Evonik Industries AG said Wednesday that it has tabled a $65 million, 10-job expansion after reaching a long-term purchase agreement with the suppliers of a key ingredient of a pig and poultry feed additive it makes in Theodore.

"The good news for us is that it really improves the competitiveness of the site and improves the sustainability of the (feed additive) business here in Mobile," said Tom Bates, Theodore site manager and head of the chemical maker's North American region. "As a direct result, it improves the job security of the people in (that) business."

About 700 people work at the Theodore site, including 123 involved in the production of methionine, the feed additive. Evonik makes the additive at three sites worldwide.

Evonik had considered facility upgrades to make methyl mercaptan, one of two ingredients in methionine. The other ingredient, acrolein, is made on site in

Theodore.

But Bates said longtime methyl mercaptan suppliers Arkema Inc. and Chevron Phillips Chemical Company LP "made us an offer we couldn't refuse, an attractive offer which was really a win-win for everybody."

Details of that offer are confidential, he said.

Evonik announced in May 2008 that it was competing among three plants worldwide for the expansion, securing a promise of $4.8 million in sales and property tax breaks, among other incentives, at the time.

Sites in Antwerp, Belgium, and Wesseling, Germany, were also being considered for similar expansions, and Bates said Wednesday's announcement was "independent of any expansions in Europe." Original story.