November 5, 2014


New Evonik methionine plant opens in Singapore, initially runs at 60% capacity
 

 

Senior Evonik officials briefing the media at the opening of the company's methionine plant in Singapore.


Evonik's largest methionine plant opened in Singapore on November 4 and now operates at 60% capacity.


The plant, on Jurong Island in Singapore, was built for an annual capacity of up to 150,000 tonnes, raising the company's global annual methionine production capacity to 580,000 tonnes.


Dr. Reiner Beste, head of Evonik's Health & Nutrition Business Unit, told the media at the opening ceremony that the plant currently operates at 60% capacity, gradually ramping up its production.


Painting a bright outlook for DL-methionine, he assured the market that the plant's current output is according to schedule.


Complete with backward integration, the Singapore plant is the largest single investment for Evonik at over EUR500 million (US$626 million).


Dr. Beste believes that DL-methionine is the most efficient source of methionine in the market, and provides the highest value for Evonik's customers. An alternative form of methionine manufactured by some companies is hydroxyl analogue, MHA.


"Clearly MHA has a lower market share right now," Dr. Beste said. "We think that MHA has a market share of about 30%, while DL-methionine has the rest. And from announcements of other investment projects made, one can see that the trend is shifting towards DL-methionine."


Progress in feed technology, rapid population growth and rising consumption of meat in the region, particularly in China and Indonesia, are fuelling Asia's high methionine demand, according to him.

 

Following a force majeure announcement in the United States, Dr. Beste also dispelled rumours that the company's methionine production in the country had been disrupted and might affect prices in Asia, adding that the same might not be said of some other companies in the US.


In a press statement issued shortly before its opening, Dr. Klaus Engel, chairman of the Executive Board of Evonik Industries, described the Singapore facility as "the most modern of its kind and the first world-scale methionine plant in Asia.
 

Evonik markets DL-methionine under the MetAMINO® brand.


"Methionine is one of our core businesses and Asia is the fastest-growing methionine market in the world. This is why we decided to build here (in Singapore)," Dr. Engel said.


MetAMINO® and all strategically important precursors will be produced in the new methionine complex.
 
The main reasons for choosing Singapore as the site for the new plant in Asia were the excellent local logistics, the business-friendly, stable environment, and the high level of education of its workforce, Dr. Engel said.


The new production complex is expected to create around 200 jobs for highly qualified individuals.

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