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Highlights
- Australian trucking industry had constantly feared shutting down amid zero new suppliers.
- Ongoing global urea crisis has forced Australia to search for new mineral sources.
- Australian Federal Government has struck a deal with Incitec Pivot to significantly increase the local production of urea.
The global shortage of urea has forced Australia to search for new mineral sources. As a result, the Australian trucking industry has been in constant fear of shutting down amid zero new suppliers of AdBlue.
Last week, the Australian Federal Government announced that it had approached the Middle Eastern countries for help while urging businesses to avoid stockpiling AdBlue stocks, an essential fluid to reduce pollution from diesel engines.
Today, it is reported that Australia will receive 5,000 tonnes of refined urea from Indonesia in January, which is likely to make an additional monthly supply of AdBlue stock.
RELATED READ - Australia seeking new mineral sources amid global urea shortage
Besides, the worsening logistics conditions seem to get a relief as the Federal Government struck a deal with fertiliser manufacturer - Incitec Pivot – to increase the local production of urea significantly. The company will design and scale-up manufacturing significant quantities of technical grade urea for the domestic market.
Last month, Incitec had announced to halt its manufacturing operations in Brisbane by the end of FY22, which supplies nearly 10% of the Australian AdBlue market. However, Australia shouldn’t rely on only one plant for producing urea.
Australia to scale up urea manufacturing with Incitec Pivot
Bottomline –
Although the country got a little relief on the back of Incitec, the Government shouldn’t rely on one plant as the crisis is linked to China, which alone contributes to 80% of urea supply.
