What’s the status of Chitianhua, Chuanhua, and Jianfeng Fertilizer Plants?
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It is said that Chitianhua, Chuanhua, and Jianfeng Fertilizer Plants have all stopped production – is that true? Who knows, let’s confirm.
Chuanhua has ceased production; the status of Chitianhua is unknown; Jianfeng Fertilizer is operating normally.
Guizhou Chitianhua Co., Ltd. Announcement on the Suspension of Production at the “Qitou” Urea Production Plant The raw natural gas used in the company’s “Qitou” urea production plant consists of natural gas allocated for fertilizer production (accounting for approximately 88% of the total usage) and additional natural gas (accounting for about 12% of the total usage), with different prices applying to each type. Starting from November 1 this year, the price of natural gas used in the company’s fertilizer production plan has been increased by 0.20 yuan per cubic meter. Recently, the **National Development and Reform Commission reduced the prices of natural gas at distribution stations for non-residential users. This reduction only affected the price of the additional gas used by companies, which accounts for about 12% of the total consumption. However, the increase in the price of natural gas used in fertilizer production – which accounts for around 88% of total consumption – led to an increase in the overall cost of using natural gas. Coupled with the fact that the urea market is currently in a slow sales period, the market remains sluggish, resulting in the cost of urea produced by the company’s facilities becoming negative. In order to reduce the operational losses associated with the company’s products, after careful consideration, it was decided that the urea production facility using natural gas as a raw material would suspend operations starting from November 19, 2015. The resumption of production at this facility will depend on market conditions for these products as well as the price of natural gas. The urea production plant operating under this \"high-pressure\" mode is temporarily shut down; although this will result in a decrease in the company’s production and sales volume of urea for the year 2015, it will contribute to an improvement in the company’s financial performance. This is to announce. Board of Directors of Guizhou Chitianhua Co., Ltd. November 20, 2015
Starting and stopping is the norm; there’s no need to make a big deal out of it. Normal production is intoxicating; starting and stopping it brings only tears. Year after year, through hardships, we endure the cold winters in anticipation of spring plowing.