LDC expands downstream presence with glycerin-refining plant in Lampung, Indonesia

Louis Dreyfus Company announced July 14 the expansion of its refining complex in Lampung, Indonesia, as part of the group’s 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.

In a context of growing global demand for refined glycerin, for which Indonesia is expected to be a production hub, the development of LDC’s new facilities in Lampung will complement existing glycerin-refining activities in the U.S. (Claypool, Indiana) and Germany (Wittenberg), completing the group’s glycerin offering to cover all major feedstocks, in line with customer formulation and label requirements.

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 and feed solutions. “This investment strengthens our 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.”

Rubens Marques, LDC’s head of the South and Southeast Asia regions for the company, added, “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.”

Construction work is expected to begin later this year.

LDC is a leading merchant and processor of agricultural goods, founded in 1851.

Structured as a matrix organization of six geographical regions and 10 platforms, LDC is active in over 100 countries and employs approximately 17,000 people globally.