LAT Nitrogen affected

Cheap fertilizer from Russia causes problems

The ammonia plant of LAT Nitrogen in Linz.

(Bild: LAT Nitrogen Linz)

It was a long tug-of-war in which the ball finally rolled in favor of the Agrofert Group. In the summer of 2023, the Czechs took over the nitrogen division of Borealis along with its almost 800 employees in Linz. Despite investments of 100 million euros, the situation there is currently tense. The reason: cheap fertilizer and ammonia from Russia and melamine from China are putting pressure on the markets.

In the summer of 2023, the Czech Agrofert Group completed the takeover of the Linz-based nitrogen division of Borealis. Purchase price: around 810 million euros. Since then, around EUR 100 million has been invested at the site in the provincial capital alone under the new LAT Nitrogen brand. The money has been spent on maintaining, inspecting and improving the facilities - a mega-project involving more than 70 different companies.

Dependence on Russia is shifting away from natural gas towards fertilizer.

Manuel Beschliesser, Chief Operating Officer

Manuel Beschliesser, Chief Operating Officer of LAT Nitrogen.

(Bild: LAT Nitrogen Linz)

What has changed significantly since the takeover? "We are focusing more on innovation and the future again. We have an owner who thinks sustainably," says site manager Leonhard Werner, who also speaks of a "difficult market environment".

What does that mean? A lot of cheap fertilizer and ammonia comes from Russia, forcing European fertilizer manufacturers to cut back or even shut down production. "Russia is flooding us with fertilizer and ammonia," says Manuel Beschliesser. Cheap melamine is also being exported to Europe from China.

"We are clearly committed to producing in Europe for Europe"
LAT Nitrogen has also reacted to this, and production in Linz has been reduced since the summer. Fixed costs are currently being increased, say the LAT Nitrogen managers. "It cannot be ruled out that we will have to shut down a plant one day," says Werner thoughtfully. Poland is fighting the imbalance, demanding import duties on Russian fertilizer. Beschliesser emphasizes: "We are clearly committed to producing in Europe for Europe."