Brazil nitrogen and chemical producer Unigel has temporarily halted production at its nitrogen fertilizer plant in Camacari, Bahia, in addition to delaying the restart of its Sergipe nitrogen facility, while it tries to renegotiate contracts for the supply of natural gas and struggles to avoid worsening financial problems.
Valor Econômico reported in May that Unigel planned to delay the Sergipe restart for 90 days, starting in June, while the Bahia location would remain in operation (GM May 26, p. 30). Unigel has now confirmed, however, that “both nitrogen fertilizer units are in a state of temporary hibernation, while negotiations for the suspension of employment contracts take place, with their workforce active in preventive maintenance activities and inventory movement.”
The Sergipe unit has an installed urea production capacity of 1,800 mt/d, and can sell ammonia, carbon dioxide, and ammonium sulfate, while Bahai has an installed urea production capacity of 1,300 mt/d, with the ability to sell ammonia, carbon dioxide, and automotive liquid reducing agent Arla 32.
Valor Econômico reported that Unigel has been delaying payment to suppliers of its agriculture business in the wake of compressed margins in the ag and chemical sectors since the second half of 2022. In May, Unigel began to postpone its main expansion projects and renegotiate payment terms to suppliers.