Achema, a European fertiliser producer, is temporarily suspending its plant operations due to the drastic rise in natural gas prices and uncontrollable increase in fertiliser costs. The company will only maintain production of resins and technical gases. The CEO of Achema, Ramūnas Miliauskas, states that the high prices of natural gas directly impact production costs, making their fertilisers uncompetitive compared to US and Russian producers. Some employees will continue maintenance work while others will be put on standby. Natural gas prices in Europe are currently at record highs and still increasing.
As the price of natural gas in Europe continues to rise drastically and the cost of fertilisers continues to rise uncontrollably, Achema is temporarily suspending the operation of its plant from 1 September. For the time being, only the production of resins and technical gases will be maintained.
"In this market situation, most Western fertiliser producers are forced to shut down their factories and Achema is no exception. The record prices of natural gas directly determine the cost of production, and the prices of our fertilizers are becoming uncompetitive in comparison with the production of US and Russian producers," - says Ramūnas Miliauskas, CEO of Achema.
When the plant is shut down, some of the employees will work to ensure maintenance and protection of the equipment, while the rest will be put on standby.
Natural gas prices in Europe are today at new record highs and still rising. Natural gas is the main raw material for the production of nitrogen fertilisers, accounting for around 70% of the cost of fertiliser.
Translated by Darueber