Orica reduce ammonium nitrate capacity, may see job cuts

Orica to reduce ammonium nitrate capacity, may see job cuts

11:49 AM, 7th July 2015
Orica to reduce ammonium nitrate capacity, may see job cuts
Orica's Yarwun site (night view) where the company is reducing ammonium nitrate capacity.

MELBOURNE, AUSTRALIA: Orica Ltd said that in response to challenging market conditions, it is adjusting its operating model at the Yarwun site in Gladstone and will reduce ammonium nitrate capacity.

“Today, we have begun consulting with our employees to understand and address any impacts on the workforce. We expect there will be some impact on staffing levels from this decision,” said Dave Buick, General Manager, Yarwun, Orica.

“While we remain confident in the long term outlook for ammonium nitrate, there is a near term oversupply in the market. As a result, we have made a preliminary decision to adjust the capacity requirements at Yarwun. This decision follows extensive analysis of the market and was previously flagged in our interim financial results market briefing in May this year,” said Buick.

“However, the fact remains that Orica is operating in a highly competitive market in which supply of ammonium nitrate is higher than demand levels, and we need to pursue strategies that secure the long-term viability of the business. There will be no impact on supply of ammonium nitrate to our customers,” added Buick.

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