The J.R. Simplot Co., Boise, Idaho, reported on Sept. 21 that it has decided to close its fertilizer manufacturing facility in Lathrop, Calif., no later than Aug. 31, 2024. The company announced the decision now in an attempt to minimize disruption to employees, community members, customers, and other stakeholders.
“We recognize the very real and often difficult impact a plant closure has on people and the community,” said Garrett Lofto, J.R. Simplot President and CEO. “We want to thank all of our Lathrop employees who have supported our efforts. This decision does not reflect the effort, pride, and commitment they’ve shown over the years.”
Simplot said it has experienced decreasing demand for products distributed from its Lathrop facility and increasing operating costs at the location for several years. The Lathrop facility was built in the 1950s, and after thorough examination the company determined that updating the facility to meet current and future demands would not be feasible.
The closing timeline will enable Simplot to make sufficient plans for its continued support for customers who may be impacted. Simplot employs about 150 people at its Lathrop facility. Many employees will remain at the location through its closing date. The plant at one time had DAP/MAP capacity of 100,000 mt/y, according to the Green Markets Database.
“We are committed to our customers and partners and will work closely with them to minimize disruption and facilitate a smooth transition,” said Doug Stone, President of Simplot’s AgriBusiness Division. “We will continue to provide high quality products and excellent service to our fertilizer customers in California and throughout North America.”
The Lathrop outage could easily be made up from Simplot’s recent five-year agreement to take 100% of the MAP produced at Itafos Inc.’s Conda, Idaho, plant beginning on Jan. 1, 2024 (GM Sept. 8, p. 1).
Itafos puts Conda’s phosphate production capacity at 550,000 mt/y, which includes MAP, MAP with micronutrients, superphosphoric acid, merchant-grade phosphoric acid, and ammonium polysulfate. Approximate MAP capacity has been put at 340,000 mt/y, with 170,000 mt/y for the other phosphate products. The company also has hydrofluorosilicic acid capacity of approximately 27,000 mt/y (GM July 1, 2022).
Simplot also has phosphate production capacity of 500,000 mt/y at its Rock Springs, Wyo., facility, and 450,000 mt/y at its Pocatello, Idaho, plant, according to the Green Markets database.