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Press release
Investor Relations
October 1, 2015

Field Trip Animal Nutrition: Evonik expects continued attractive growth

  • “Analyst & Investor Field Trip” focuses on all facets of the Animal Nutrition Business
  • Structural growth drivers ensure a continuously attractive market environment
  • Evonik grows by innovation and investment

 

Today's “Analyst & Investor Field Trip” of Evonik Industries AG at the Antwerp (Belgium) site focuses on the Animal Nutrition Busi-ness Line. The specialty chemicals Group expects that the strong and stable growth of the Animal Nutrition business, exceeding six percent per year, will continue into the future. The main driv-ers are the megatrends of nutrition, globalization, and, in particular, sustainability.

Sustainability as growth driver

The world needs healthy food for a growing population. A key factor is sufficient supply of animal protein, such as meat, fish, eggs, and milk. But this can be sustainable only with effective and resource-conserving agricultural processes.

Amino acids for animal nutrition from Evonik make an important contribution to sustainability. Amino acids, being the building blocks of proteins, are essential for humans and animals. Targeted use of small amounts of these amino acids can substitute large quantities of crude protein from soy bean or rapeseed meal. This reduces resource consumption as well as pollution. As a rule of thumb, the use of about 100,000 metric tons of the amino acid DL-methionine reduces nitrogen emissions by about the same amount, while nitrate emissions into groundwater are reduced by about 790,000 metric tons and ammonia emissions into the air by about 800,000 metric tons. Apart from the growing importance of sustainability, a trend towards increasing professionalization is currently discernible in farming. Farmers all over the world are modernizing their rearing and feeding methods to improve efficiency and profitability. In this context as well, amino acids from Evonik are making an important contribution.

Services strengthen customer loyalty

Evonik differentiates itself from competitors by its global distribution network and broad range of services. In this way Evonik supports nutritionally balanced and economic use of its amino acids, positions itself as a solution provider, and strengthens relations to its customers in the animal feed industry.

Starting point of these services is an analysis of the amino acid content in vegetable feed components used by customers. Depending on the amino acid composition found, Evonik recommends feed formulations and supplementation of individual amino acids. In addition to feed components and formulation concepts, the processes used in the feed mill are key in determining the quality and costs of the feed; Evonik helps here too by introducing special dosing systems for amino acids.

Innovations open up new growth markets

As part of its strategic development, Evonik has selectively ex-panded its amino acid portfolio over the last few years, opening up new growth markets such as aquaculture. This has been achieved by innovative product development for animal species with specific food habits (such as shrimps) or digestive systems (such as ruminants).

But innovation activities in Animal Nutrition go far beyond amino acids. Jointly with DSM Nutritional Products Ltd. Evonik is developing algae-based omega-3 fatty acid products as alternatives to the use of fish oils, particularly in aquaculture and pet foods. The aim is to meet the increasing demand for omega-3 fatty acids in a sustainable manner. The fatty acids are to be produced by biotechnological processes, using marine algae from sustainable feedstock.

Support of market growth by investment

Evonik has in the past already proven to be a reliable partner to its customers by building up new production capacities according to the increasing amino acid demand and implementing these investments as announced.

In order to meet the continually growing demand for DL-methionine in the future, Evonik is now planning to build another world-scale plant in Singapore. The new methionine complex on Jurong Island will have an annual production capacity of 150,000 metric tons and is expected to start operations in 2019. It still requires authorization from the Evonik committees.

All the presentations of Animal Nutrition’s Field Trip are available at www.evonik.com/field-trip-animal-nutrition

Company information

Evonik, the creative industrial group from Germany, is one of the world leaders
in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technol-ogy platforms.

Evonik is active in over 100 countries around the world. In fiscal 2014 more than 33,000 employees generated sales of around €12.9 billion and an oper-ating profit (adjusted EBITDA) of about €1.9 billion.

Disclaimer

In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual re-sults or developments may vary, depending on changes in the operating envi-ronment. Neither Evonik Industries AG nor its group companies assume an obli-gation to update the forecasts, expectations or statements contained in this release.