October 30, 2008

Russia's ammonia and mineral fertilizer producer Acron (AKRN.RS) said Wednesday (October 29) that it will temporarily cut production at all its factories through the end of November due to the current market turmoil.

The company said higher crop yields in the second half of this year prompted a decline in prices for agricultural products globally.

As a result, demand for mineral fertilizers has dropped over the past months, which has also contributed to lower prices, the Russian company said.

Acron's production unit in Veliky Novgorod will reduce its ammonium output by 30 percent, its mineral fertilizers by 50 percent and organic synthesis products and inorganic chemicals by 20 percent.

At the end of November, Acron may reverse its decision to cut production.