Operations of GNFC's Ammonia Plant Disrupted

Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has announced that on October 15, 2006, the Ammonia plant operations of the Company were disrupted due to disturbances in Ammonia Synthesis Reactor and as a result, normal operating conditions could not be sustained. To investigate the cause and to take remedial action, the Ammonia plant was shut down, resulting into shut down of some plants of the Company, such as Urea, Ammonium Nitrophosphate, Formic Acid, Acetic Acid and Methanol III - whereas other plants such as Methanol I & II, Weak Nitric Acid, Concentrated Nitric Acid I & II, Calcium Ammonium Nitrate, two boilers and Power Generation Unit continued to operate.

There has been no incident of human injury. The plant operations are expected to be normalized around November 27, 2006.

The Company has taken the Mega Insurance Policy Cover including cover for fire, machinery break down, loss in transit and Business interruption arising out of the same.

This shut down of some plants will impact the business operations and financial results for the current quarter. At the same time Company is taking adequate steps to ensure that such impact is minimized.

Source : Equity Bulls

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