Yara International ASA Update
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Yara International in Norway has become the latest fertilizer producer to reduce ammonia production due to record high natural gas prices, as the energy crisis could hurt food supplies.
Some state-owned groups said on Friday that 40 percent of ammonia production capacity would be cut by next week to protect margins after soaring gas prices reduced profitability.
Yarra, one of the world’s largest fertilizer producers, closed two large fertilizer plants in the UK a day ago, following rival CF Industries.
Ammonia is used to produce ammonium nitrate, one of the most widely used fertilizers. Derived from natural gas and nitrogen. With soaring gas prices, producers are fighting to pass costs on to their customers quickly enough.
Of Yarra’s production of 4.9 million tonnes of ammonia in Europe, we plan to reduce production by approximately 2 million tonnes in the Netherlands, Italy, the United Kingdom and France. Production capacity was further reduced due to planned maintenance of factories in Brunsbüttel, Germany and Porsgrun, Norway.
The company said it would source some of the required ammonia from outside Europe or from a third party. “The impact on the finished product is currently small,” he added.
The length of the cut depends on the prices of two major inputs of ammonia, natural gas and nitrogen, the company said.
Norwegian Yarra becomes the latest fertilizer maker to reduce production
Source link Norwegian Yarra becomes the latest fertilizer maker to reduce production