PotashCorp issues 940 layoffs, halts output at 3 plants
17 March 2009 15:58 [Source: ICIS news]
HOUSTON (ICIS news)--Fertilizer major Potash Corporation of Saskatchewan (PotashCorp) said on Tuesday it will temporarily halt production and issue short-term redundancy notices to 940 workers at three Canadian mines in April.
The move is related to the company's announcement on Monday that it would curtail potash production by another 1.5m tonnes in 2009, bringing its total capacity drawdown to 3.5m tonnes for the year.
"Customers around the world have continued to stand on the sidelines in the short-term, which has resulted in slow sales in the first quarter," PotashCorp spokesman Bill Johnson said.
Three potash facilities in Canada's Saskatchewan province will stop output completely for at least two weeks next month.
At PotashCorp's Rocanville plant, 300 workers will be out of work from 5 April to 2 May when capacity is idled.
In Allan, where 240 workers will receive notices, and Lanigan, where 400 employees will be affected, output will be suspended from 19 April until 13 June, according to Johnson.
PotashCorp made identical staffing and production moves at the three plants on 18 January and 15 March.
The Fertilizer Institute said North American inventory statistics for February show potash stocks have jumped 110,00 tonnes month-over-month with inventories 42% higher than the 5-year average, according to a research note from Citigroup fertilizer analyst PJ Juvekar.
Potash production at the Rocanville mine in 2008 was 2.834m tonnes, 2.141m tonnes at Lanigan and 1.093m tonnes at Allan, which was down from usual levels following a labour dispute during the year.
For more on PotashCorp's Rocanville, Lanigan and Allan plants, visit ICIS plants and projects
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By: Ryan Hickman
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