Hungary: Company Strategy Evonik to Shut Down Amino Acid Facility in Kaba
The move was triggered owing to intense competition in the region for amino acid L-threonine which is produced by the company. Production at the site is expected to stop by April 2018.
Kaba/Hungary – Evonik will stop its amino acid production at its Hungarian Kaba site by the end of April 2018. Evonik Agroferm, 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 Thre Amino brand name.
Possible alternatives to the shutdown were explored in depth before taking the decision. Supply of Thre Amino to Evonik’s global customers remains assured. Thre Amino 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, 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.