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A fertilizer plant in Romania is on the brink of survival

Торов завод в Румъния е на ръба на оцеляването
The Azomureş company announced on Friday that it was forced to stop production of ammonia and fertilizers in December due to the lack of a clear strategic commitment from the authorities, a fact that will have a negative impact on Romanian industry and agriculture.

"Azomureş, an important Romanian fertilizer producer, has suspended ammonia and fertilizer production for the month of December, due to a range of policies and lack of action by the authorities, which is negatively impacting the local industry. The negative impact on both industry and agriculture in Romania raises concerns about the long-term outlook and the company calls on the authorities to support the Romanian fertilizer industry, recognized globally for its high quality," the company said.

Azomureş CEO Josh Zaharias warned of a looming crisis in Romania's agriculture and industry and pointed to cost pressures from local inflation, anti-competitive practices and a future 1% income tax.

“We estimate a 3% reduction in profitability for farmers in Romania due to the multiplier effect of input purchases, plus taxed revenue from crop sales. It's a tragedy in slow motion,” Josh Zacharias said.

According to Azomureş, since the resumption of production in October, natural gas costs have increased by almost 40%, unrelated to the conflict in the Gaza Strip, and despite the region's huge gas reserves, the European gas market remains significantly more expensive than other parts of the world. .

"The Romanian state has at its disposal various levers to support big industry that derive from its own energy resources, which is a key difference from the EU as a whole, but unfortunately it does not use them. As a result, although other gas-producing countries in the world are building new fertilizer plants and other member states have introduced multibillion-euro packages in recent years to ensure that large industries continue to produce, in Romania Azomureş, the last a company of this kind is struggling to stay afloat," Josh Zacharias pointed out.

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