CF Industries to suspend ammonia production in United Kingdom

By MEDICINE HAT NEWS on August 25, 2022.

https://www.medicinehatnews.com@MedicineHatNews

CF Industries will suspend ammonia production in the United Kingdom citing the high price of natural gas in Europe, the company announced Wednesday.

The global fertilizer maker with a major facility in Medicine Hat, will continue to import ammonia to operate upgrading process facilities at its Billingham, U.K., facility, which should avoid layoffs.

There was no time estimate given on the span of the closure.

CF states fuel prices have driven marginal costs at the plant to about 2,000 British pounds per tonne while the wholesale price remains half that value.

Carbon dioxide deliveries to industrial and food manufacturers will also cease.

Europe has seen a substantial run up on the price of natural gas this year as uncertainty about deliveries from Russia continue due to war in Ukraine.

This winter, CF announced it would close a production facility near Chester and centralize operations at Billingham, in Northern England.