Volzhsky Orgsynthese, Russia’s only feed-grade methionine manufacturer, is expected to be sold to a private investor during a competitive bidding procedure, the Russian government revealed.
The starting price for Volzhsky Orgsynthese, which includes a methionine plant with a capacity of 25,000-26,000 tonnes/year, is set at Rub 20.9 billion (approximately $230 million).
The auction winner will be required to conduct a comprehensive modernization of the plant's production capacities, including a 20,000 tonne/year expansion of the existing potassium butyl xanthate production. Furthermore, the facility is set to introduce the production of several new industrial chemicals, such as thiuram, tetrabenzylthiuram disulfide, and sodium xanthates. However, Volzhsky Orgsynthese's development plan does not include concrete changes to methionine production at this stage.
In 2022, Andrei Freiman, head of the methionine sales department at Volzhsky Orgsynthese, revealed that the company had suspended exports of methionine due to Western sanctions against Russia, keeping deliveries of only small product quantities to customers in Belarus and Kazakhstan. The restrictions have not discouraged the company from executing its development plans, which, according to Freiman at that time, involved a "significant increase" in feed-grade methionine production. In 2023, control over the company’s assets was seized by the Russian authorities. Following the move, former owner Alexander Sobolevsky warned about the dire consequences it would entail for Volzhsky Orgsynthese's operations.
Volzhsky Orgsynthese may eventually seek to boost methionine production to 57,000 tonnes/year, a source in the feed industry said. However, the prospects of expanding methionine capacities at this point look vague, a second source familiar with the matter disclosed.
Firstly, the outcome of the competitive bidding procedure seems uncertain since the starting price appears too high for Volzhsky Orgsynthese, the second source said. Furthermore, given the circumstances, the source emphasized that investments in methionine production are not an issue for the foreseeable future.
