AAK Takes Solvent-Free Dry Fractionation Commercial at Malaysian NURA Plant to Secure Cocoa Butter Equivalent Supply

PASIR GUDANG, Malaysia, Oct 7, 2026 — Swedish specialty oils and fats group AAK will run its patented dry-fractionation technology in commercial production for the first time at NURA Speciality Oils & Fats, the joint venture plant it is building with Malaysian plantation group Kuala Lumpur Kepong (KLK) in Pasir Gudang, Johor.

The process will produce specialty palm-mid fractions (PMFs), a core building block of the cocoa butter equivalents (CBEs) that AAK supplies to chocolate and confectionery manufacturers. The move gives AAK a lower-impact production route for a category under pressure from volatile cocoa supply.

What dry fractionation changes

Fractionation separates an oil into components with different melting behaviour. Dry fractionation does this through controlled cooling, crystallisation and filtration, without the solvents used in some fractionation routes for high-specification fats.

According to AAK, the technology can reduce both initial capital investment and operating costs, as well as CO₂e emissions, while meeting the quality standards required for specialty fats. It will complement the company’s existing fractionation capabilities rather than replace them.

Jeppe Lindegaard Hjorth, AAK’s head of process development, described the move from research project to commercial production as an important milestone. He said NURA would be the first deployment and that the company sees strong potential to use the technology more widely.

Securing the upstream supply

AAK and KLK formed the joint venture in October 2025, with AAK committing approximately SEK 300 million over three years. Construction began with a groundbreaking in Pasir Gudang on Aug 13, 2026. The plant is expected to begin ramping up in 2028, with full production planned for 2029.

The facility is designed to give AAK more direct access to the high-purity specialty palm fractions that feed its Chocolate & Confectionery Fats business, complementing long-standing supplier relationships in the region. AAK’s global sourcing, trading and sustainability director Ernesto Zamudio has said the project brings the company closer to the source and strengthens its control over sustainability, quality, traceability and contaminants across the supply chain.

Cocoa volatility keeps CBEs in demand

CBEs are formulated to match the crystallisation and melting profile of cocoa butter, allowing manufacturers to partly or fully replace it depending on the product and market. In the EU, chocolate may contain up to 5% of specified vegetable fats other than cocoa butter, while compound coatings and fillings offer wider scope. AAK markets CBEs under its Illexao range.

With cocoa supply and pricing still volatile, confectioners have been looking for ways to stabilise recipe costs without compromising snap, gloss and bloom resistance. Specialty fats suppliers that can guarantee consistent, traceable PMF supply are well placed to benefit.

Alexander Perlaky, AAK’s strategy and projects director for Europe, said the technology strengthens the company’s position in the CBE market and could support growth in other business areas that rely on its fractionation know-how.

Part of a broader alternative fats strategy

NURA is one strand of a wider push by AAK to expand capacity and diversify its fat inputs. In July, the company signed a two-year development agreement with carbon-to-fat start-up Savor and took an equity stake in the business, whose fats are made without agricultural feedstocks. In September, AAK secured £2 million from Humber Freeport towards expanding its plant-based oils refinery in Hull, UK.

Sustainability questions remain

Cutting solvent use and process emissions addresses part of the footprint of specialty fats, but palm-derived ingredients remain under close scrutiny over deforestation and traceability. Buyers in the EU and elsewhere will expect the joint venture’s sourcing to meet certification and due-diligence requirements as volumes ramp up.

For food manufacturers, the more immediate takeaway is that solvent-free fractionation is moving from pilot to industrial scale in a key ingredient category. If AAK’s capital and operating savings hold up at NURA, the technology could spread to other specialty fat applications well beyond chocolate.