The UK’s last fertiliser plant is to permanently close its production facility in the North East with the loss of about 40 jobs, it has been confirmed this evening (Tuesday, July 25).

CF Fertilisers says it has decided to close the ammonia plant at its Billingham complex, which has been mothballed since August 2022, because producing ammonia would not be cost-competitive for the long term. 

The move has been criticised by Labour’s Stockton North MP Alex Cunningham, who has blasted the Government for abandoning “any pretence at an industrial strategy”.

Read more: CF Fertilisers to halt ammonia production at Billingham factory

The company says it intends to continue producing ammonium nitrate using imported ammonia.

The plant was closed down on a temporary basis in August 2022 following a series of shut-downs, sparking fears of a potential shortage of CO2 – a by-product of the production which is widely used in the food and drink industry.

In a statement CF Fertiliser 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.

The statement said: “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.”

"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 UK 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."

Stockton North MP Alex Cunningham, who said he has been working with the industry to find a sustainable way forward, has denounced the Conservative Government following the decision. 

He said: “An abject lack of action and urgency to support energy intensive industries from the Conservative Government has led to today’s announcement from CF Fertilisers.

“Time and again, long before the temporary closure of the ammonia plant last year and the plant shut-downs before that, I have been calling on Ministers to get their act together and support industries like CF Fertilisers.

Read next:

Get the latest news, sports, and entertainment delivered straight to your device for just £4 for 4 months. Click here

"They have stuck their heads in the sand, prevaricated and passed the buck instead of taking action to address the needs of this industry. Any pretence at an industrial strategy has been abandoned by Ministers who simply couldn’t care less, and now good local jobs are at risk as a result.

“I’m also disappointed CF bosses have taken this decision. Jobs are being sacrificed for short-term cost-effectiveness and it feels like the “temporary closure” last year was a way to soften the blow of a permanent one down the line. I hope employees can be redeployed in the organisation and my office is on hand to work them and Unite where necessary.”