Alkyl Amines Chemicals Ltd shares declined more than 3% after the company disclosed a temporary suspension of key manufacturing operations due to disruptions in ammonia supply, triggered by the ongoing geopolitical conflict in the Middle East.
The company informed stock exchanges that global logistics networks and petrochemical supply chains have been impacted by the conflict, leading to a shortage of Liquefied Natural Gas (LNG). Since LNG is a critical input for ammonia production, several ammonia manufacturers have invoked force majeure and are unable to supply the raw material.
As a result, Alkyl Amines is facing significant challenges in procuring ammonia, which is essential for producing methylamines, ethylamines, and their derivatives. Due to this disruption, the company has temporarily halted production of these products at its manufacturing facilities in Patalganga, Kurkumbh, and Dahej.
However, the company clarified that production of other products that do not require ammonia will continue at these sites, ensuring partial operational continuity.
The company described the situation as a force majeure event arising from geopolitical tensions and noted that the financial and operational impact cannot be estimated at this stage. Alkyl Amines added that it is actively exploring alternative sourcing options for ammonia and will update exchanges as the situation evolves.