Fertiliser makers cut output as gas prices surge

Norway’s Yara (YAR.OL), one of the world’s largest fertiliser makers, is cutting ammonia production in Europe further because of the surge in gas prices, following other manufacturers.

Below are some of the fertiliser producers that have cut their output:

BASF

The world’s largest chemical company said in July it would cutting its ammonia production further.

It had already cut output at its headquarters in Ludwigshafen and at its large chemical complex in Antwerp, Belgium, last September.

Borealis

Austrian plastics group Borealis, a subsidiary of energy group OMV (OMVV.VI), is reducing and stopping production of some fertiliser plants in different EU sites for economic reasons, a spokesperson told Reuters in an email.

The company did not share further details.

CF Fertilisers UK

The UK subsidiary of CF Industries Holdings Inc (CF.N) said on Wednesday it would temporarily halt ammonia production at its Billingham Complex due to high natural gas and carbon prices.

Grupa Azoty (ATTP.WA)

Poland’s biggest chemicals firm said on Monday it was halting production of nitrogen fertilisers and cutting ammonium output to about 10 per cent capacity at its Pulawy subsidiary.

It reduced fertiliser production at its Kedzierzyn subsidiary to 43 per cent of capacity, as of Wednesday.

PKN Orlen (ATTP.WA)

The Polish refiner’s Anwil subsidiary said on Monday it had temporarily halted production of nitrogen fertilisers.

It said it will perform maintenance and other work during the standstill and plans to resume production once the gas market stabilises.

Yara (YAR.OL)

With its latest cut, the company will have lowered its capacity by the annual equivalent of 3.1 million tonnes of ammonia and 4 million tonnes of finished products, it said.

Yara’s European ammonia capacity use will be about 35 per cent following the change.

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