Yara has announced it will temporarily stop production of urea and ammonia at its site in Ferrara, Italy from 1st November 2008, following lower market activity and pricing levels.
The company’s Ferrara plant transforms natural gas into ammonia and urea, which are the main components in the production of nitrogen fertilizers and chemicals. The plant has an annual production capacity of 600,000 metric tons of ammonia and 500,000 metric tons of urea.
The decision to stop production temporarily is related to the current situation in international urea markets, where lower activity and price levels have impacted profitability.
The Ferrara plant will be conserved and on standby for start-up when market conditions improve. In the meantime, Yara will continue to fulfil customer contracts from built-up stock and alternative product sourcing.
Lay-offs are not anticipated as a result of the action, as employees will attend to plant safety and other tasks within the group.
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