Amonil secures customers

Chemical fertiliser maker Amonil Slobozia will sign contracts valid till 2010 to supply fertilisers with two international traders in an attempt to raise enough cash for a retooling investment programme. In order that it receive in advance the money for the fertilisers it will supply over the next five years, Amonil will have to mortgage a piece of equipment worth $10 million (7.5 million euros) to the two traders and is planning to take out another $10 million foreign loan. Amonil estimates the investment programme it needs by 2010 to be worth 14.8 million euros. It includes investments in the environmental protection measures the company is required to take to comply with European Union standards. The company will deliver around 3 million tonnes of urea and liquid chemical fertilisers divided almost equally between Transammonia (US) and Ameropa (Switzerland). The contracts include provisions for periodical renegotiation of delivery prices depending on market conditions. Transammonia is one of the main clients of another Romanian fertiliser maker, Azomures Targu Mures. ZF