Fertilizer manufacturer Yara scales down production

Fertilizer producer Yara is making changes at its production site in Tetre, Belgium, which will result in 115 job losses. The company is shifting its focus from ammonia fertilizers to nitrate fertilizers, which have a higher value. High energy costs and market conditions are forcing the Norwegian company to make this decision, it says.

The factory produced 400.000 tons of ammonia annually. In addition, the annual production amounted to 950.000 tons of ammonium nitrate and 800.000 tons of nitric acid. With the termination of the ammonia branch, this will soon be 600.000 tons of 'premium' nitrate fertilizers and 250.000 tons of industrial (nitrogen) products.

Less CO2
According to Yara, the Belgian site, near Bergen, is affected by difficult market conditions, high energy and maintenance costs. As a result, the factory has not been operating properly for some time. In 2022, fertilizer production was halted after European energy prices went through the roof. At the beginning of last year, production levels had not yet returned to normal. By eliminating ammonia production, Yara is taking an important step in reducing CO2 emissions, says manager Michel Warzée. A lot of natural gas is still used for the production of ammonia fertilizer, which makes the product closely linked to gas prices.

Second closure
The need for ammonia in Europe is being met by Yara's other factories. The decision will result in 115 people losing their jobs. 200 jobs will be retained. In addition to the factory in Belgium, Yara has factories in Vlaardingen and Sluiskil where fertilizers are produced. A year ago, the producer closed the doors of its factory in Montoir-de-Bretagne, France, near Nantes.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.