Sumitomo Chemical has decided to suspend its chemical fertilizer manufacturing facility at its Ehime Plant, in Niihama City, Ehime Prefecture, by the end of September 2024.
“In the fertilizer business, we have begun reviewing the product lineup with the aim of structural transformation to ensure business continuity,” the company said in a statement. “In this context, we have decided to suspend production of chemical fertilizers, which we have decided to suspend because we have judged that it will be difficult to secure stable profits over the medium- to long-term due to aging manufacturing facilities and increased renewal costs, although we have been striving to rationalize costs in response to the mature domestic market environment and the severe business environment such as the recent rise in raw material prices. We will continue to manufacture coated fertilizers, liquid fertilizers, ammonium sulfate, and nitrate at the Ehime Plant.”
Sumitomo is in the midst of a green transformation, planning to halve its emissions by 2030 and be carbon neutral by 2050. It noted that its greenhouse gas (GHG) emissions reduction targets were certified by the Science Based Targets (SBT) initiative in October 2018, and it was the world’s first diversified chemical company to receive the certification.
The company said it will continue to contribute to safe and secure agriculture by developing and providing functional liquid fertilizers, including degradable coated fertilizer technology and biostimulants. In that regard, the company has announced the purchase of US-based FBSciences Holdings Inc. (see Related Story).
Sumitomo is actively pursuing its own international clean ammonia production (see Related Story), but in December 2021, agreed to study the possibility of using Yara’s clean ammonia as a raw material for petrochemical products, as well as utilizing it as a source of clean energy at the company’s production sites as part of its fuel conversion efforts.
It also said it would explore collaborative projects with Yara, including stocking Yara’s clean ammonia at storage facilities at Ehime Works, which it said is one of the largest of its kind in the country.
Also in December 2021, Sumitomo, along with three other Japanese chemical companies – Ube Industries, Mitsui Chemicals, and Mitsubishi Gas Chemical – agreed to launch a joint study into securing a stable supply of clean ammonia.