PULAU INDAH: Belgium-based Oleon NV and United Plantations Bhd’s (UP) 50:50 joint venture (JV) investment, UniOleon Sdn Bhd, launched its state-of-the-art food emulsifier factory in the Selangor halal hub here on Tuesday.

With a capacity of 15,000 tonnes a month, the factory is producing functional food oleo-derivatives.

The launch came on the heels of the second anniversary of UniOleon. Gracing the event were Princess Astrid of Belgium and Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas.

Oleon chief executive officer Moussa Naciri told The Edge Financial Daily the JV had invested over US$20 million (RM66.8 million) in the new plant.

Expansion plans have already been mapped, as Oleon intends to, if need be, add another 10,000 tonnes of capacity to the factory’s 15,000-tonne-a-month capacity.

“[The new plant] strengthens our presence in Malaysia and Asia. Malaysia is our base in Asia. This is really our Asian headquarters. This plant is adding [to our] capacity and product range, and continuing our development in this country,” he added.

With a vertically integrated supply chain model, all the way back to the raw materials, UniOleon’s ambition is to produce zero trans fats emulsifiers by eliminating partially hydrogenated oils from the production process and by having a clear dedication to non-GMO (non-genetically modified) and allergen-free products.

Naciri said the new plant will use 80% of its capacity to produce food-related products, while the rest will cater to lubricant, beauty and healthcare products.

“This is not our first investment in Malaysia. We have a longstanding relationship with this country. We started with a small branch office in 2001, which basically became, with the help of InvestKL, our operational headquarters for the Asia-Pacific,” he said.

InvestKL is a government-owned entity which is tasked to attract 100 large multinationals to Greater Kuala Lumpur by 2020.

With an annual turnover of €700 million (RM2.92 billion), Oleon is Europe’s largest oleochemical group. In 2009, it became a wholly-owned unit of French industrial and financial company Sofiprotéol SA.

Oleon has production plants in Ertvelde, Belgium, and Emmerich, Germany, for the production of base oleo-chemicals. Another plant in Oelegem, Belgium, is involved in dimer and ester production, while its operations in Compiègne, France, and Malaysia produce esters and resins for the global market.

This article first appeared in The Edge Financial Daily, on November 27, 2014.