Evonik to hike price of its L-threonine additive

German chemical group Evonik is raising the price of its L-threonine 98.5% feed grade product, ThreAMINO.

The price will rise by up to 15% per kilogram of the additive, said the amino acid producer.

The increase is to take effect immediately.

The company, however, said existing contracts and supply agreements for the feed additive would be honored. 

It did not reveal the factors behind the price hike.

In releasing its financial results for Q4 and the full year 2015 last week, Evonik predicted adjusted earnings for this year could dip by as much as 19%, with CEO, Klaus Engel, citing uncertainty over economic growth in China and Brazil and elsewhere.

“Growth rates in the US are being questioned more and more,” he added.

Engel said the expectation was that adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for Evonik in 2016 would be in and around the €2bn to €2.2bn mark, down from €2.47bn in 2015.