Azomures begins preparations for the temporary stopping of the production
Targu Mures at
December 6th, 2021
AZOMUREȘ BEGINS PREPARATIONS FOR THE TEMPORARY STOPPING OF THE PRODUCTION ACTIVITY OF AGRICULTURAL AND INDUSTRIAL FERTILIZERS
Azomures Targu Mures, the most important producer of fertilizers for the Romanian agriculture and industrial usage in Romania, informs that it is facing an exceptional situation due to the very high prices for energy, natural gas and electricity. This marks the beginning of preparations for the temporary shutdown of production activities.
The general manager of Azomureș, Harri Kiiski, states that “the high level of the price being asked by the suppliers for the main raw material, methane gas, no longer allows us to sustainably continue the activity. As a result, at European level, other industrial platforms have completely stopped or severely restricted production activities. The resumption of our activity depends on the price of methane gas and its availability in the market. The management decision, approved by the Board of Directors, does not have immediate effects on the employees' activity. We maintain the normal work schedule, we will focus on maintenance work that can be performed in the cold, we will secure and maintain critical equipment and we will continue to carry out the projects in which we are involved. We expect January and February to be the critical periods we need to overcome, though with uncertain natural gas situation, we will remain flexible through all of Q1.”
More generally, we note that the current crisis in the energy market is affecting the fertilizer industry in Europe and around the globe. Countries such as Russia, China, Turkey and Egypt have restricted exports. Coupled with low local production, Europe is now facing a crisis in agriculture and industry. The European Commission has recognized the role of industry in ensuring food security at the continental level, but left it to each member state to take the necessary measures. Azomureș is one of the largest consumers of natural gas in Romania, approximately 10% of national consumption, and provides 50% of fertilizers used on Romanian farms and is counted on for consistent supply to a large number of other industrial usages. It is one of the pillars of food security and an important contributor to the supply chain in the agricultural area of Romania.
It is an important moment for all the industries in Romania that use methane gas as a raw material. We are making every effort to bring the situation back to normal, despite the fact that we are also the victims of an unfavourable international context. We are asking the Romanian Government and Parliament to act upon the liberties afforded by the European policy frameworks to alleviate the problems of gas shortage and high energy prices within a timely fashion so that Romania’s food security is not compromised in 2022.
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