This new facility marks the company's 50th production site worldwide.
The company said the move highlights its commitment to meeting the increasing demand from mid-range and large livestock farms, as well as feed millers, for high-quality premixes and innovative feed additives.
Spanning 10,000 square meters, the plant has an annual production capacity of 10,000 tons, designed to process vitamins, minerals, and feed additives. The facility will serve customers across Egypt, the Middle East, Southern Europe, and Africa. The producer said the site will enhance its ability to reliably supply its growing customer base while contributing to local economic development.
A representative of DSM-Firmenich told us that this new premix plant will incorporate advanced technologies to boost efficiency and sustainability. The facility will play a vital role in the company's ANH strategy, and is aimed at driving profitable and sustainable business growth. "As part of this approach, we are focused on expanding in key markets and segments while enhancing cost-efficiency, in line with our vitamins transformation program. In parallel, we are advancing the separation of ANH from DSM-Firmenich, while maintaining momentum on our strategic objectives."
Restructuring program
Last year, DSM-Firmenich launched a restructuring initiative in its vitamins business aimed at reducing market volatility and optimizing service levels, expecting an annual Adjusted EBITDA contribution of €200m by 2024. The company has since closed several vitamin production sites and streamlined operations.
In February 2024, the company also announced plans to carve out its ANH business, aiming to unlock its full potential through a different ownership structure, while mitigating exposure to vitamin earnings fluctuations. It anticipates announcing a deal for this separation next year.
Meanwhile, DSM-Firmenich announced increased profitability for the animal nutrition and health division in its H1 2024 financial results, released at the end of July. The business started to benefit from improved profitability in vitamins from Q2.
Contingency plans
Earlier this month, in an interview with FeedNavigator, Silvia Sonneveld, head of DSM-Firmenich's vitamin unit, urged the industry to review and develop contingency plans to ensure a resilient vitamin supply, following production delays caused by a fire at BASF's Ludwigshafen facility.
She highlighted the global food and nutrition security risks posed by disruptions to vitamins A and E, warning of tight supply and price volatility into 2025. With several producers undergoing maintenance shutdowns, Sonneveld emphasized the importance of maintaining proper vitamin levels in animal feed to support profitability and sustainable agriculture, while also addressing the broader risks of supply chain interruptions.
