Evonik invests in the feed amino acid L-lysine in Brazil and Russia

Investments of approx. €350 million

20-Jun-2012 - Brazil

Evonik plans to construct new facilities for the biotechnology production of its Biolys® feed additive (source of L-lysine) in the growth markets of South America and Eastern Europe. Work is also underway to expand the production facility at the Blair site in the U.S., with completion expected by the third quarter of this year. Total investment volume will amount to approximately €350 million.

Evonik plans to create new capacities for Biolys® of nearly 200 000 mt per year in Brazil and Russia. While Evonik will produce some 100 000 mt of Biolys® a year as part of the Russian joint venture OOO DonBioTech in Volgodonsk in the Rostov region from 2014, the company is also building a plant at the Castro site owned by the U.S. company Cargill in the Brazilian state of Paraná, which is also expected to become operational by 2014. The advantage of both sites lies in the excellent availability of raw materials. The Russian plant will rely on wheat from the Rostov region and the source material to be used in Brazil will be corn.

"The construction of the new facilities is part of the growth strategy of Evonik," explains Dr. Klaus Engel, the Chairman of the Executive Board of Evonik Industries. "It is intended to significantly expand our market position and competitive standing for the feed amino acid L-lysine."

Both new facilities are in line with the mega trends health and nutrition. As the world’s population grows, so does the demand for meat, fish, dairy, and eggs. As a consequence, feed production is increasingly relying on amino acids to supplement feed.

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