The Lithuanian plant Achema, the largest producer of nitrogen fertilizers in the Baltic States, has warned that it will stop operations on September 1 due to rising gas prices and an unmanageable increase in production costs.

The company has not been operating at full capacity since last autumn. From September, it will leave only the production of soil and technical gas in operation.

Achema is the largest consumer of natural gas in Lithuania.

"Record prices for natural gas directly affect the cost of production, prices for our fertilizers become uncompetitive compared to products from Russia and the United States. In such a situation on the market, most Western fertilizer producers are forced to stop their plants, Achema is no exception," he said. general director Ramunas Miliauskas.

After the shutdown of the plant, part of the staff will service the equipment, while the rest of the workers will be sent to idle time.

In July, Swedbank provided Achema with a EUR 40 million loan to replenish working capital. Antanas Sagatauskas, head of the bank's business customer service department, noted at the time that the plant has a significant impact on the economy of the entire country, so it "needs to be helped to overcome the current market turbulence and provide a basis for sustainable growth in the future."

After the Lithuanian government decided in the spring to stop importing Russian gas, Achema buys it from Western markets.

Since last year, only one of the two workshops for the production of ammonium has been operating at the plant. Natural gas is the main raw material in the production of nitrogen fertilizers, its share in the cost is 70-80%.

According to the Lithuanian Social Insurance Fund, the plant employs 1,250 people.The Lithuanian plant Achema, the largest producer of nitrogen fertilizers in the Baltic States, has warned that it will stop operations on September 1 due to rising gas prices and an unmanageable increase in production costs.

The company has not been operating at full capacity since last autumn. From September, it will leave only the production of soil and technical gas in operation.

Achema is the largest consumer of natural gas in Lithuania.

"Record prices for natural gas directly affect the cost of production, prices for our fertilizers become uncompetitive compared to products from Russia and the United States. In such a situation on the market, most Western fertilizer producers are forced to stop their plants, Achema is no exception," he said. general director Ramunas Miliauskas.

After the shutdown of the plant, part of the staff will service the equipment, while the rest of the workers will be sent to idle time.

In July, Swedbank provided Achema with a EUR 40 million loan to replenish working capital. Antanas Sagatauskas, head of the bank's business customer service department, noted at the time that the plant has a significant impact on the economy of the entire country, so it "needs to be helped to overcome the current market turbulence and provide a basis for sustainable growth in the future."

After the Lithuanian government decided in the spring to stop importing Russian gas, Achema buys it from Western markets.

Since last year, only one of the two workshops for the production of ammonium has been operating at the plant. Natural gas is the main raw material in the production of nitrogen fertilizers, its share in the cost is 70-80%.

According to the Lithuanian Social Insurance Fund, the plant employs 1,250 people.