ESSEN, GERMANY — Evonik, a specialty chemicals company, shared a transformation of its Animal Nutrition business operations. The company’s Animal Nutrition business will be split into an amino acids segment and a specialty nutrition business that will operate separately from one another.

The company also shared plans to optimize the production of its MetAMINO® (DL-methionine), as well as reduce its environmental footprint. According to Evonik, these moves will help save €200 million ($218.4 million USD), annually, beginning this fiscal year with the full amount to be reached in 2025. This also includes a reduction of about 200 jobs throughout the globe.

“We are systematically implementing a plan that will develop our Animal Nutrition business, so it continues to grow and succeed in our markets,” said Johann-Caspar Gammelin, president of Evonik's Nutrition & Care division.

According to Evonik, though the amino acids market offers strong growth and a sustainability profile, it comes with many challenges, like rising raw material and energy costs. To combat this, the company will streamline its amino acids business, specifically focusing on efficiency and cost leadership.

The company’s specialty nutrition segment, which offers functional feed additives and digital tools, will expand, adding solutions for poultry, swine and ruminants.

“By transforming our operating models and by executing our global asset strategy at our three world-scale MetAMINO® production hubs, we will secure our competitiveness in the short term and our leading position in animal nutrition and animal health solutions in the long term,” said Gaetano Blanda, Ph.D., head of the Animal Nutrition business line.

Alongside this news, Evonik also detailed several operational expansions. The company is currently constructing a new plant in Mobile, Ala., which will produce MetAMINO® precursor, methyl mercaptan. The facility is expected to strengthen Evonik’s ability to offer reliable and cost-optimized solutions, as well as reduce its carbon footprint. In Singapore, the company invested in processing optimization, expanding its annual capacity by 40,000 tonnes and further reducing its carbon footprint by 6%.

Read more news from pet food and treat industry suppliers.