Thursday, May 19, 2022

Ballance increases AdBlue production to avoid national shortage

A global shortage of AdBlue has forced fertiliser company Ballance to increase its production to keep New Zealand’s transport and heavy machinery industries moving.

Ballance has produced enough AdBlue to supply the transport industry for the next six months following fears a national shortage could ground heavy vehicles.

A global shortage of AdBlue has forced fertiliser company Ballance to increase its production to keep New Zealand’s transport and heavy machinery industries moving.

AdBlue is a diesel exhaust fluid used in trucks to meet New Zealand’s anti-pollution standards.

Its primary ingredient is urea, which is currently experiencing a global shortage after two of the world’s biggest producers China and Russia limited exports to secure their own domestic supply.

This has led to a global shortage. 

In Australia, news agencies have reported that it has around seven weeks of AdBlue left in the country. 

Its government is frantically searching for new supplies of the product.

As a result, Ballance increased production of its AdBlue product GoClear. 

Ballance chief executive Mark Wynne says the co-operative supplied one of New Zealand’s biggest AdBlue distributors with one million litres of GoClear.

“At which time the domestic market was within days of running out of diesel fuel additive. You can see how big this is, we produced approximately six months’ worth of GoClear (AdBlue) in three weeks.”

Ballance is New Zealand’s only domestic manufacturer of urea, producing the product at its Kapuni site. 

The AdBlue shortage meant it diverted significant urea production that was originally planned to be made into fertiliser towards making GoClear (AdBlue) to meet demand.

Wynne said without the AdBlue, New Zealand could end up with domestic freight issues.

“New Zealand’s freight and transport industries could literally come to a standstill and have major flow-on effects for many sectors – including food shortages, increased food prices and the interruption to the supply chains which sustain economies.”

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