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Evonik invests in methionine production for dairy cows

Essen, August 12, 2014

・ Company to construct a plant to produce Mepron® in Mobile (Alabama, USA)
・ Additional growth opportunities for the global amino acid business seen
・ Says Executive Board member Patrik Wohlhauser, "This investment strengthens our position as the world's leading supplier of amino acids." 

Essen/Mobile. Evonik Industries has begun construction of a new plant to produce Mepron® in Mobile (Alabama, USA). Mepron® is a special Evonik formulation of the amino acid methionine that is used in dairy cow nutrition. A special coating protects the amino acid from undesired degradation in the rumen. The new plant is scheduled for completion in the second half of 2015. The investment is in the low double-digit-million-euro range.

Evonik Executive Board member and Chief Operating Officer Patrik Wohlhauser explains, "The investment strengthens our position as the world's leading supplier of amino acids. We continue our strategy of offering amino acids also for special applications in addition to MetAMINO®, which is used mainly in poultry and pig feed. This opens up new growth opportunities for our amino acid business."

"The new plant for Mepron® will give us a direct presence in the important US dairy cow market," says Dr. Reiner Beste, Head of Evonik's Health & Nutrition Business Unit. The USA, which has the world's largest number of high yielding dairy cows, is the most important sales region for Mepron®. A similar potential exists in the European Union. The United States are responsible for about 12.5 percent of the global milk production.

Mepron® improves profitability of milk production

When Mepron® is used in dairy cow rations, farmers can reduce the amount of crude protein in the feed with no adverse effect on performance. This lowers the total feed costs for the producer and increases the profitability of dairy cow farming.

Methionine is one of the essential amino acids that higher organisms need to ingest. If dairy cows lack methionine, they cannot utilize their feed protein properly. The main application for Mepron® is feed for high yielding dairy cows. These animals have an especially high demand for methionine, which is provided in conventional rations through high amounts of protein in the feed. The number of high yielding dairy cows is increasing throughout the world. One of the reasons for this is the improvement of the efficiency of farming.

In addition, the environmentally compatible production of agricultural products conserving resources is becoming more important for ecological reasons. Feed rations that are optimized on the basis of amino acids relieve the animal's metabolism and —because of the lower nitrogen excretion — also the environment.

Evonik is the only company in the world that produces and markets the four most important amino acids that are required in advanced animal feed: MetAMINO® (DL-methionine), Mepron® (DL-methionine for ruminants), DL-Methionine for Aquaculture®, Biolys® (L-lysine source), ThreAMINO® (L-threonine), and TrypAMINO® (L-tryptophan). As a solution provider, the Group also supports its customers with comprehensive professional advice, tailored services, and a worldwide sales organization for all amino acid products. 


Company information
Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms.

Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.0 billion. 


Disclaimer
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.

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