Stirol might shut down ammonia facilities
19 October 2008
In an interview yesterday, Honorary Chairman Nikolai Yankovsky said Stirol (STIR: U/R) plans to stop producing ammonia, but did not elaborate. However, he mentioned that the plant’s production will be unprofitable if the price for gas at the Ukrainian border exceeds USD $165 per tcm. Vladimir Nesterenko: Yankovsky’s statement is in line with our generally pessimistic view on the prospects of the Ukrainian fertilizer industry. With respect to Stirol, its $280 mln investment program, aimed at improving efficiency and further diversification, might enable the company to survive under the higher gas prices. Please see our upcoming report on fertilizer producers.
