Norway's Yara, one of the world's largest fertiliser makers, said today it was further curtailing production of ammonia in Europe due to soaring gas prices.
This is the latest example of a manufacturer cutting output due to high energy costs.
Yara's European ammonia capacity utilisation stands at about 35% after the change.
"With this, Yara will have curtailed an annual capacity equivalent of 3.1 million tonnes ammonia and 4 million tonnes finished products," the company said in a statement.
Fertilisers require large amounts of energy to be produced. Manufacturers such as Yara use gas for the process.
The company would use its global sourcing and production system to optimise operations and meet customer demand, it added, including continued nitrate production, using imported ammonia, when feasible.
Yara has repeatedly warned that the world faces an extreme food supply shock, due to a combination of high gas prices, the war in major grains producer Ukraine and sanctions on fertiliser producer Russia.
Yara is one of several European chemical companies that have curtailed ammonia output due to soaring gas prices. Germany's SKW Piesteritz and BASFhave already cut some ammonia production.
BASF is also considering further cuts to its ammonia production, sources told Reuters in July.
