February 25, 2022

Evonik strengthens world-scale methionine production hub in US

 

Evonik will build a methyl mercaptan plant at its site in Mobile, Alabama, the United States.

Methyl mercaptan is an intermediate in the production of MetAMINO^® (DL-methionine) and is currently sourced from third parties. This backward integration step strengthens Evonik's site in Mobile as a global, best-in-class methionine hub for reliable and cost-optimised supply to North and South American markets. The plant is scheduled to come on stream in the second half of 2024. The investment budget of the project is approximately €150 million (US$168 million) over three years.

"The new methyl mercaptan plant in Mobile is another important step in the consistent implementation of our global methionine asset strategy," said Johann-Caspar Gammelin, head of Evonik's Nutrition & Care division. "We are securing our cash flow from the methionine business to finance our growth with system solutions in nutrition and care."

The core of the methionine asset strategy are its three world-class production hubs in Mobile, Antwerp (Belgium) and Singapore. Together, these hubs serve the expanding global market for DL-methionine. As part of Evonik’s asset strategy, the company's smallest methionine plant at its German site in Wesseling was discontinued in 2021. At the same time, the European MetAMINO^® Verbund was strengthened through investments in intermediates at this site.

The Antwerp and Singapore production hubs are already fully backward integrated. This contributes – just like the current investment in Mobile – to improved supply security and a market-leading cost position. It also facilitates future and highly efficient debottlenecking over the next years.

"In the market, we stand for quality, superior supply reliability and a high level of safety and technology standards in our assets," said Dr. Emmanuel Auer, head of Evonik's Animal Nutrition business line. "The backward integration at Mobile eliminates transportation of hazardous chemicals and shows our continued commitment to responsible care and business sustainability. This ultimately positions us even better as a reliable partner for our customers in the Americas."

The investment is also a building block of the division's sustainability strategy. It will reduce the carbon footprint of DL-methionine from the Mobile site by about 7%, according to Evonik. More than 25,000 tonnes of CO2 equivalents can be saved each year.

Methionine is used in livestock farming to feed animals healthily, efficiently and sustainably. With its science-based approach, Evonik's Animal Nutrition business line develops products, services and system solutions that help supply a growing world population with healthy, high-quality and affordable animal protein.

The Animal Nutrition business line is part of Evonik's Nutrition & Care division and makes a significant contribution to the profitable growth of the Nutrition & Care segment through its self-financing power.

- Evonik