AAK and Kuala Lumpur Kepong Berhad (KLK) have started construction of a new specialty palm fractions plant in Pasir Gudang, Malaysia, through their Nura Specialty Oils and Fats joint venture.
AAK announced the development on 1 September, following a groundbreaking ceremony on 13 August. The plant is intended to increase the ingredients supplier’s access to high-purity palm fractions used as feedstock for cocoa butter equivalents (CBEs), making the investment directly relevant to chocolate and confectionery manufacturers sourcing specialty fats.
Strengthening specialty fats supply
Once operational, Nura will broaden AAK’s supply base and increase its upstream integration in a raw material category used across chocolate, compound coatings, fillings and other confectionery applications.
AAK says bringing the business closer to the source should provide greater oversight of sustainability, quality, traceability and contaminant control. This is significant at a time when confectionery ingredient procurement is increasingly being assessed not only on cost and functionality, but also on the resilience and transparency of the underlying supply chain.
The development is a longer-term capacity project. AAK expects the facility to begin ramping up operations during 2028, with full production planned for 2029.
Implications for confectionery manufacturers
For chocolate and confectionery producers, the investment is notable because specialty fats can provide manufacturers with additional formulation options alongside cocoa butter. Performance requirements vary considerably between applications, making consistency in raw material quality and processing particularly important.
Closer control of the feedstock supply could therefore become an important consideration for manufacturers assessing specialty-fat suppliers on technical consistency as well as traceability and security of supply.
The project also illustrates continued investment further upstream in the confectionery ingredients chain. Rather than adding finished-product capacity, AAK and KLK are investing in the raw material infrastructure that supports subsequent production of confectionery fats. For procurement and R&D teams, that makes the development worth following as Nura moves towards commercial production later in the decade.
