Source: Yara International ASA news release

Yara International ASA will temporarily stop production of ammonia and urea at its site in Le Havre, France by early next week. Ammonia and urea production at Yara's site in Sluiskil, the Netherlands, will also be reduced temporarily.

The timing of restarts will depend on the development in ammonia, urea and natural gas markets.

The plants in Le Havre and Sluiskil transform natural gas into ammonia and urea, which are the main components in the production of nitrogen fertilizers and chemicals. The Le Havre plant has an annual production capacity of 400,000 tons of ammonia and 350,000 tons of urea. The plant in Sluiskil is reducing production equivalent to 900,000 tons of ammonia and 200,000 tons of urea on an annual basis.

The decision to stop production temporarily is related to the current situation in international ammonia and urea markets.

The Le Havre plant will be conserved and on standby for start-up when market conditions improve. Layoffs are not anticipated, as employees will attend to plant safety and other tasks.

Yara will continue to fulfil customer contracts from built-up stock and alternative product sourcing. Yara said this demonstrates the flexibility in its business model, enabling a reduction in energy cost by stopping ammonia production and instead importing cheaper ammonia to Sluiskil as raw material for nitrate production.