Evonik signs cooperation agreement with Rostov region

Evonik and the government of the Russian Rostov Region used the opportunity of a reception at the Russian embassy in Berlin to reaffirm their cooperation. A corresponding memorandum of understanding was signed in the presence of Ilse Aigner, the German Minister of Agriculture, Nicolai Federov, her Russian counterpart, and Patrik Wohlhauser, member of the Executive Board of Evonik Industries AG.

The objective is to establish a facility for the production of Biolys in Volgodonsk through the joint venture DonBioTech. The operative partners of the joint venture are Evonik Industries AG as a minority shareholder and the Russian Varshavsky Group.

The joint venture will use Evonik fermentation technology in the new Bioly plant to produce L-lysine. Biolysis considered a highly effective source of lysine in animal feed for swine and poultry.

The new facility is to become operational in 2014 and will have an annual capacity of approx. 100,000 metric tons of Biolys®. The raw material to be processed by the joint venture will consist of wheat grown in the Rostov Region.

Governor Golubev has contractually guaranteed his full support for the joint venture. Dr. Reiner Beste, head of the Health & Nutrition Business Unit, and Vladimir Kudryashov, the executive director of the OOO DonBioTech joint venture also signed the contract.

“This effort secures the raw material supply, while the backwards integration will cover a larger part of the supply chain. That is essential for positioning Evonik in the important Russian market.” He praised the excellent support for the implementation of the project provided by the city of Volgodonsk and the Rostov Region.