MOSCOW (MRC) -- Record natural gas pricing for Poland-based chemicals producer Grupa Azoty has driven the company to halt some caprolactam (capro), polyamide 6 (PA6), and nitrogen fertilizers production, the firm said.
The company is planning to halt production of nitrogen fertilizers, PA6, and capro at its Grupa Azoty SA division – the overall company parent, based in Tarnow, Poland – and reduce production at its Pulawy site in the country.
The temporary shutdowns at its Grupa Azoty SA operations are expected to come into effect from Tuesday (23 August), the company said, driven by “record” natural gas prices.
Azoty estimates that its natural gas pricing has increased from EUR72 per megawatt hour (MWh) on 22 February to EUR276/MWh on 22 August.
Azoty is understood to have already reduced production of melamine, ammonia, and urea in July.
The company had not responded to requests for comment on the extent of the production cuts at its Pulawy operations at the time of publication.
Earlier it was reported that Grupa Azoty Zak plans to shut the production of dioctyl terephthalate (DOTP) at its plant in Kedzierzyn (Poland) in the second half of August for repairs. Grupa Azoty intends to close this production facility with a capacity of 65 thousand tons of DOTP per year in Kedzierzyn by the second half of August.
Grupa Azoty S.A. - a large diversified chemical holding, is the fifth largest producer of polyamides in Europe, the only Polish producer of polyoxymethylene and one of the leading producers of mineral fertilizers in the European Union. The largest shareholder is the State Treasury of Poland (32.05%), the rest of the owners are institutional investors. Grupa Azoty Tarnow is engaged in the production and distribution of building plastics, as well as raw materials for their production and mineral fertilizers.