The management of Rotem Amfert has imposed a lock out on the plant in the Negev following a decision by workers yesterday to intensify sanctions. Management is demanding that the union agree to negotiate efficiency measures at the Israel Chemicals Ltd. subsidiary which is facing sharply declining profitability. Yesterday the workers shut down the plant and prevented shipments as well as management from leaving the premises.
In response to the management move, the Histadrut Labor Federation has ordered all Israel Chemicals workers to stop work on Wednesday at 11:00 a.m. and show up to support Rotem Amfert workers at the plant. Following a meeting today the Histadrut placed two conditions for a resumption of negotiations between the union and management: an end to the lock out and a cancelling of the dismissal notices that have already been given to six of the 127 workers ICL has said it plans to fire as part of its recovery plan for the subsidiary.
Yesterday a company spokesman said Rotem Amfert is facing its worst crisis in years due to a sharp drop in phosphate and fertilizer prices that have made the company among the least competitive in the industry. The spokesman added that the layoffs are a painful but necessary measure to enable the company to compete on the international market.
OAO Uralkali reports that its trading arm Uralkali Trading SA has concluded an agreement with Federal Land Development Authority of Malaysia (FELDA) to create a joint venture for potash distribution. The joint venture will start operating Jan. 1, 2014, and will focus on securing potash deliveries to the plantations of FELDA and other government plantations in Malaysia and other countries.
“This joint venture is another step to further improve our sales net in Southeast Asia, which is a strategically important region for Uralkali,” said Uralkali acting CEO Viktor Belyakov. “It will also strengthen our relations with state customers in this region. Southeast Asian countries pay much attention to expanding agriculture production. Realization of such joint projects is a good opportunity for suppliers and customers to achieve long-term goals including increase in crop yields, ensuring food security and, consequently, growth in fertilizer consumption.”
Yara North America has filed for air permits to build a new plant in Tennessee, according to the Tennessee Department of Environment and Conservation. The plant would produce 50,000 tons per year of calcium nitrate, not calcium ammonium nitrate as was earlier reported.
The plant would be built at the U.S. Nitrogen Co.’s $220 million complex which is currently under construction in Mosheim, Tenn., in Greene County, in Eastern Tennessee, which will produce liquid ammonium nitrate. U.S. Nitrogen, which is owned by Austin Powder, Cleveland, Ohio, would pipe nitric acid to the plant.
While the air permit is being sought, sources say the plant is still being studied and a final agreement has not been made.
Also new, U.S. Nitrogen has also filed for an air permit to build a facility that would liquefy carbon dioxide gas, with a production capacity of approximately 270 tons per day. The company is in negotiations with potential partners on this venture. The new facility would significantly reduce carbon dioxide emissions.
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