European Chemical Industry News & Insights

Evonik to Close Hungarian Kaba Site

At a glance
  • Production at Kaba site ends by April 2018
  • 120 employees affected by closure
  • Competition in L-threonine market prompted decision
  • Supply of ThreAMINO® to global customers remains assured

Closure of Kaba Site

Evonik will cease amino acid production at its Kaba site in Hungary by the end of April 2018. The site, operated by Evonik Agroferm Zrt., employs approximately 120 people.

Reason for Closure

The decision is driven by intense and increasing competition in the market for the amino acid L-threonine, produced under the ThreAMINO® brand. Despite ongoing optimizations, maintaining economic production at Kaba is no longer feasible.

Exploration of Alternatives

Before deciding on the shutdown, Evonik explored possible alternatives in depth. The supply of ThreAMINO® to global customers will remain assured, ensuring an optimally balanced supply of amino acids in animal feed.

Handling Redundancies

Evonik is collaborating closely with the works council of Evonik Agroferm Zrt., the local union, and Hungarian authorities to manage the forthcoming redundancies in a socially responsible manner.

Future Use of the Site

The future use of the Kaba site will be explored and decided upon in cooperation with Hungarian authorities after production ceases.