26 September 2012 11:23 [Source: ICIS news]
LONDON (ICIS)--Australian fertilizer producer Incitec Pivot Ltd (IPL) on Wednesday announced it will defer plans for a new ammonium nitrate (AN) manufacturing plant at its existing fertilizer facility in New South Wales (NSW) until at least 2014.
In a short statement to the country's stock exchange, IPL revealed it had suspended its A$17m ($17.6m, €13.7m) feasibility study into the proposed development of the AN complex at its Kooragang Island site in Newcastle.
The Melbourne-headquartered company blamed “high construction costs” and the “anticipated reduction in demand for AN” for its decision, with the future of the state-of-the-art plant now hanging in the balance.
“The decision on whether to proceed with the development has been deferred for at least two years,” the firm added. “At this time, the project has not met IPL’s strict financial hurdles.”
($1 = €0.77)
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