OOO DonBioTech, a joint venture between Germany's Evonik Industries and the Russian Varshavsky Group, will construct a new Biolys manufacturing plant in Volgodonsk, Russia, following Evonik's executive board approval.
The facility will use Evonik's fermentation technology and wheat obtained from the Rostov region.
The plant, with a capacity of around 100,000mt of Biolys, is expected to come on stream in 2014.
Patrik Wohlhauser, Evonik Industries consumer executive board member, said Russia will become an important market for Biolys, given that the demand there for amino acids used in animal feed has experienced healthy growth over the years.
"The special biotech-based L-lysine, which Evonik markets under the name of Biolys, is benefitting from growth in worldwide meat consumption," Wohlhauser added.
JSC Russian Agricultural Bank is interested in financing the project, according to the Evonik.
Walter Pfefferle, Evonik Biolys business head, said the Rostov region allows the company to safeguard raw material supplies and also enables backward integration, so that large parts of the value chain remain with the company.
''Another advantage of the Volgodonsk location is the outstanding support we are receiving from the municipal authorities there and from those in the greater Rostov region," Pfefferle added.
Biolys is an effective source of the L-lysine used in the optimisation of animal feed efficiency.