A FERTILISER company has announced plans to focus its manufacturing operations exclusively in the region – but has announced other plans which could see redundancies on Teesside.

CF Fertilisers UK has a manufacturing facility in Billingham, which is the largest ammonia, ammonium nitrate (AN) and carbon dioxide (CO2) production facility in the country.

The company ran into difficulties last year, when rocketing gas prices led to production being halted – restlting in the Government stepping in to strike a deal.

It has now said it plans to close its Ince manufacturing facility near Chester, putting up to 283 people at risk of redundancy.

Read more: Agreement reached to keep CF Fertilisers in Billingham open

The site has not produced ammonia since last September.

It plans to focus its manufacturing at Billingham instead. 

However, it plans to close Billingham’s operations centre, which could result in up to 33 redundancies at the facility.

The move will allow it to optimise manufacturing in Billingham, the company said. 

Stockton North MP Alex Cunningham said he hoped redundancies would be kept to a minumim and urged ministers to consider a Government-backed industrial strategy to address long-term sustainability.

He said: “While I’m pleased that CF Fertilisers’ Billingham site has been recognised as the best location to ensure long-term sustainability of its ammonium nitrate production and that the company is now seeking to restructure its operations around this site, it is disappointing to hear that there will be redundancies both at Chester and at Billingham as part of this reorganisation.

I do hope that these redundancies are kept at a minimum and CF Fertilisers work closely with trade unions to ensure this and I have already talked with a director from CF Fertilisers about this and their wider plans today.

"I am well aware the company has been under pressure from all many of factors from the cost of gas and gas transportation to carbon costs and the related crisis in the supply of its by product, CO2 to hospitals and industry, when both plants were shut down last year so robust action was clearly necessary.   

"Everyone hopes this latest plan will ensure the long-term sustainability of what will be the only fertiliser plant in the UK but it is clear that the Government’s unwillingness to act on the issues faced by the industry, relying solely on the companies taking the initiative, is also a factor here. It is clear that we need a Government-backed Industrial Strategy and I again urge Ministers to look at this seriously.”

CF Fertilisers will also adopt a global operating model for corporate functions, which could result in up to 55 redundancies.

This would would entail the permanent transfer of select business activities to its headquarters in the United States, with certain functions continuing to be performed in the UK to support the Billingham manufacturing facility and UK business

The company will be entering into collective redundancy consultation with its recognised union, Unite, and elected employee representatives regarding its redundancy proposals

 Managing director Brett Nightingale said: “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

 “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.”

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The company says it expects global nitrogen industry conditions to remain challenging for nitrogen producers in the UK and Europe, due to the cost of natural gas, which is the principal raw material and primary fuel source used in the ammonia production process for manufacturing facilities in the region.

Operations at both Billingham and Ince manufacturing facilities were halted last September but resumed that month in Billingham after an interim agreement reached with the UK government to cover the costs associated with restarting the ammonia plant to produce CO2 for the UK market.

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