Evonik announced April 3 that it will stop amino acid production by the end of April at its site in Kaba, Hungary, where its subsidiary Evonik Agroferm Zrt. currently employs about 120 people.
The decision was prompted by intense and increasing competition in the market for the amino acid L-threonine, which Evonik produces in Kaba under the ThreAMINO brand name, the company said.
“Despite considerable and continual optimizations, it is no longer possible for Evonik to maintain economic production in Kaba over the long term. Therefore, we have decided to stop production in Kaba, which is in line with our strategy to secure a leading position for our amino acid business,” said Dr. Emmanuel Auer, head of Evonik’s Animal Nutrition Business Line.
Possible alternatives to the shutdown were explored in depth before making the final decision. The supply of ThreAMINO to Evonik’s global customers remains assured, the company noted. ThreAMINO is added to animal feed to deliver an optimally balanced supply of amino acids.
Evonik is working in close conjunction with the works council of Evonik Agroferm Zrt., the local union and Hungarian authorities to handle the forthcoming gradual redundancies in the most socially acceptable manner possible.
Further use of the site will be explored and decided on in close cooperation with the Hungarian authorities after production has stopped.