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Home Unigel suspends prior notice and plans to resume fafen at BA “as soon as possible”

Unigel suspends prior notice and plans to resume fafen at BA “as soon as possible”

14 November 2023 to 18: 56
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Camaçari, fertilizers, Petrobras, natural gas price, Unigel
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The company continues in discussions with Petrobras to complete the Unigel Agro Bahia operation.

Company Unigel announced this Tuesday (14/11) that it has decided to suspend the prior notice given to workers at the fertilizers located in Camacari, Bahia. The company also reported that it plans to resume operations at the asset as soon as possible.

In a statement, the Unigel highlighted that it is in the process of negotiating with the Petrobras to guarantee the viability of Unigel Agro Bahia's operation, and states that he is confident that a 'good solution for the parties' will be reached during the ongoing negotiations.

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At the beginning of the month, when informing Sindiquímica about the interruption of activities at Fafen Bahia, the company had already announced that the prior notice was a 'protective measure' that could be reversed at any time within a period of 30 days.

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

Challenges faced by Unigel due to the high cost of natural gas provided by Petrobras

A Unigel faces difficulties due to the high costs of natural gas provided by Petrobras, which directly impacts the final price of the finished product, making fertilizers unfeasible compared to the prices charged in the international market.

In addition to providing natural gas, Petrobras owns the fafen, leased to Unigel. Both companys negotiate partnerships that go beyond raw material prices, such as renewable energy and fertilizers.

The petrochemical industry is going through a period of unprecedented crisis, intensified by the competitiveness of the international market. Despite these challenges, the Unigel reaffirms its commitment to production de fertilizers nitrogen, which are essential for the country. The CEO of company, Roberto Noronha Santos, guaranteed that the workers will be maintained and that the production em Camacari will be resumed as soon as favorable conditions exist.

The factory located in Camacari has the capacity to produce 475 thousand tons of ammonia and the same amount in different types of urea in one year.

Source: EPBR Agency

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