Alkyl Amines Chemicals shares fall after ammonia shortage halts production at three plants

Shares of Alkyl Amines Chemicals Ltd. opened as much as 3% lower on Tuesday, March 17, after the company informed exchanges that the ongoing geopolitical conflict in West Asia  has disrupted global logistics networks as well as crude oil and petrochemical supply chains.

The disruption has affected the availability of liquefied natural gas (LNG), a key input used in the production of ammonia.

As a result, several ammonia manufacturers have invoked force majeure and indicated their inability to supply the product during this period.

The company said it is currently facing challenges in procuring ammonia, which is a critical raw material used in the manufacture of methylamines, ethylamines and their derivatives.

Due to the shortage, the company has temporarily suspended the production of these products at its Patalganga, Kurkumbh and Dahej facilities.

However, the manufacture of other products at these plants, where ammonia is not required as an input, will continue as usual.

The company said the financial and operational impact of the force majeure event cannot be estimated at this stage, as the situation remains ongoing.

It added that it is closely monitoring developments and exploring alternative ammonia sourcing arrangements, and will inform stock exchanges of any material updates.

Shares of Alkyl Amines Chemicals ended 1.36% lower on Monday at ₹1,261. The stock has declined more than 18% over the past one month.