The Mosaic Co., Plymouth, Minn., said June 18 it will close its idled Plant City phosphates manufacturing facility in Hillsborough County, Fla. 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 (GM Nov. 3, 2017). An announcement was expected, as Mosaic said in May a final decision on the fate of the plant would be announced by the end of June (GM May 10, p. 1).
“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 recognize a notable non-cash charge of up to $390 million 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.
The small team of Mosaic employees currently responsible for care and maintenance activities will remain on site to manage closure and compliance responsibilities over the next several years. About 430 workers were impacted by the idling of the plant in late 2017. The company told The Lakeland Ledger that 200 found jobs at other locations, 130 took early retirement, and 100 received severance.
Mosaic bought the plant in 2014 from CF Industries Holding Inc., Deerfield, Ill. (GM March 24, 2014; Nov. 4, 2013). Operational since 1975, Plant City produced approximately 1.3 million mt of finished phosphates in 2017, its last year of operation, though capacity was put higher at closer to 2 million mt.