CF Industries closing one U.K. plant to better focus on another

By MEDICINE HAT NEWS on June 10, 2022.

https://www.medicinehatnews.com@MedicineHatNews

CF Industries will close one of its fertilizer plants in the United Kingdom, and concentrate on another which is better able to weather increasing costs and questions about environmental sustainability, the company said this week.

The global nitrogen and ammonia producer announced Wednesday it will close its plant in Ince, near Chester, which has been idled due to high natural gas prices since 2021.

That will lead to the layoff of about 300 workers, CF release stated, and discussions with unionized workforce would begin shortly. Production in Britain would be maintained at CF’s Billingham site – the country’s largest ammonia plant, with import capability and more efficient operations, according to the Illinois-based company.

A corporate office at Ince would also be closed and another 33 employees at Billingham could be laid off in a reorganization. British labour laws require 45 days of consultation once companies fill such “redundancy” proposals.

“As a high-cost producer in an intensely competitive global industry, we see considerable challenges to long-term sustainability from our current operational approach,” said Brett Nightingale, manger of CF Fertilizer U.K. “Following a strategic review of our business, we believe that the best way to continue our legacy of serving customers in the U.K. is to operate only the Billingham manufacturing facility moving forward while addressing cost pressures throughout our business.”

CF states that pressure from lower-cost imports has eaten up market share. Last fall it came to an agreement with industrial customers to sell carbon dioxide from the plant as well as a deal for the British government to cover some portion of rising gas supply costs at Billingham.

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