LDC expands in Indonesia with new glycerin refinery, edible oil packaging facility
This strategic investment aims to meet the growing global demand for high-purity, USP-grade glycerin and packaged edible oils
INDONESIA – Louis Dreyfus Company (LDC) has inaugurated a new glycerin refining plant and edible oil packaging line in Lampung, Indonesia, marking a significant expansion of its downstream operations in Southeast Asia.
The glycerin plant boasts an annual production capacity of 55,000 metric tons, while the edible oil packaging line can handle approximately 64,800 metric tons per year.
This strategic investment aims to meet the growing global demand for high-purity, USP-grade glycerin and packaged edible oils, aligning with LDC’s commitment to value-added products and supply chain integration.
According to LDC, the new facilities are strategically located near key export hubs, enhancing its regional and global supply chain capabilities.
The glycerin plant is designed to produce high-purity, USP-grade glycerin, catering to industries such as pharmaceuticals, personal care, and cosmetics. According to industry reports, the global glycerin market is projected to grow at a compound annual growth rate (CAGR) of 6.9%, reaching a market value of USD 48.03 billion by 2034.
The edible oil packaging line will leverage synergies with LDC’s existing operations in Lampung to capture market opportunities for packaged edible oil exports and explore domestic possibilities in line with Indonesia’s goal to develop its downstream palm oil industry.
James Zhou, LDC’s Global Head of Food & Feed Solutions and Chief Commercial Officer, emphasized the importance of this development.
“This inauguration marks an important step in the development of our Food & Feed Solutions business. The new plant leverages existing synergies with our operations in Lampung, as well as globally in the US and Europe, to expand our capacity and meet the growing needs of our customers for high-quality glycerin,” he said.
The expansion is expected to create approximately 200 new jobs by the end of 2025, contributing to economic and professional skills development in the local Lampung community.
This development in Indonesia comes after the company, recently announced the acquisition of a new grains and oilseeds warehouse in Santa Elena, Entre Ríos province, Argentina.
The facility boasts a static storage capacity of 22,000 tons and an additional 55,000 tons through silo bags.
Strategically located beside the Paraná River, it features a barge port with an hourly shipping capacity of 450 tons, enhancing logistical efficiency to LDC’s port complexes in Timbúes and General Lagos, situated 260 km and 320 km south, respectively.
“The continued expansion of our inland origination capabilities in Argentina further enhances our ability to work closely with farmers, facilitating supply chain traceability to farm level,” said Juan Tizado, LDC’s Regional Head of Grains & Oilseeds Origination for South & West Latin America.
This acquisition aligns with LDC’s strategic expansion in Argentina, following the purchase of a warehouse in Gobernador Mansilla in 2024.
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