Romania fertilizer producer InterAgro to close last two units

30 March 2011 14:44  [Source: ICIS news]

BUCHAREST (ICIS)--Romania's InterAgro has set dates for the closure of its last two units following a government refusal to enable the supply of cheaper gas feedstock, the fertilizer producer said on Wednesday.

"We will stop production at [the] Donau Chem Turnu Magurele unit from 1 April and at Chemgas Slobozia on 8 April. As I previously said, due to higher prices for natural gas feedstock our activity has become unprofitable," said company director Ioan Niculae.

InterAgro had previously said it would close the Donau Chem and Chemgas units by 30 April.

The company began closing four other units earlier this year - Viromet Victoria, Nitroporos Fagaras, GA-PRO Co Piatra Neamt and Amurco Bacau. Most of its 5,700 workers have already lost their jobs.

The Romanian government decided that from 1 November 2010, discounts given to local fertilizer producers on natural gas prices from domestic production would be cut.

The decision has affected producers because natural gas makes up, on average, 75% of their finished products.

Romania produces around 13bn cubic metres of gas a year - about 60% of its annual needs. It imports the rest, mostly from Russia.

For more on fertilizers visit ICIS pricing fertilizers

By: Marian Chiriac
+44 20 8652 3214

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