A process for producing a quaternary ammonium compound of Formula I: wherein A and B each independently represents (CH 2 CHR 2 O) n2 H or (CH 2 CHR 2 O) n3 OCR 3; C represents methyl or ethyl or benzyl; n1, n2 and n3 each independently represents an integer from 1 to 20, preferably 1-6, more preferred 1-3; most preferred 1 or 2 or 3; if A and B both are (CH 2 CHR 2 O) n2 H or both are (CH 2 CHR 2 O) n3 OCR 3, n2 and n3 may be different or identical in A and B. R 2 each independently represents H or alkyl group with from 1 to 6 carbon atoms, preferably from 1 to 3 carbon atoms, more preferred H, methyl or ethyl, even more preferred H or methyl, most preferred H; R 1 and R 3 are each independently selected from the group consisting of linear or branched C7-C21, preferably C11-C21, more preferred C11-C19, most preferred C11-C17 alkyl groups, and linear or branched C7-C21, preferably C11-C21, more preferred C11-C19, most preferred C11-C17 alkenyl groups; X- represents a counter ion, preferably, an alkyl sulfate group, especially preferred MeSO 4 - and EtSO 4 -, or a halide anion, especially preferred Cl -, or an alkyl carbonate, especially preferred methyl carbonate and ethyl carbonate; and wherein the process comprises step a), wherein a hydroxy alkyl tertiary amine of Formula II wherein A and B each independently represents (CH 2 CHR 2 O) n2 H or (CH 2 CHR 2 O) n3 H and n 1, n 2, n 3 and R 2 are defined as for Formula I above, is reacted with one or more fatty acid oils or a mixture comprising one or more fatty acid oils and one or more fatty acids, wherein the alkyl or alkylene chains of the fatty acid residues correspond to R 1 and R 3 as defined for Formula I above, wherein the transesterification reaction temperature in step a) is in the range of from 140 to 200 degree Celsius, and wherein the process further comprises step b), wherein the reaction product of step a) is reacted with a quaternization agent C-X, wherein C and X are defined as for Formula I above, to obtain the quaternary ammonium compound of Formula I, characterized in that the total amount of the oils to be added in step a) is divided into at least two portions, wherein portion 1 is added to the hydroxy alkyl tertiary amine of Formula II at the start of step a) and portion 2 as well as any further portion is added to the reaction mixture after at least some of the oil of portion 1 has reacted with the hydroxy alkyl tertiary amine according to Formula II. wherein A and B each independently represents (CH 2 CHR 2 O) n2 H or (CH 2 CHR 2 O) n3 OCR 3; C represents methyl or ethyl or benzyl; n1, n2 and n3 each independently represents an integer from 1 to 20, preferably 1-6, more preferred 1-3; most preferred 1 or 2 or 3; if A and B both are (CH 2 CHR 2 O) n2 H or both are (CH 2 CHR 2 O) n3 OCR 3, n2 and n3 may be different or identical in A and B. R 2 each independently represents H or alkyl group with from 1 to 6 carbon atoms, preferably from 1 to 3 carbon atoms, more preferred H, methyl or ethyl, even more preferred H or methyl, most preferred H; R 1 and R 3 are each independently selected from the group consisting of linear or branched C7-C21, preferably C11-C21, more preferred C11-C19, most preferred C11-C17 alkyl groups, and linear or branched C7-C21, preferably C11-C21, more preferred C11-C19, most preferred C11-C17 alkenyl groups; X- represents a counter ion, preferably, an alkyl sulfate group, especially preferred MeSO 4 - and EtSO 4 -, or a halide anion, especially preferred Cl -, or an alkyl carbonate, especially preferred methyl carbonate and ethyl carbonate; and wherein the process comprises step a), wherein a hydroxy alkyl tertiary amine of Formula II wherein A and B each independently represents (CH 2 CHR 2 O) n2 H or (CH 2 CHR 2 O) n3 H and n 1, n 2, n 3 and R 2 are defined as for Formula I above, is reacted with one or more fatty acid oils or a mixture comprising one or more fatty acid oils and one or more fatty acids, wherein the alkyl or alkylene chains of the fatty acid residues correspond to R 1 and R 3 as defined for Formula I above, wherein the transesterification reaction temperature in step a) is in the range of from 140 to 200 degree Celsius, and wherein the process further comprises step b), wherein the reaction product of step a) is reacted with a quaternization agent C-X, wherein C and X are defined as for Formula I above, to obtain the quaternary ammonium compound of Formula I, characterized in that the total amount of the oils to be added in step a) is divided into at least two portions, wherein portion 1 is added to the hydroxy alkyl tertiary amine of Formula II at the start of step a) and portion 2 as well as any further portion is added to the reaction mixture after at least some of the oil of portion 1 has reacted with the hydroxy alkyl tertiary amine according to Formula II.