AGF Nitrogen Weighs Production Cuts on High Gas Costs
AGF Nitrogen has halted some ammonia production lines and may implement further shutdowns within weeks. Surging natural gas prices and a severe slump in demand are driving the cuts across European facilities.
AGF Nitrogen halted select ammonia production lines and warned of further shutdowns within weeks as soaring Natural Gas costs and weak demand pressure operations, CEO Petr Cingr said on Tuesday afternoon. The European fertilizer producer is running its nitrogen units at 80% to 85% capacity, grappling with supply disruptions stemming from conflicts involving Ukraine, Israel, and Iran. The production cuts threaten further strain on agricultural supply chains across France, Germany, Slovakia, and Austria as farmers scale back fertilizer purchases.
