CF Fertilisers UK Limited, a subsidiary of CF Industries Holdings, Inc., has announced proposals to restructure its operations in the United Kingdom 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.

 

CF Fertilisers UK proposes to focus its manufacturing operations in the UK exclusively at the Billingham manufacturing facility in Teesside. Billingham is the largest ammonia, ammonium nitrate (AN) and carbon dioxide (CO2) production facility in the country

 

The Company believes that the facility is better positioned for long-term sustainability as it has sufficient capacity to meet all forecasted domestic demand for AN 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

 

Aligned with this approach, the Company is proposing to:

- Permanently close the Ince manufacturing facility near Chester, which could result in up to 283 redundancies at the site; the Ince manufacturing facility has not produced ammonia since September 2021

- Adopt CF Industries’ global operating model for corporate functions, which could result in up to 55 redundancies; this would entail the permanent transfer of select business activities to CF Industries’ headquarters in the United States, with certain functions continuing to be performed in the UK to support the Billingham manufacturing facility and UK business

- Optimise Billingham manufacturing operations by closing Billingham’s operations centre, which is a legacy of the multiple utilities and chemical businesses across the broader Billingham site, and reorganise the maintenance and support team, which could result in up to 33 redundancies at the facility

- CF Fertilisers UK anticipates that some of the proposed redundancies might be avoided by redeployment opportunities.

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

- Additionally, in order to provide greater resilience to operational issues, low-priced imports and macro-economic forces, the Company will:

- Enter into a separate consultation process under applicable pensions legislation, including with its pension trustees, regarding a proposal to reduce the maximum employer contribution level for the defined contribution (DC) pension scheme; there are no changes proposed for defined benefit (DB) pension schemes

- Discuss proposed revisions to current pay and conditions arrangements with Unite

 

“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.”