06/12/2012 (Bernama) - Palsgaard A/S, a global market leader for chocolate and extruded whipping cake emulsifiers, is expected to further grow its business in the Asia Pacific region with the opening of its new production factory in Nusajaya, Johor, Malaysia by mid-2013.

Its chief executive officer, Jakob Thoisen said production will commence in mid-May, while the official opening is slated for August.

"The fully automated 20,000-metric-tonne emulsifier plant in Nusajaya will complement the Singapore facilities and satisfy customer demand for high quality emulsifiers and stabilisers.

"It is Palsgaard's first production facility in the region, he told Bernama in an interview here.

The factory will produce high quality food emulsifiers that include distilled monoglycerides (DMG), sodium stearoyl-2-lactylate (SSL), propylene glycerol esters of fatty acids (PGMS), mono-and di-glycerides (MDG) as well as citric acid esters of mono- and di-glycerides (CITREM).

Palsgaard will also produce integrated blends of emulsifiers and stabilisers for dairy, ice cream and soya milk manufacturers.

Apart from catering for the Asian market, Thoisen said products from the new factory will also go to countries in South America and Europe.

"We will be more competitive by being close to the raw materials which will give us the advantage today compared to our competitors," he added.

Thoisen was in Singapore as part of a trip to Asia to introduce the new factory and its business implications to partners at a regional Agents' and Distributors' meeting.

Following its global customers into Asia has worked well for Palsgaard, which benefited greatly from the region even during crisis years.

"We have seen double digit-growth of our business in this region even during the financial and economic crises that took place in 1997 and in 2008," he said.

Thoisen said the reason why Palsgaard picked Malaysia as a destination of choice is due to the proximity to palm oil, which is one of its main raw materials.

"Coupled with good infrastructure and having great cooperation from the Malaysian Investment Development Authority (MIDA), it prompted us to invest in Malaysia.

"We had good cooperation from MIDA right from the start," he added.

Thoisen said the Palsgaard factory in Malaysia will create around 30 jobs with most functions being automised.

"We are now in the midst of interviewing and selecting people for vaious positions, including engineers," he added.

On another note, Thoisen said food manufacturers in Asia are getting increasingly sophisticated and more demanding.

"They want to produce high quality food products at a relatively low cost. Consumers here are also becoming more health conscious," he said.

Palsgaard has already invested in a Regional Application Centre in Singapore worth more than US$8.2 million for dairy, ice cream, soya, bakery, and confectionery applications.

Thoisen said Palsgaard is fully committed to Asia.

"We are thus expanding our operations, and that includes increasing our manpower and human resources in general. We have hired food technologists, and chemical engineers to support the growth of our business in this region," he added.

Palsgaard's commitment to corporate social responsibility (CSR) extends to Asia as well.

The company aims to reduce its carbon emissions to zero in 2020 at all its factories around the world.

Palsgaard also plans to source for raw materials, specifically palm oil, from suppliers who are members of the RSPO (Roundtable on Sustainable Palm Oil) and GreenPalm.

The company's main factory and headquarters are located in Denmark, with further manufacturing plants in China, the Netherlands and Mexico, in addition to that in Malaysia.

Palsgaard is owned by the Schou Foundation, whose main objective is to support relevant research for industry and development and to maintain the Palsgaard Estate for the overall benefit of its employees and the local community.

Being owned by a foundation gives Palsgaard the freedom to take a more holistic, long-term view on investments and activities, as opposed to focusing solely on short-term financial performance.