Dominos Fall As Germany’s Largest Ammonia Producer Slashes Output Amid Energy Crisis  | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Dominos Fall As Germany’s Largest Ammonia Producer Slashes Output Amid Energy Crisis 

A natural gas shortage across Europe has created supply-chain shocks, as seen in the food industry, where problems continue to worsen. European natgas prices are at insane levels, triggering a domino effect of output reduction or closures of fertilizer plants on the continent.

Last month, two of the U.K.'s largest fertilizer factories producing 45% of domestic demand closed, and one shortly reopened with government aid. By late month, Austrian fertilizer producer Borealis AG slashed ammonia output after the cost natgas compressed margins in an industry facing tight supplies.

As the dominos fall, SKW Piesteritz, Germany's largest ammonia producer, announced a 20% reduction in ammonia production due to the record-high natgas prices on Tuesday.

"The level that has now been reached no longer enables economically sensible production, so that we are forced to take this step," the company told Bloomberg in an emailed statement.

"Without government action, there is a risk of production being halted shortly," the statement continued.

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