CF Fertilisers UK plans to close ammonia plant at Billingham

Fertiliser manufacturer CF Fertilisers UK, a subsidiary of CF Industries, has announced it intends to permanently close its ammonia facility at Billingham, following the plant being idle for the past 10 months.

The proposed closure will leave the UK more reliant on imported ammonia.

See also: NFUS to take fertiliser companies to CMA over profiteering

Forecasts by the company found it would be more cost-effective in the long term to import ammonia than to produce it in the UK due to high UK natural gas prices and carbon costs.

A supply-demand imbalance for ammonia production had also reportedly been created in the UK, with some of CF Fertilisers’ ammonia customers, which accounted for a significant volume of trade, shutting down their UK operations.

The company said the proposal would also allow it to secure the long-term sustainability of its ammonium nitrate (AN) business in the UK and more efficiently serve its customers.

A spokesperson for CF industries added: “We intend to continue to produce ammonium nitrate fertiliser and nitric acid at the site with imported ammonia.”

But NFU deputy president Tom Bradshaw said the decision was “concerning” and exposes the UK fertiliser market further to global volatility. 

“Availability of fertiliser is a crucial element of domestic food security and relying on importing ammonia from global markets exposes British fertiliser production to possible long-term risks,” he said.

“It’s important that the government now looks closely at how this shift to a reliance of imported ammonia could impact our domestic food production, and highlights the need to maintain access to all nitrogen fertiliser products, including urea.”

Up to 38 redundancies are likely to be made, although some staff may be relocated within the remaining business.