Amonil halts production again

The management of chemical fertiliser manufacturer, Amonil Slobozia, has decided to halt operations until the end of this month, following a problem regarding natural gas delivery, that is suspension of deliveries by the supplier. The company will take advantage of this halt in operations to inspect a series of installations, such as Kellogg Ammonia and Urea 2. By the end of the month, company representatives will negotiate with the methane gas supplier in order to resume deliveries of natural gas, a basic raw material for the production of fertilisers, according to the notification of the company to the Stock Exchange. According to the management, one of the reasons why Amonil has been late in paying for natural gas supplies is because Amonil has been faced with difficulties in recovering receivables from water supplying regie in Slobozia. The company also halted activity at the beginning of this year, again due to difficulties with natural gas supplies, which resulted in losses worth over one million dollars. Amonil’s management is considering closing down the plant and offering redundancies to the majority of employees as of mid November, due to an increase in natural gas prices, which accounts for 70% of production costs.