INDONESIAN- Leading commodity trader Louis Dreyfus Company (LDC) recently announced the expansion of its refining complex in Lampung, Indonesia as part of strategic plans to expand downstream and diversify revenue through value-added products.
The development will see the addition of glycerin refining capacity and edible oil packaging capabilities and will complement existing glycerin refining activities in the US (Claypool, Indiana) and Germany (Wittenberg).
The edible oil refinery business is under the LDC’s Food & Feed Solutions platform which debuted in January to address favorable market trends and customer preferences toward healthy, nature-based products, LDC said.
Its focus is on developing and growing LDC’s presence in the lecithin, glycerin, and specialty feed protein space, leveraging the company’s raw material origination and processing capabilities.
LDC provides that this expansion is inspired by the growing global demand for refined glycerin, for which Indonesia is expected to be a production hub.
In so doing, the expanded plant will facilitate the completion of the Group’s glycerin offering to cover all major feedstocks, in line with customer formulation and label requirements.
According to the statement issued by LDC, the new plant will be equipped to manufacture USP-grade glycerin and offer various food-grade packaging options.
“The expansion of our integrated palm refining complex in Lampung with glycerin refining and edible oil packaging lines is an important milestone in the Group’s strategic plans, supporting revenue diversification and downstream integration,” said James Zhou, LDC’s Chief Commercial Officer and Head of Food & Feed Solutions.
He added that this investment strengthens LDC’s ability to meet growing and evolving customer needs worldwide with high-quality products and ingredients, and positions LDC as a global leader in the glycerin complex, as a core product in our portfolio.
“This development not only strengthens our position in the Indonesian market but also further reinforces our capacity to process, package and distribute value-added products that respond to evolving market and consumer trends, including growing demand for healthy, plant-based foods and ingredients, leveraging LDC’s global supply chain, operational network and market insight,” added Rubens Marques, LDC’s Head of South & Southeast Asia.
LDC announced that the construction work for the plant is expected to begin later this year.