Turkey suspended output from major fertilizer maker Bagfas Bandirma Gubre Fabrikalari AS for failing to meet adequate environmental standards in the Sea of Marmara, according to Bloomberg, citing an announcement by the Ministry of Environment and Urbanization on June 13. However, Bagfas quickly appealed the government decision, and has been given 50 days before having to halt production.
On June 16, Bloomberg reported that Bagfas shares dropped 10 percent after Borsa Istanbul on June 14 excluded the company from its indexes and put it on a watch list following the suspension news.
The government’s move follows allegations that Istanbul-based Bagfas was pouring waste into the sea. Turkey is stepping up its efforts to fight the accumulation of sea snot, a slimy layer of gray sludge at the surface of the water.
Bagfas Chairman Kemal Gencer denied the allegations in an interview with Bloomberg, saying the company only used sea water for cooling purposes and discharged the same water back to the sea, albeit at a higher temperature.
Sea snot, or marine mucilage, is spreading because of rising sea temperatures, pollution, and high amounts of nitrogen and phosphorus, said Environment and Urbanization Minister Murat Kurum. The substance is generally not harmful, but can become so thick that it suffocates marine life below.
Bagfas is a major producer of calcium ammonium nitrate and is involved in the import/export and distribution of a long list of fertilizer products, including DAP, ammonium sulfate, NPKs and raw materials.