Unigel Suspends Notice Period and Plans to Resume Fafen in Bahia "As Soon As Possible"

Unigel Suspends Notice Period and Plans to Resume Fafen in Bahia “As Soon As Possible”

Written by Paulo Nogueira

Published on 14/11/2023 at 18:56

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The Company is in Discussions with Petrobras to Finalize the Operation of Unigel Agro Bahia.

The company Unigel announced this Tuesday (11/14) that it has decided to suspend the notice given to workers at the fertilizer plant located in Camaçari, Bahia. The company also stated that it plans to resume operations of the asset as soon as possible.

In a statement, Unigel emphasized that it is in the negotiation process with Petrobras to ensure the viability of the Unigel Agro Bahia operation, and claims to have confidence that it will reach a ‘good solution for both parties’ during the ongoing negotiations.

Earlier this month, when informing Sindiquímica about the suspension of activities at the Bahia fafen, the company had already communicated that the notice was a ‘protective measure’ that could be reversed at any moment within a 30-day period.

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Unigel employs 384 workers in the production of the fertilizer unit in Bahia, including direct and indirect employees. According to the company, the plant has been operating at a loss since the end of 2022.

Challenges Faced by Unigel Due to the High Cost of Natural Gas Supplied by Petrobras

Unigel is facing difficulties due to the high costs of natural gas supplied by Petrobras, which directly impacts the final price of the finished product, making fertilizers unviable compared to prices in the international market.

In addition to supplying natural gas, Petrobras owns fafen, which is leased to Unigel. The two companies are negotiating partnerships that go beyond raw material prices, such as renewable energies and fertilizers.

The petrochemical industry is undergoing an unprecedented crisis, intensified by the competitiveness of the international market. Despite these challenges, Unigel reaffirms its commitment to the production of nitrogenous fertilizers, which are essential for the country. The CEO of the company, Roberto Noronha Santos, assured that workers will be retained and that production in Camaçari will resume as soon as favorable conditions arise.

The plant located in Camaçari has the capacity to produce 475 thousand tons of ammonia and the same amount in different types of urea in a year.

Source: EPBR Agency

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Unigel Suspends Notice Period and Plans to Resume Fafen in Bahia “As Soon As Possible”

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