BREAKING First major producer hit by energy price hikes: Azomures announces temporary halt of fertilizer production due to high gas and electricity prices

Platforma Azomures

Energy prices have also started to affect the industrial colonies in Romania. Azomures Targu Mures, the largest producer of fertilizers used by agriculture and industry, announces that it is preparing to temporarily halt production activities due to the very high price of energy, natural gas and electricity.

Azomures CEO Harri Kiiski says that “the high price charged by suppliers for the main raw material, methane gas, no longer allows us to continue our activities on a sustainable basis. For this reason, at European level, other industrial platforms have also completely stopped or severely restricted their production activities. The resumption of activity depends on the price of methane gas and its availability on the market. The management decision, approved by the Board of Directors, has no immediate effect on employees. Normal working hours will be maintained, we will focus on maintenance work that can be carried out during the cold period, we will secure and keep critical equipment in operation, 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, although the uncertain situation in the gas market means we will remain flexible throughout the first quarter of 2022.”

Overall, the current energy market crisis is affecting the fertilizer industry in Europe and around the world. Countries such as Russia, China, Turkey and Egypt have restricted exports. Along with low local production, Europe is now facing a crisis in agriculture and industry. The European Commission has recognized the role of the fertilizer industry in ensuring continental food security, but has left it up to each member state to take the necessary measures.

Azomures is one of the largest consumers of natural gas in Romania, accounting for around 10% of national consumption, supplies 50% of the fertilizers used on Romanian farms and provides a constant supply to a large number of companies in other industries.

“This is an important moment for all 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 victims of an unfavorable international context. We call on the Romanian Government and Parliament to act in line with European legislation to alleviate the problem of gas and high energy prices in due time, so that Romania’s food security is not compromised in 2022,” the company says.

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