KLK Emmerich GmbH - A successful Malaysian investment in GermanyEnlarge image (© KLK Emmerich GmbH)
In recent years, the Kuala Lumpur-Kepong (KLK) Group has made two strategic investments in Germany. The first acquisition in 2010 was a plant on the river Rhine in Germany, the company is now known as KLK Emmerich GmbH.
The plant, which is over 100 years old, is strategically situated close to key customers and raw material supply routes in the heart of Europe. Possessing world-scale assets, it has production facilities which manufacture a range of fatty acids, hydrogenated fatty acids and glycerine by splitting of vegetable oils. The main raw materials used on site are natural vegetable oils (e.g. coconut oil, palm kernel oil, rapeseed oil). KLK Emmerich is known to have a strong heritage having previously been owned by Unilever, ICI (Uniqema) and Croda.
The second acquisition in 2015 was a plant in the City of Dusseldorf, which is the centre of a very key chemical region in Germany along the River Rhine. This plant produces both vegetable-based as well as tallow-based oleochemicals, giving KLK a much more complete oleochemcial portfolio in the European region. It was originally built by Henkel, and being at the same site, it has close association with chemical majors BASF and Henkel.
Apart from the initial acquisition costs, KLK also invested heavily in further capital projects at both sites to increase the capacity and introduce new downstream specialty products. KLK believes that one of the greatest benefits that the investments in Germany have brought, is the team of very dedicated and skilled workforce who are a positive influence to the whole Group culture.
Mr. AK Yeow, Managing Director KLK Oleo Group says: “Investing in Germany was a good choice in view of the good infrastructure, excellent talent pool and also easy access to the European market.”
With these acquisitions, KLK has become a major basic oleochemical manufacturer and supplier to new European markets.