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CF Fertilisers UK Announces Proposal to Permanently Close Ammonia Plant at Billingham Complex
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CF Fertilisers UK announces proposal to permanently close ammonia plant at Billingham Complex in order to secure long-term sustainability. Company plans to continue producing ammonium nitrate and nitric acid using imported ammonia due to cost-competitiveness and supply-demand imbalance. Closure could result in up to 38 redundancies.
Positive
CF Fertilisers UK plans to continue producing ammonium nitrate and nitric acid using imported ammonia, ensuring efficient production and sales for its U.K. customers.
Closure of ammonia plant could lead to cost savings and increased profitability for CF Fertilisers UK.
Negative
Closure of ammonia plant may result in up to 38 redundancies at the Billingham site.
Company Intends to Continue to Import Ammonia to Produce Ammonium Nitrate Fertiliser and Nitric Acid at Billingham Site for U.K. Customers
BILLINGHAM, U.K.--(BUSINESS WIRE)--
CF Fertilisers UK Limited, a subsidiary of CF Industries Holdings, Inc. (NYSE: CF), today announced a proposal to permanently close the ammonia plant at its Billingham Complex in order to secure the long-term sustainability of its business in the United Kingdom (U.K.) and more efficiently serve its customers in the country. The Company intends to continue to produce ammonium nitrate (AN) fertiliser and nitric acid at the Billingham site using imported ammonia, as it has for the last 10 months following its decision to temporarily idle the plant in August 2022.
CF Fertilisers UK has made this proposal due to its forecast that producing ammonia at Billingham will not be cost-competitive for the long-term compared to importing ammonia due primarily to projected high natural gas prices in the United Kingdom relative to other regions and the impact of carbon costs. Additionally, shutdowns in recent years of industrial customers’ U.K. operations that had consumed significant ammonia volumes for their businesses have created a supply-demand imbalance for ammonia production at the Billingham Complex. The Company believes that ample global availability of ammonia for import, including from CF Industries’ North American production network, will enable more cost-competitive and efficient production and sales of ammonium nitrate fertiliser and nitric acid for its U.K. agriculture and chemicals customers moving forward.
The Company’s proposal to permanently close the ammonia plant at its Billingham Complex could result in up to 38 redundancies at the site, in relation to which it will be entering into the required collective redundancy consultation process with its recognised union, Unite, and elected employee representatives. The Company anticipates that some of the proposed redundancies might be avoided by redeployment opportunities.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the Company’s website at www.cfindustries.com and encourages those interested in the Company to check there frequently.
CF Fertilisers UK plans to permanently close the ammonia plant at its Billingham Complex.
Why does CF Fertilisers UK want to import ammonia?
CF Fertilisers UK intends to import ammonia due to projected high natural gas prices in the U.K. and the impact of carbon costs, making it more cost-competitive compared to producing ammonia at Billingham.
What products will CF Fertilisers UK continue to produce?
CF Fertilisers UK will continue to produce ammonium nitrate and nitric acid using imported ammonia.
How many redundancies could result from the closure?
The closure of the ammonia plant at Billingham Complex could result in up to 38 redundancies.
What steps will CF Fertilisers UK take regarding redundancies?
CF Fertilisers UK will enter into the required collective redundancy consultation process with its recognised union, Unite, and elected employee representatives. Some redundancies might be avoided through redeployment opportunities.
