AUSTRALIAN farmers will have one less local option for fertiliser after Incitec Pivot announced it would close its Gibson Island manufacturing plant in Brisbane due to a lack of a viable gas supply.
IPL will cease manufacturing operations at the site at the end of the current natural gas feedstock supply arrangements which expire at the end of December 2022.
Officials from the company said in an announcement to the Australian Stock Exchange that after that they may look to repurpose the facility to produce green ammonia, should a feasibility study be favourable.
While IPL said fertiliser products such as urea and sulphate of ammonia previous made at Gibson Island will be sourced internationally, farmers have concerns about increasing the reliance on imported product due to issues with the supply chain since the COVID-19 pandemic.
IPL said its Brisbane fertiliser distribution centre operation will continue beyond the closure of the manufacturing operations.
The decision to close the Gibson Island manufacturing facility after more than 50 years of operation is expected to impact up to 170 IPL employees.
IPL managing director Jeanne Johns, said IPL's first priority was to look after its employees impacted by the decision.
"The wellbeing and safety of our loyal employees is our key priority during the next 14 months.
"We will be working with our people and offering them whatever assistance we can," Ms Johns said.
She said the company would continue to work with its customers as it moved to transition to an import-based model.
"It is disappointing for our people and Australian manufacturing that we could not reach a suitable commercial gas supply agreement to continue the operation of the Gibson Island facility from processing natural gas, however we look to create new opportunities aligned to the company's forward strategy" she said.
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Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
