Cargill has begun construction of a $200 million state-of-the-art palm oil refinery in Lampung, Indonesia, which is expected to begin operations late next year. Palm oil from the Lampung refinery will be produced according to the principles set out in Cargill’s Policy on Sustainable Palm Oil and will help provide greater transparency through increased traceability-to-plantation.
The facility will accelerate Cargill’s efforts to develop a sustainable palm supply chain, provide verified deforestation-free products to its customers, and play a key role in connecting sustainable crude palm oil production in Indonesia to demands in North America and Europe through a fully integrated supply chain from plantation to customer. With the refinery, Cargill will be able to meet customers’ evolving expectations around sustainability and transparency by guaranteeing traceability to plantation and improved product quality standards.
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“This project is a key step for Cargill to increase the availability of sustainably sourced and produced edible oil ingredients for our customers, helping Cargill to fulfill its purpose to nourish the world safely, responsibly, and sustainably,” says Robert Aspell, president of Cargill Asia Pacific. “In addition, this fully integrated supply chain offers our customers assurance that stringent production requirements and the highest product quality are achieved.”
Palm oil, an important ingredient in nourishing the world’s population, has experienced strong demand in recent years, with Indonesia as the largest producer and exporter. Palm oil is a high-yielding, very versatile oil used as a cooking oil and to create flavor and texture in many foods. It also works as a stabilizing, binding, and foaming agent in many everyday household products.