EuroChem Group AG said on Nov. 29 the Lithuanian phosphate fertilizer company Lifosa AB is completing preparations to restart its Kėdainiai production facilities in December. Lifosa is part of the EuroChem group.
EuroChem in November said Lifosa would restart production in December at a reduced capacity, providing sourcing of critical raw materials could be secured “immediately” (GM Nov. 18, p. 30). The fertilizer group in its latest statement did not comment on how much capacity is being restarted.
The planned restart follows an interim agreement with a government-appointed administrator (GM Nov. 11, p. 31; Nov. 4, p. 34).
Lifosa had been under the control of a temporary administrator since the end of May. Production was halted in mid-September due to a shortage of critical raw materials, including ammonia, and high natural gas prices (GM Sept. 16, p. 29; Sept. 9, p. 28). The producer had only resumed operations on Aug. 7.
Lifosa’s main product is DAP, with a production capacity of some 1 million mt/y.
“With the need to continue fertilizer supplies to key target markets in Europe and the Americas and the importance of Lifosa AB to Lithuania, we are pleased that we will be able to restart production in the short term,” said EuroChem Group CEO Samir Brikho.
However, he had warned in a statement last month that to ensure sustainable economic operations beyond December, “additional steps will need to be taken with regard of Lifosa obtaining access to competitively-priced raw materials and the permission to market its products to a broader customer base,” (GM Nov. 18, p. 30).
The CEO said this required Lifosa’s “quick reintegration into the EuroChem sales and procurement network.”