Evonik Industries AG intends to build a facility for the biotechnology production of Biolys in the Brazilian town of Castro in the state of Paraná.
Biolys is a highly effective source of the amino acid L-lysine and is used as a feed additive in modern animal nutrition. The plant will be built at a site owned by the U.S.-based company Cargill and is scheduled to become operational in 2014. Both companies have signed a letter of intent on June 15th 2012, according to which Cargill will provide the infrastructure at the site and will supply Evonik with locally manufactured raw materials.
The Castro site was selected because of its excellent raw material supply, outstanding logistical connections, and closeness to local markets. "We have seen rising demand for Biolys in Latin America, and particularly in Brazil for a number of years," said Patrik Wohlhauser, member of the Executive Board of Evonik, about the project. "By investing locally, we move closer to customers, strengthen our position in these important Biolys markets, and lay the foundation for further growth in the area of feed amino acids."
The Brazilian project is an extension of the successful cooperation of Evonik and Cargill, which began in Blair (Nebraska, USA) where Evonik also produces at a site owned by Cargill. Parallel to the planned investment in Brazil, Evonik is currently doubling its Biolys capacities in Blair, where it purchases site and logistical services as well as source materials from Cargill. "Our cooperation with Cargill is excellent," says Dr. Walter Pfefferle, head of the Bioproducts Business Line, who is responsible for the Biolys business of Evonik.
Biolys, a biotechnology product made from renewable resources, is globally known as a highly effective source of L-lysine for animal feed, which helps to sustainably reduce cost in feed production and animal breeding. As Evonik has recently documented in a life cycle analysis certified by TÜV Rhineland, the product also benefits the environment since protein supply in animal feed that is supplemented by Biolys® is a particularly environmentally sound concept for the adequate, healthy nutrition of animals.
"Our products are not just feed additives, they are a nutritional concept that allows for optimal animal feeding with the best possible use of natural acreage and grains," notes Dr. Reiner Beste, head of the Evonik Health & Nutrition Business Unit. "This is our contribution to meet the growing demand for meat, dairy, eggs, and fish in a sustainable manner and the rising demand for our amino acids shows that we are on the right track."