AAK Annual Report 2017

Asia Our Asian region enjoyed another year with strong organic growth in all markets and good development in our core segments. The growth, which could be seen in all parts of the continent, was experienced within our range of speciality and semi-speciality products, all offering differentiated func- tionalities compared to mainstream products. AAK’s business in China has developed to a complete integrated structure. We have seen a rapid transformation since we established AAK in China, culminating in the inauguration of our plant in Zhangjiagang in September. The ramp-up of the plant has developed as expected and will increase our capacity by approximately 100,000 MT. AAK has a strong go-to-market organization with a very innovative approach which offers a great opportunity for our customers and potential customers. Our business in Japan progressed and is now a complete operation offering speciality solutions and a full range of products, mainly within Chocolate & Confectionary Fats and Special Nutrition. AAK Kamani, our Indian company, is a success story. We continue to be the leading innovation partner within the industry. India had another year with growth but was impacted by the demonetization and GST (Goods & Services Tax) policies implemented by the government. These factors have had an effect on the momentum in the country but are expected, in the long run and already in 2018, to provide a new platform of growth and create solid demand going IRUZDUG :H FRQWLQXH WR LQYHVW LQ HI¿FLHQF\ LQFUHDVHG capacity and in operational improvements. AAK Turkey and the Middle East region saw a great 2017 with many strong improvements, providing AAK with a leading industry position. We have built on a well-established operation, which today delivers a very professional co-devel- opment offering to our customers. As for other regions in Asia, we have successfully continued to implement the AAK business model, focusing on co-development and collaboration with customers, either through our own operations in Malaysia, Singapore and Australia or through designated partners in other regions and countries.