Yara stops production at Le Havre temporarily
Yara International ASA has decided to stop production of ammonia at the production plant in Le Havre, France from July 1, 2006. Consequently on-site urea production will cease from the same date. The timing of any restart will depend on developments in the gas market.
The plant in Le Havre 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 400,000 tonnes of ammonia and 350,000 tonnes of urea.
The decision to stop production temporarily is related to the current situation in the European gas market, where the impact of high oil prices and thus high gas prices, has weakened the competitive position of smaller European plants like Le Havre. Natural gas costs represent up to 80 percent of the total production costs.
The Le Havre plant will be mothballed and conserved for a possible start-up when market conditions improve. During the months of July and August, Le Havre employees will attend to mothballing, logistics, plant safety and other tasks within the group. Management is examining different alternatives for the future. In the meantime, Yara will continue to fulfil customer contracts from built-up stock and alternative product sourcing.
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