Evonik's credit agreement with the Russian Agricultural Bank, together with receiving of a construction permit by the Russian authorities, represent two key milestones for the lysine plant project in Russia.
The company and Russia's Varshavsky Group are shareholders in the joint venture named OOO DonBioTech, which will see the lysine plant being built in Volgodonsk. The plant will begin operations in 2015 and have an annual capacity of about 100,000 tonnes.
"This fulfills the most important prerequisites for moving the project forward quickly," said Dr. Reiner Beste, head of the Health & Nutrition business unit. "The new plant will strengthen our position in the Russian market and help make pork and poultry production in Russia more efficient and sustainable."
The lysine produced will be of the form Biolys®, which is considered to be an extremely effective source of lysine in animal feeds for pigs and poultry. Wheat from the Rostov region will be used as a raw material, and the process will employ modern fermentation technology. "In this way we are securing our supply of raw materials and using backward integration to cover a major portion of the value-added chain," Beste explained.
Amino acids for animal nutrition - especially MetAMINO® (DL-methionine) - represent a core business of Evonik, and one that is currently undergoing major expansion. For TrypAMINO® (L-tryptophan) and Biolys (a source of L-lysine), additional capacity is being built in Europe and the US, and a new methionine plant is currently under construction in Singapore.
Evonik is the only company in the world that produces and markets the most important four essential amino acids for advanced animal nutrition: Biolys, MetAMINO, TrypAMINO, and ThreAMINO® (L-threonine).