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Petrobas announces 2019 fertilizer plant closures

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World Fertilizer,

After months of uncertainty, Petrobas has announced that it plans on closing two fertilizer plants that are incurring losses.

Both plants are due to close by 31 Jan 2019.

There has been some debate over the closing date of the plants, due to involvement from local government representatives. Closure dates were repeatedly delayed and a task force was formed to investigate alternatives to closure.

Argus states that Petrobas plans to close "Fafen-SE plant in Sergipe and the Fafen-BA plant in Bahia on 31 January, unless the task force comes up with a viable solution that at least offers a minimal return for the company. Petrobras said the additional time was needed to conclude an analysis of the future of the plants."

The plants have a capacity of 900 000 tpy of ammonia, 1.1 million tpy of urea, 36 000 tpy of nitric acid and 150 000 tpy of CO2.

Negotiations between Petrobas and Russian fertilizer producer Acron have taken place, however nothing has been finalised as of yet.

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