Canada's Nutrien idles three Brazil fertilizer blenders indefinitely
ca.finance.yahoo.com
Ana Mano
Updated Tue, May 28, 2024 at 2:21 p.m. PDT·2 min read
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By Ana Mano
SAO PAULO (Reuters) -Nutrien, the world's largest producer of potash, said on Tuesday that it is indefinitely halting three fertilizer-blending facilities in Brazil as part of a broader reorganization to weather tough market conditions.
Nutrien confirmed the move, which had been announced only to employees, in a statement to Reuters, adding that it was part of a strategy to prioritize efficiency and profitability. The company said that it will rely on partners and on its two other blenders in Brazil to supply fertilizer to local customers.
"This decision allows Nutrien to reactivate (the plants) in the future when there is a more stable market scenario," the statement said.
Two of the plants are located in Goias state and the other is a new blender in Minas Gerais that has not yet started operations.
The move to idle plants in Brazil follows a decision to put assets in Argentina, Chile and Uruguay up for sale, part of a regional turnaround first reported by Reuters.
Nutrien's troubles in South America come as fertilizer companies struggle with market volatility since Russia's invasion of Ukraine sent prices skyrocketing in 2022 only to collapse the next year as global supplies stabilized.
Since April 2023, several senior Nutrien executives were fired or quit the company in Brazil. The exodus has continued this year, according to three sources with direct knowledge.
Nutrien did not have an immediate comment on the departures.
One of the sources, who requested anonymity to discuss confidential information, said the company has also decided to close an older blending facility in Sao Paulo state, although it was not announced yet.
Nutrien did not comment on the future of that blender. It also declined to comment on any layoffs related to the idling of the three plants. |
