Poland’s biggest chemicals company, Grupa Azoty SA, has stopped making some of its key products such as nitrogen fertilizers and caprolactam, and trimmed output of ammonia because of record gas prices.
“The current situation on natural gas market that determines profitability of the production is exceptional, fully independent of the company and was not possible to predict earlier,” Grupa Azoty said in a statement Tuesday. It didn’t say how long the measures would last.
The state-controlled company had until now tried to avoid curtailing fertilizer production, even as European gas prices rose more than four fold this year due to reduced supplies from Russia, which triggered an energy crisis. Yara International ASA, Azoty’s larger peer, curbed production last month.
Grupa Azoty describes itself as the second-biggest producer of mineral fertilizers in the European Union. The company is among the largest buyers of natural gas in Poland, consuming more than 20 gigawatt hours of the fuel every year.
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