Achema: the company is no longer profitable, around 400 people are laid off | Business



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The company has already closed three production units, one of which is an ammonia production plant. The company confirmed that a third of the workers, or about 400 people, are laid off.

Achema significantly reduces production capacity and works in workshops, which employ nearly a third of the company’s 1,300 people. “To protect jobs, Achema has adopted a temporary downtime model, in which people go into two weeks of inactivity after two weeks of work and then return to work two weeks later,” the statement from press.

Ramūnas Miliauskas, CEO of Achema, says that the price of gas in Europe has already risen to the red threshold above which Achema’s operations become unprofitable.

“There are daily reports of the closure and closure of fertilizer plants in Europe or the reduction by half of the world’s largest fertilizer producers. “Achema’s situation is similar: we are in a very uncertain situation, we are closely monitoring the market and we can plan our activities only for a short period of time,” said R. Miliauskas.

80 percent. Achema’s production cost consists of the price of natural gas,

According to the head of the company, other production units may have to stop even though the price of gas remains high, which would affect other directly and indirectly related companies, which exceed a thousand.

According to R. Miliauskas, there is currently a lack of a clear reaction from the Government to the gas crisis that is shaking Europe and the country. European governments say they will consider measures to compensate citizens and energy companies for surges in gas prices.

According to the owner of Achema, the same procedure could be applied to producers that use gas as a raw material.

R. Miliauskas also warns that when farmers buy more expensive fertilizers, they will sell more expensive crops, which means higher prices for food and other goods.

According to the director of Achema, due to rising gas prices from Gazprom, the US, Norway and other countries, not even the Klaipėda LNG terminal helps Lithuania to get cheaper gas.

If the plant were to close completely, according to R. Miliauskas, the impact would also be felt on the country’s budget: its contribution to the maintenance of the energy infrastructure, starting with various taxes, ending with payments for gas transportation or emission rights, it reaches around 52 million a year. euros.

In addition, reducing Achema’s sales would reduce the company’s VAT payments to 2 million. per month, the amount of personal income tax would also decrease.

On the fact that the drastic increase in gas prices has forced Achema to reduce production and close one of the two ammonia plants, which produce around 30 percent. total production, BNS reported last Friday.

Birutė Daškevičienė, president of the Achema union, previously stated that 40% will be paid to the dismissed employees. Average salary will be calculated on the basis of an average salary of three or twelve months, whichever is higher.

She confirmed the assumption made by BNS Mayor Mindaugas Sinkevičius to BNS on Monday that the suspension of part of production could affect up to 400 of the nearly 1,300 people working at Achema, with some of them going into inactivity. Since the 1st of october.



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