Blow for future of Cheshire factory as rescue bid collapses

The former head of the Army, Lord Dannatt, last week fronted a group of UK-based investors to buy CF Industries' fertiliser plant in Ince.

It follows the news from June that 283 jobs were to be axed as CF Fertilisers UK Limited announced it was to close its Ince site, while keeping the Billingham factory open, as part of a restructuring of its UK operations for long-term profitability and sustainability.

CF Industries produces 60 per cent of Britain's CO2 supplies via agricultural fertiliser production, but soaring energy costs last September resulted in both the Ince and Billingham plants closing. The latter reopened thanks to Government support.

In its announcement on Wednesday, June 8, the company said: "The company believes that the [Billingham] 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."

A group of investors had been in talks with the firm, but the final offer for the facility was rejected by the company last week.

It came amid speculation CF Industries would see the Ince plant, if saved and taken over by a different company, would be seen as a competitor.

There is now a race against time to save the plant, which could be closing next month.

Speaking in the House of Commons recently, Ellesmere Port and Neston MP Justin Madders said he had met Secretary of State for Environment, Food and Rural Affairs George Eustice to discuss the future of the Ince site.

Asking the Secretary of State a question, he asked: "I'm pleased to see there is interest in purchasing in the plant. Does he agree with me that despite the ongoing challenges the industry faces, the parent company has increased dividends by 33 per cent in the first quarter and there is actually no reason why the plant cannot be sold as a going concern?"

In response, Mr Eustice said: "I entirely agree with the honourable gentleman. Although CF Fertilisers have chosen to consolidate their UK operations into Billingham, the Ince plant remains viable and the best commercial exit from that plant for CF Fertilisers would be to progress an offer around selling it as a going concern.

"There are many skilled people in his constituency who've been working at that plant and the best outcome for all concerned would for it to be sold as a going concern."

The Ince CF Fertilisers plant first started producing ammonia in 1965. While it has the facility to produce 'NPKs', which are compound fertilisers that blend nitrogen with other nutrients, including phosphate, potash and sulphur, the firm said such operations are currently economically unviable, as manufacturing it would result in heavy losses.

However, the most recent financial report for CF Industries showed revenue was $2.9 billion, up more than 173 per cent year-on-year and more than $246 million higher than expected by analysts.

A demand for fertilisers is expected to increase in the coming months as planting season approaches in certain parts of the world. Additionally, the blockade of agricultural terminals in ports of the Black Sea – due to the war in Ukraine – has meant there could be increased fertiliser demand to grow crops in African countries and Southeast Asia to head off a potential food crisis.

A spokesman for CF Industries said: "CF Industries has spoken with several parties. In the course of those discussions, at no point thus far have the parameters of any transaction – proposed or outlined – appeared likely to secure the long-term future of the Ince manufacturing facility and its employees."