Poland's largest fertilizer producer, Azoty, on Tuesday suspended the operation of a unit used for the production of nitrogen fertilizers, caprolactam and polyamide 6 due to increased gas prices
WARSAW (Pakistan Point News / Sputnik - 23rd August, 2022) Poland's largest fertilizer producer, Azoty, on Tuesday suspended the operation of a unit used for the production of nitrogen fertilizers, caprolactam and polyamide 6 due to increased gas prices.
"Due to record prices for natural gas the main raw material used in production by the Azoty group the company has decided to temporarily stop the operation of a unit for the production of nitrogen fertilizers, caprolactam and polyamide 6 from August 23, 2022," the company said in a statement published on Monday.
Azoty explained that prices for natural gas had increased from 72 Euros ($71) per MWh on February 22 to 276 euros per MWh on August 22.
Meanwhile, the company will continue to produce catalysts, polyamide shells, humic acids, thermoplastic starch and concentrated nitric acid, according to the statement.
During the suspension of production facilities, Azoty will implement investment and repair processes, including the scheduled overhaul of polyamide units.
The company also stated that it was constantly monitoring "the level of prices for raw materials and the profitability of production processes, and on this basis will make further business decisions."
On April 27, Russian energy giant Gazprom suspended gas supplies under a contract with Polish dominant gas company PGNiG due to its refusal to pay for Russian gas in rubles in accordance with the new scheme. Before that, Poland was receiving up to 10 billion cubic meters of Russian gas per year through the Yamal-Europe gas pipeline. Warsaw hopes to compensate for the volume with the use of the Baltic Pipe pipeline supplying gas from the Norwegian shelf through Denmark.
