Karlshamns to run Danisco's lipids operation

As a consequence of this co-operation, Danisco's​ products will be marketed under Karlshamns'​ brand Akoline, all over the world. The companies said that co-operation will already generate positive effects on earnings in 2005.

The agreement is in line with existing Karlshamn's strategy to expand its business this business area, and the move is expected to further consolidate the company's position as the number one supplier of vegetable speciality fats to the global cosmetic industry, said Karina Petterson, responsible for business sector Lipids for Care.

The Akoline emulsifiers contained in the product portfolio are of food-grade quality, and based on natural raw materials. The ingredient's properties are said to offer formulation opportunities for products with high functionality and bioactive properties.

Traditionally the emulsifier has been widely used in the cosmetics industry to achieve stability and texture in lotions and other skin-care products.

In the Karlshamns Group, which in 2003 had sales of SEK 3,317 million (€365m), Lipids for Care is part of Business Area Oils & Fats and responsible for the development and marketing of the Group's high value-added speciality fats to the cosmetic industry.

The division was formed in 2000 and has been significantly developed in response the cosmetic industry's growing demand for skin care and general cosmetics products containing vegetable-based raw materials.

Previously Karlshamn's mainstay business has been the supply of fats and oils to the European food industry, but despite being a much smaller part of the business, the growth of Lipids for Care has consistently out-stripped its food business.

At the end of last year Sweden-based Karlshamns announced an SEK 60 million streamlining programme that aims to push up the groups profit margine by SEK 100 million by 2006. The programme includes a host of energy and processing improvements that are aimed at all the group's divisions.