The Acron Group is announcing a decrease in output at all of its facilities due to the adverse market environment.
Acron (Veliky Novgorod, Russia) is reducing its ammonia output by 30%, cutting output of mineral fertilisers (ammonium nitrate, urea, NPK, dry blended fertilisers) by 50% and reducing output of organic synthesis products and inorganic chemicals by 20%.
Dorogobuzh (Smolensk Region, Russia) is cutting its ammonia output by 15% of total capacity and reducing ammonium nitrate output by 50%.
Hongri Acron (Shandong Province, China) is cutting its complex fertilisers output (NPK and dry blended fertilisers) by 50%.
No job cuts are planed by the Acron Group. The company has sufficient stock on hand to discharge its current contractual obligations.
Chairman of Acron’s Board of Directors Alexander Popov commented on the production decrease:
“The situation in both the global and Russian mineral fertilisers markets has become more complicated. The global liquidity crisis has impacted the financial position of agricultural producers; many of them are experiencing difficulties with obtaining debt financing. Moreover, higher yields in the second half of this year caused lower prices for agricultural products globally. Demand for mineral fertilisers has dropped over the past couple of months, which has also resulted in lower prices.
“Given these circumstances we have decided to temporarily reduce production. This schedule will remain in effect through the end of November, at which time we may reverse the decision.”