Ostchem plants start preparing for production cuts due to boxcars shortage

As of August 21, 2018, Ukrzaliznytsia did not resume the supply of boxcars to the chemical plants of the Ostchem holding (part of Group DF).

This was reported by the press service of the company.

It is noted that without the boxcars, the Ukrainian agro-industrial complex runs the risk of not receiving a significant part of fertilizers needed for the autumn planting season.

"After the appeal of August 17 filed by the Ostchem management, PJSC “Azot” (Cherkasy) received only 2 units (1%) of the promised 150 boxcars, PJSC “Rivneazot” was supplied with only 15 units (20%) of the 75 promised cars,” stressed the press service.

Due to the limited storage space at the factories, where the holding has to keep the products, the enterprises have already begun preparations for reducing production capacity and the subsequent complete shutdown of production.

On August 20, 2018, the Ukrainian Chemists Union wrote an open letter to the Head of the Government of Ukraine Volodymyr Groysman requesting to create a working group consisting of the representatives of the government, Ukrzaliznytsia, Chemists Union, and farmers which will control the supply vehicles to the chemical plants and timely shipment of the products.

"If Ukrzaliznytsia fails to resume the supply of boxcars to the chemical plants in the required quantity in the next few days, Ostchem intends to file a complaint to law enforcement agencies to investigate the situation, and initiate the dismissal of the management of Ukrzaliznytsia for undermining the fall planting campaign and hindering the operation of chemical enterprises," – the company reported.