Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

Nufarm announces changes to global manufacturing footprint

20.07.2020 15:45 "Agro Perspectiva" (Kyiv) Nufarm announced its decision to cease manufacture of insecticides and fungicides at its Raymond Road site in Laverton, Australia and curtail herbicide manufacturing at its operations in Linz, Austria.

Nufarm Managing Director and CEO Greg Hunt explained the changes form part of the company-wide program launched in March 2020 to improve financial returns.

«These are difficult decisions for our colleagues, however they are another step in building a stronger and more resilient business.

In March this year we expanded the performance improvement program we commenced in Australia to the rest of our business. While the program is ongoing, the analysis of our manufacturing footprint is well advanced. It shows that our MCPA synthesis and herbicide formulation operations remain competitive, however gaps have emerged in the competitive position of our 2,4-D synthesis and insecticide and fungicide formulation.

Todays decision follows careful consideration of both external market dynamics and the future needs of our business. We are confident it strikes the right balance between optimising sourcing cost and retaining flexibility within our global supply chain.

The performance improvement program is continuing across each of our regions and the corporate centre. It is a broad ranging program to improve every aspect of our business. A further update on progress of the program will be provided when we announce full year results».

Nufarm expects the combined initiatives announced today to deliver an annual improvement to earnings before interest, tax, depreciation and amortisation of up to AUD$15 million per annum once fully implemented.

One-off cash costs relating to the restructuring of approximately AUD$25 million will be partially offset by proceeds from the future sale of the Raymond Road property (proceeds from the future sale have not been incorporated in the estimate of cash costs).

Other non-cash costs related to the restructuring are expected to be approximately AUD$25 million.

Closure and sale of Raymond Road manufacturing site at Laverton, Australia

Insecticide and fungicide manufacture currently undertaken at the Raymond Road site in Laverton, Australia will be progressively phased out with the site prepared for closure and sale over the next 18 months. This is expected to generate an annualised EBITDA benefit of approximately AUD$5 million.

Nufarm Regional General Manager, Australia and New Zealand, Peter OKeeffe, said the changes would allow the company to support customers with competitive offers, while generating improved returns for Nufarm. «We know our customers value the quality and reliability of local production and closing any component of our local manufacturing capacity is not a decision taken lightly. However, our analysis tells us this is what we need to do to continue to provide a competitive offer for insecticides and fungicides and generate sustainable returns in our business».

Mr OKeeffe confirmed there was no impact on Australian herbicide manufacture and formulation as a result of todays announcement.

Cessation of 2,4-D synthesis at Linz, Austria

Nufarm will cease synthesis of the herbicide 2,4-D at the Linz site in Austria early in the 2021 calendar year. This is expected to generate an EBITDA benefit of up to AUD$10 million per annum once the changes are fully implemented. Formulation of other products currently manufactured at the Linz site is not impacted as a result of todays announcement.

Nufarm Europe Regional General Manager, Hildo Brilleman, commented, «We are working through a systematic program to reduce overhead costs and improve margins in our European business. While our 2,4-D synthesis team at Linz have made a tremendous effort to improve cost efficiencies, we have more financially viable sources of supply available within our global supply chain. Todays decision is one of many steps we are taking toward improving returns from our European business».

Agro Perspectiva

< Kernel oil-extraction plants processed 916 thousand tons of sunflower seeds in Q4 FY2020 All news for
20.07.2020
Saudi barley import tenders for July-September 2020 - 1.68 million MT >

18.05.2021  
13:33 ASTARTA Completed its Sowing Campaign 2021
17.05.2021  
16:47 CNH Industrial announces subsidiary notes offering
14.05.2021  
14:15 ASTARTA Started Raw Sugar Processing
12.05.2021  
14:01 For the MY 2021/22 forecasts Bangladeshs rice production to increase, assuming friendly weather and increased yield
12:51 Total Latvian wheat, rye, mixed grains, triticale, barley, corn, and oat production in MY 2021/22 is forecast at 3.2 MMT
07.05.2021  
13:22 Global cereal markets tighten as demand remains strong in 2020/21
12:25 International food prices continue rising in April
06.05.2021  
15:38 New Zealand. Total milk production is forecast at 22.2 MMT
05.05.2021  
16:47 CNH Industrial. Consolidated revenues of $7.5 billion (up 37% compared to Q1 2020)
13:21 Australia. Wheat production is forecast at 27 MMT in MY 2021/22
30.04.2021  
14:21 ASTARTA Finished Sugar Beet Planting
29.04.2021  
11:49 Manitou Group: Q121 revenues of 471m, +12% vs. Q120
11:39 BASF increased sales by 2.6 billion compared with the first quarter of 2020 to 19.4 billion
28.04.2021  
17:00 Spain: Spanish Cheese Exports May Rebound in 2021
27.04.2021  
16:47 Argentina. Wheat production is estimated at 20.5 million tons in 2021/2022
26.04.2021  
16:35 Small family farmers produce a third of the worlds food
10:09 Industrial production in Ukraine 2.1% up in March 2021 - statistics
24.04.2021  
07:20 Finance Ministry proposes to change criteria for land valuation in settlements by 2023
22.04.2021  
11:28 Giving a voice to soil organisms our silent allies in the fight against hunger
21.04.2021  
09:53 NBU sends UAH 24.4 bln of profit to state budget
20.04.2021  
11:50 Vietnam. Soybean meal demand for feed use is forecast to increase in MY2021/22 as the swine herd repopulates
16.04.2021  
14:11 NBU raises key policy rate to 7.5%
14.04.2021  
17:10 Brazil Meat Exports Continue to Grow
13.04.2021  
16:25 Coffee is considered a priority crop by the Angolan Government
12.04.2021  
11:20 Brazil Soybean Exports Record Large in March
10:18 Burma Rice Exports Disrupted Amid Coup
08.04.2021  
21:05 Positive cereal crop prospects in 2021
20:35 Global food prices rise for 10th month in a row
04.04.2021  
10:16 A spicy agricultural heritage: theres more to wasabi than meets the eye
02.04.2021  
16:00 Turkey. Cattle numbers to increase 1 percent in 2021 to 18.3 million head - USDA
13:25 Japan To Begin Enforcement of Organic Regulations for Turkey Products
26.03.2021  
13:55 Korea. Overall demand for beef and pork remains strong
24.03.2021  
15:55 Cargill purchases Precision Ag, expanding its Canadian crop inputs business
23.03.2021  
21:28 Ukraine's GDP down by 4% in 2020 statistics
21:15 Green Climate Fund approves $80 million in FAO-led projects in Congo and Jordan
20:31 Ukrainian banks see profit fall by 60% in Jan-Feb - NBU
21.03.2021  
09:49 Business and govt agree to stabilize prices for socially important goods - EBA
16.03.2021  
16:35 Mexicos chicken meat production, consumption, and imports are projected for 2021
10.03.2021  
21:07 India Corn Exports Competitive Regionally
07.03.2021  
23:15 Early estimate points to record 2021 wheat output
22:43 FAO Food Price Index rises for ninth consecutive month in February
04.03.2021  
12:33 BASF achieved its 2020 Palm Commitment
01.03.2021  
11:43 BASF Group: Strong performance in Q4 2020 due to higher volumes and prices
16.02.2021  
11:05 Kernel asks AMCU for permission to buy CascadeAgro, 12 more farms of Khomutynnik
13.02.2021  
18:36 Ukraine: EIB provides 320 million EURO for COVID-19 vaccines and improvements in operational resilience at Boryspil International Airport
11.02.2021  
09:47 Soybean Buyers Turn Attention to Brazils 2021 Harvest
29.01.2021  
11:15 Global orange production for 2020/21 is forecast to rise 3.6 million MT from the previous year to 49.4 million
28.01.2021  
15:20 USDA attache increased its estimate for South Africas 2020/21 MY total corn crop by 14% to 16 million tons
26.01.2021  
17:10 Economy Ministry announces market agreement to limit corn export from Ukraine in 2020/2021 MY to 24 mln tonnes
13:33 China Lowers Applied MFN Tariff Rates and Revises Out of Quota TRQ Rates

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2021 © Agrarika, ltd.
tel.: +380 44 5934543; +380 44 5934540
e-mail: client@agroperspectiva.com