CF Industries' U.K. unit to halt ammonia production on surging nat gas prices

CF Industries' U.K. unit to halt ammonia production on surging nat gas prices

CF Industries (NYSE:CF) said on Wednesday its U.K. subsidiary will temporarily

at the Billingham plant, in a move that could affect crucial carbon dioxide supply to the food industry.

CF Industries (CF) said ammonia production at the plant is "uneconomical" at current natural gas and carbon prices, with marginal costs above £2K/metric ton and global ammonia prices at about half that level.

The company said it expects to fulfill all ammonia and nitric acid contracts and all orders of ammonium nitrate contracted for delivery in the coming months.

The Billingham plant, which has a capacity of 400K tons/year. is the U.K. main source of carbon dioxide, which is heavily used in the food industry.

CF Industries (CF) previously

; combined, the two plants accounted for as much as 60% of U.K.'s CO2 production.