Romanian Amonil Halts Prod, Lays Off 80% Of Employees

Romanian fertilizers maker Amonil (AMO.RO) ceased Monday its ammonia and urea production amid low international and local demand for nitrogen-based fertilizers, and will lay off 80% of its employees, the company announced Tuesday.
Some instalations are continuing operations for a while, but the plant will completely shut down its facilities in the near future, the company said in a statement sent to the Bucharest Stock Exchange.

The plant’s operations were halted in the last quarter of 2008 as well, in the light of the financial crisis, but were resumed early February.

Amonil shares were suspended from trading Tuesday morning, for announcing the decision.

Amonil Slobozia shareholders have recently approved the transfer of some assets to Riverside Development Limited, for a 53.8 million lei (EUR1=RON4.2392) debt, in order to prevent insolvency. Riverside Development Limited took over from Distrigaz Sud a RON53.8 million debt of that Amonil owed Distrigaz.

Amonil is 50.4% owned by two offshore companies registered in the Belize Islands, Zalois and Jovline, with a 32.19% stake and an 18.22% stake.

The company has a share capital of RON111.6 million divided into 1.11 billion shares with a face value of RON0.1.

Amonil reported a net profit of RON6.2 million in 2008, down 11.6% on the year.

After the trades were resumed, Amonil shares were down 8.55% on the Bucharest bourse, at RON0.0107, at about 0801 GMT.