Two Fertiliser Firms Cease Production
Two Bulgarian fertiliser firms are halting production as demand has weakened as a result of the global financial crisis, they said on Thursday.
Bulgaria's Agropolichim and Neochim, are leading fertiliser producers in southeast Europe.
The shutdowns are bad news for Bulgaria's emerging economy as the two companies are among the top exporters from the Balkan country, which depends heavily on foreign cash to fund its huge current account deficit.
Fertiliser prices have plummeted in recent weeks, pulled down by falling world commodity prices and global market turmoil, denting producers' margins.
Last month, Yara International ASA, the world's largest producer of mineral fertilisers, halted production at a plant in Italy and did not rule out more capacity cuts.
"We are probably the last factory in the Balkans which is still working," Agropolichim's CEO Phillipe Rombaut said. "Usually this time of the year is high season and we are shipping 2,000 tonnes a day. Now we are shipping 300 tonnes."
Phosphate fertiliser production at Agropolichim, over 90 percent of which is exported, will probably resume work in early December when it expects sales to the Middle East, he said. Nitrate production will remain shut indefinitely.
Agropolichim, which produces about 800,000 tonnes of fertilisers a year, will decide in the next two to three weeks how many of its 1,100 workers will lose their jobs, Rombaut said.
Neochim, which like Agropolichim exports most of its fertiliser and chemical output to the Balkans, South America, the Middle East and Europe, will not resume work after being shut for maintenance for the past month, a spokeswoman said.
Bulgaria's Agropolichim and Neochim, are leading fertiliser producers in southeast Europe.
The shutdowns are bad news for Bulgaria's emerging economy as the two companies are among the top exporters from the Balkan country, which depends heavily on foreign cash to fund its huge current account deficit.
Fertiliser prices have plummeted in recent weeks, pulled down by falling world commodity prices and global market turmoil, denting producers' margins.
Last month, Yara International ASA, the world's largest producer of mineral fertilisers, halted production at a plant in Italy and did not rule out more capacity cuts.
"We are probably the last factory in the Balkans which is still working," Agropolichim's CEO Phillipe Rombaut said. "Usually this time of the year is high season and we are shipping 2,000 tonnes a day. Now we are shipping 300 tonnes."
Phosphate fertiliser production at Agropolichim, over 90 percent of which is exported, will probably resume work in early December when it expects sales to the Middle East, he said. Nitrate production will remain shut indefinitely.
Agropolichim, which produces about 800,000 tonnes of fertilisers a year, will decide in the next two to three weeks how many of its 1,100 workers will lose their jobs, Rombaut said.
Neochim, which like Agropolichim exports most of its fertiliser and chemical output to the Balkans, South America, the Middle East and Europe, will not resume work after being shut for maintenance for the past month, a spokeswoman said.
