Cargill has announced plans to build a new palm oil refinery in Lampung, Indonesia, with a $200m investment.

The plans will accelerate the company’s efforts for the development of a sustainable palm supply chain and offer verified deforestation-free products to customers.

Cargill Asia-Pacific president Robert Aspell said: “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 fulfil its purpose to nourish the world safely, responsibility and sustainably.

“In addition, this fully integrated supply chain offers our customers assurance that stringent production requirements and the highest product quality are achieved.”

Construction works for the new Lampung facility have already started, with completion scheduled for next year.

once completed, the refinery will play an important role in connecting sustainable crude palm oil production in the country to demands in North America and Europe through a fully integrated supply chain.

With the new facility, Cargill aims to meet the evolving expectations of customers around sustainability and transparency, as well as further bolster its position as a supplier of choice for sustainable palm oil.

The company said that the refinery will produce palm oil according to the principles set out in its sustainable palm oil policy.

In addition to cooking, palm oil is used to create flavour and texture in many food products. It also works as a stabilising, binding and foaming agent in many household products.

Last December, Cargill announced the doubling of the production capacity of cold-water swelling starch in Indonesia to meet the increasing food consumption.