Evonik will cease amino acid production at its Hungarian Kaba site by April 2018 due to market competition. Despite efforts to optimize production, it is no longer economically viable. The company is working with stakeholders to ensure a smooth transition for employees and explore future site use.
Evonik will stop its amino acid production at its Hungarian Kaba site by the end of April 2018. There Evonik Agroferm Zrt., a subsidiary of Evonik, currently employs about 120 people.
The decision was prompted by intense and increasing competition in the market for the amino acid L-threonine, produced by Evonik in Kaba under the ThreAMINO® brand name. “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,” says Dr. Emmanuel Auer, head of Evonik’s Animal Nutrition Business Line.
Possible alternatives to the shutdown were explored in depth before taking the decision. Supply of ThreAMINO® to Evonik’s global customers remains assured. ThreAMINO® is added to animal feed to ensure 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 redundancies in the most socially acceptable manner possible.
The further use of the site will be explored and decided on in close cooperation with the Hungarian authorities after production has stopped.