Achema will completely suspend its production facility due to high gas prices

On September 1, 2022, the Lithuanian producer of nitrogen fertilizers, Achema, will completely shutdown its factory due to the increase in the price of natural gas and, therefore, uncontrolled increase in production costs. It’s currently operating at partial capacity.

“Historically high prices for natural gas directly affect the cost of production. Our fertilizer prices become uncompetitive compared to products from Russia and the United States. In such a situation on the market, most of the Western producers of nitrogen fertilizers are forced to stop their plants, and Achema is no exception,” said Achema CEO Ramūnas Miliauskas.

Achema is the only company in Lithuania that produces nitrogen fertilizers – carbamide, ammonium and calcium ammonium nitrate. At the same time, it’s the largest consumer of natural gas in the country.

Source: Interfax