December 16, 2003

Degussa to Increase Animal Feed Amino Acid Production Capacity

Degussa has plans to strengthen its leading position in the amino acids for animal feeds market. The company is considering expanding its 90,000 tons/y lysine plant at Blair, NE. In addition it plans to build a 35,000 tons/y threonine plant, probably in 2005. Degussa is also considering producing tryptophan, but this project is still at a laboratory scale.

Currently, Degussa already operates a 10,000 tons/year threonine plant at Slovenska Lupca, Slovakia.

Degussa's 2002 feed additives sales were EUR 568 Million in 2002.

In Nov 2003, Degussa started building a 150,000 tons/year methionine plant in Antwerp, Belgium. Degussa is investing EUR 350 M in the facility, which is due to come onstream in 2005. When it comes onstream Degussa's total methionine capacity will be 400,000 tons/year. Degussa currently operates three 80,000 tons/year methionine plants worldwide, one in Antwerp, Belgium, one in Wesseling, Germany and one in Mobile, AL.

Degussa is the only producer worldwide which produces all three key feed amino acids, methionine, lysine and threonine. It is the world leader in the methionine market, having a 30% market share. Other methionine market players are Sumitomo Chemical, Novus International, Adisseo and Nippon Soda. In the lysine market its competitors are BASF, Ajinomoto and Archer Daniels Midland.

Global markets for lysine and methionine are growing at 5% /year and the market threonine at 10% /year. Degussa exited the vitamin B market in Sep 2003.