More than 370 jobs are set to be axed by fertiliser firm CF Industries as part of a UK restructure which would focus all manufacturing operations in the North East.
The company is proposing to close its Ince manufacturing facility near Chester, which could result in up to 283 redundancies at the site.
The firm wants to focus its manufacturing operations in the UK exclusively at the Billingham manufacturing facility in Teesside – the largest ammonia, ammonium nitrate and carbon dioxide production facility in the country.
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CF Fertilisers UK Limited, a subsidiary of New York stock exchange listed CF Industries Holdings, Inc, said the restructure is needed “to position the business for long-term profitability and sustainability and enable it to continue to supply fertiliser, carbon dioxide and other industrial products to its domestic customers”.
The company says the manufacturing facility in Ince, near Chester, has not produced ammonia since September 2021.
A further 55 redundancies are set to be made by remodelling the UK operations to CF Industries’ global operating model for corporate functions – permanently transferring of select business activities to its headquarters in the US.
Last year the firm struck a deal with the Government to restart production at its Billingham plant, to ensure availability of carbon dioxide for industries including the food sector.
Production ground to a halt in September amid rocketing gas prices, which was making its operations unviable. The suspension led to knock-on problems in the food industry, for which CF is the main UK supplier of carbon dioxide, triggering warnings of looming shortages in supermarkets.
The company said it believes the Teesside facility is better positioned for long-term sustainability as it has sufficient capacity to meet all forecasted domestic demand for ammonium nitrate fertiliser from CF Fertilisers UK, is more efficient than the Ince manufacturing facility, has an installed industrial customer base, and has the ability to import ammonia.
However, it still plans to close Billingham’s operations centre, and reorganise the maintenance and support team, which could result in up to 33 redundancies at the facility.
The company said it anticipates that some of the proposed redundancies might be avoided by redeployment opportunities.
“The people and facilities that make up CF Fertilisers UK are part of a proud, 100-year history of providing customers in the UK with products vital to the country’s food security and industrial activity,” said Brett Nightingale, managing director, CF Fertilisers UK.
“However, as a high-cost producer in an intensely competitive global industry, we see considerable challenges to long-term sustainability from our current operational approach. Following a strategic review of our business, we believe that the best way to continue our legacy of serving customers in the UK is to operate only the Billingham manufacturing facility moving forward while addressing cost pressures throughout our business.
“We expect to begin collective redundancy consultation with union and other employee representatives shortly. We intend to provide our team with all possible support through what we recognise will be a very challenging time for them.”
