Evonik Invests in Alabama Livestock Feed Chain
As part of an expansion project for its US site in Theodore, Alabama, German specialty chemicals producer Evonik plans to invest $176.5 million in a new methyl mercaptan plant. The chemical is used to make MetAmino (DL-methionine), which is used in livestock feed.
The new plant due on stream in the second half of 2024 stands to receive attractive investment aid from local authorities. The Mobile County Commission was expected to vote this week on a $100,000 incentive toward the project, reports said. The project is also eligible for Investment credit offered through the Alabama Department of Commerce and the Alabama Industrial Development Training Services.
Evonik has been active in Alabama for 40 years, first investing there as Degussa. Its Theodore site currently employs 750 people. “The significant investment the company is making in Alabama will not only solidify its industrial presence in Mobile but will allow us to continue to build on this long-standing partnership,” the state’s governor, Kay Ivey, said.
The state expects the investment to bring in $24 million in fresh revenue for the next 20 year as well as adding an estimated $26.8 million in new construction and direct permanent jobs over the next two decades.
The German company said the Theodore project will strengthen the site as a global methionine hub for reliable and cost-optimized supply to markets in the Americas. Raw materials from third-party suppliers are currently used to produce methionine.
Emmanuel Auer, head of Evonik’s Animal Nutrition business line, said the backward integration eliminates transportation of hazardous chemicals and shows the chemical producer’s continued commitment to responsible care and business sustainability. The investment is projected to reduce the carbon footprint of production by about 7%, with more than 25,000 t/y of CO2 equivalents being saved annually.
Author: Dede Williams, Freelance Journalist
