June 10, 2008
 
Evonik mulls US$65 million methionine intermediate plant in the US
 
 
Essen, Germany-based Evonik Industries AG (formerly Degussa), is proceeding on schedule with its considerations for the construction of a US$65 million methyl mercaptan plant at its site in Theodore, Alabama, US.

Methyl mercaptan is a building block for the amino acid DL-methionine, which is produced at Evonik's site in Theodore.

The results of the basic engineering and feasibility studies will be available in the coming months, and tax relief for the project in Alabama has already been approved.

Evonik intends to make a decision on the construction of the plant this year.

Dr. Klaus Engel, member of the Executive Board of Evonik Industries responsible for the Chemicals Business Area, said the company's methionine activities are a significant part of its specialty chemicals portfolio.

By expanding backward integration, the business would be strengthened further.

The concept of backward integration includes supplying Evonik's DL-methionine plants with all key intermediates such as acrolein and methyl mercaptan from in-house production.

Evonik has been successfully doing this at its DL-methionine facilities in Antwerp (Belgium) and Wesseling (Germany).

Evonik anticipates that building the plant in Theodore could bring substantial savings in production and freight costs.

The ability to integrate the methyl mercaptan plant directly into the present acrolein production could leverage further synergies.

"We see the plans for a methyl mercaptan facility as preparation for expanding DL-methionine capacity further in Theodore," says Engel.

DL-methionine is an essential amino acid for healthy and environment-friendly nutrition of livestock, especially pigs and poultry.

Evonik Industries is the world's only company to produce and market all four main amino acids for animal nutrition: DL-methionine, L-lysine (Biolys), L-threonine and L-tryptophan.