March 29 (SeeNews) - Romanian fertiliser producer Azomures said that it will partially resume production next month with financial support from the EU.
An official announcement of the granting of European aid is expected this week, so that in the first part of April fertilizer production could resume, Azomures said in a press release on Monday.
Half of production installations will be restarted in April, while the remaining installations are scheduled to resume operations in May. However, the exact restart date is subject to availability of natural gas in the Romanian market, Azomures added.
The plant could produce approximately 600,000 tonnes of fertilizers, which would cover part of the fertilization needs of Romanian farmers in the autumn agricultural campaign, essential for next year's crops.
Azomures shut down production in mid-December due to the high energy prices, particularly the price of natural gas which is the company's main raw material.
The European Commission recently adopted an economic support package aimed directly at farmers and energy-intensive companies, such as the fertilizer industry. Such companies could benefit from up to 50 million euro ($55 million) to balance the costs of energy. In the case of Azomures, this aid would cover the difference between the purchase price of natural gas and the cost of production of fertilizers.
Part of Swiss agribusiness group Ameropa since 2011, Azomures produces 1.6 million tonnes of fertilizers annually, and 75% of output is destined for local farms. Azomures industrial platform is located in the western part of the city of Targu Mures and covers an area of 100 hectares. The company employed 1,054 at the end of 2020, according to the latest data available on the finance ministry's website.
($=0.9104 euro)