LITHUANIAN FERTILIZERS TURNED OUT TO BE UNCOMPETITIVE

Achema, which has gained fame as the largest enterprise in the Baltic States for the production of nitrogen fertilizers, stops working from September 2022. This was announced by the head of the company Ramunas Miliauskas in his speech on Lithuanian radio. The company, whose production is located in the city of Jonava, turned out to be uncompetitive in the face of rising European natural gas prices.

According to the director of the company, fertilizers from Lithuania are inferior to similar products from Russia and the USA in terms of the cost of raw materials. At the same time, the company was the largest consumer of gas in the country. The cost of fuel takes up about 75% of the cost of fertilizers received.

Therefore, their production in such conditions becomes unprofitable.

By the beginning of September, according to the head of Achema, the company will operate only equipment for the production of technical gases and resins. The management plans to send all employees who are not engaged in its maintenance on vacation.

According to experts, the Baltic fertilizer producer was not the only chemical company in Europe that publicly announced the cessation of production due to natural gas prices. Earlier, a similar decision was made by the Polish holding Grupa Azoty. The German concern BASF is still afloat, although its management also allowed the closure of the enterprise in case of a long-term fuel shortage.