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“In daily production, there is a strong focus on new products, growth and new possibilities in the stronger economies, such as Asia and the Amerias. The focus in many European countries are on cost optimisation and updating of existing products,” notes Mogensen.


International perspectives


To grow and support international manufacturers, Palsgaard has just started construction of its latest factory in Malaysia, designed according to the highest standards of production technology, energy consumption and environmental influence. When complete in the first half of 2013, the factory will have a capacity of 20,000 metric tonnes. It will be able to satisfy the increasing needs and demands of Palsgaard’s customers for high quality emulsifiers and stabilisers in the Asian region. The company already has a fully equipped application centre in Singapore with pilot equipment for dairy, ice cream, bakery and soya milk products. The new Malaysian production facility makes it all complete. In addition to Singapore, Palsgaard has bakery pilot plants in Mexico and Denmark - each with the ability to understand production needs in regional


markets. The fast, skilled regional service is combined with an in-depth knowledge of local products. Its central application facility in Denmark includes a fully equipped industrial bakery where realistic industrial pilot tests are carried out on a regular basis. The firm’s industrial size mixers and aerators feed a two zone continuous band oven simulating industrial conditions. This unique setup facilitates proper upscaling and increases the likelihood of success in the market.


Significant responsibility


This significant international activity places responsibility on the company’s shoulders. “Being a player in the global market, Palsgaard often faces CSR demands from international companies and it is our intention to become known for our social responsibility. This concept is not only a real ingredient in our history and everyday work, but will now also be treated strategically with continuous improvements,” notes Thøisen.


Another example is Palsgaard’s Mexican subsidiary. In addition to being awarded the ‘Clean Industry’ certificate by the Mexican Federal Attorney of Environmental Protection in 2009 and 2011, it has just completed the installation of a new photovoltaic solar panel system. This will produce enough electric power to cover 80% of the facility’s energy consumption. Miguel Hidalgo, managing director of the Mexican facility, says, “This will result in a positive impact by minimising external energy requirements


and decrease CO2 emissions, hence reducing our carbon footprint.” The Danish embassy in Mexico is expected to participate in the inauguration event in September 2012.


Sustainable partnerships


The raw materials used in Palsgaard’s products comprise for the most part of different kinds of vegetable oils, gums (hydrophilic polysaccharides), starches and glycerine. Most of its suppliers are European companies, although many of the initial stages in these raw material value chains originate in other countries (e.g. palm oil and palm oil derivatives). Palsgaard has been a member of Roundtable on Sustainable Palm Oil (RSPO) since early 2008 and has set targets of exclusively using certified palm


oil-based raw materials in its products. The company was certified by RSPO in March 2012 and is able to offer Mass Balance products to its customers. It has extended the accountability requirements to its suppliers in relation to the UN Global Compact and set up a project, which is intended to build a more professional and more systematic approach to supplier management where CSR related issues are concerned. The supplier policy is the expression of its ambition to enter into partnership and dialogue with its suppliers on CSR, to make ethical responsibility in the supply chain a requirement and to include CSR conditions when evaluating the merits of and choosing suppliers. Openness and continuing local


efforts will be its tool for sustainable commodity purchases. “In a global context, we consider it important to contribute to reducing CO2 emissions and we have set an ambitious goal of becoming CO2-neutral by 2020,” says Thøisen. He concludes that its slogan ‘Heart Working People’ is a way of capturing the company’s philosophy. “Our founders were generous people and it lives on - we do things from the heart. The phrase symbolises the way we express who we are - we work hard and from the heart.”


14 Kennedy’s Confection September 2012 kennedysconfection.com


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