USA: Plant Operations Mosaic Company to Shut Down Phosphates Manufacturing Plant
The Mosaic Company’s plant in Florida produced 1.3 million tonnes of finished phosphates in 2017. However, post this period, the unit was left idle owing to the facility’s higher costs and the overall phosphate market conditions across the globe.
Minnesota/USA – The Mosaic Company has recently announced that it will close its idled Plant City phosphates manufacturing facility in Hillsborough County, Florida.
The small team of Mosaic employees that are currently responsible for care and maintenance activities will remain on site to manage closure and compliance responsibilities over the next several years.
Operational since 1975, Plant City produced approximately 1.3 million tonnes of finished phosphates in 2017, its last year of operation. The plant was idled in late 2017 because it was one of the higher cost phosphates facilities in Mosaic’s Florida Operations and due to global phosphate market conditions.
“Our decision to close the Plant City phosphate facility reaffirms our commitment to low-cost operation,” said Mosaic President and CEO Joc O’Rourke. “We will continue to meet global demand for high-quality phosphate fertilizers with production from our low-cost facilities in Florida, Louisiana, Brazil and Peru, and through our joint venture in Saudi Arabia.”
During the second quarter, Mosaic expects to recognise a notable non-cash charge of up to 390 million dollars for the permanent closure of the facility, including asset write-offs and an increase of the asset retirement obligation liability. Annual cash payments to manage the closure of the facility over the next five years are expected to be similar to payments incurred while the plant was idle in 2018. Mosaic will seek to mitigate a portion of closure costs by evaluating innovative approaches to water management and to repurposing part of the facility for productive use.