstream products. Moving beyond CPO production, the development of specialty oils, fats and other value-added derivatives is increasingly seen as a strategy to expand market opportunities and strengthen the competitiveness of palm oil in the global market. (P2)
