Romania's main fertiliser producer announces partial resumption of production
Azomures announced that it has decided to resume production of fertilizer and other industrial products, yet it will exercise caution and will work under production capacity until the Government confirms the subsidy package. The company mentions that 4 months have already passed since the decision to temporarily halt the production of fertilizer, on December 17, 2021, in the context of volatility on the natural gas market.
"In this entire period, Azomures together with Fertilizers Europe have drawn the attention of the European Union and the Romanian Government that the energy shock may lead to a crisis of fertilizer and food. Especially in the context of restrictions of Ukrainian and Russian exports through the Black Sea, experts estimate that 30% of the world exports of cereal are directly affected and this has an additional effect in the lack of fertilizer. At the start of the month of April, the European Commission intervened to try and prevent this food crisis, establishing a legal framework in which member-states may support companies essential for agriculture. Poland (836 million EUR) and Germany (20 billion EUR) have already offered substantial aid packages, with special provisions for fertilizer producers," the company press release mentions.
According to Azomures, the Romanian Government hasn't established anything concrete yet, but the Ministries of Energy, Economy and Agriculture are working in consultation with representatives of the industry to launch an aid package similar to that launched in other European countries.
"All of this leads to the partial resumption of production at Azomures. Supply with natural gas remains difficult, with price levels that lead to increased costs for fertilizer, even with the aid of the Government. Therefore, until the confirmation of the subsidy package, we will remain cautious and under the normal production capacity, but at the same time we believe it's essential for a successful 2022-2023 agricultural year not to postpone the moment of restart. We are anticipating a limited production of Ammonium nitrate, calcium ammonium nitrate, urea and melamine in the first period, with the production of complex fertilizer of the NPK type (Nitrogen, Phosphorus, Potassium) to start in the coming period," said the general director of Azomures, Harri Kiiski, quoted in the release.
Source: Agerpres