ORICA LIMITED Orica today confirmed that in response to challenging market conditions, it is adjusting its operating model at the Yarwun site in Gladstone.
Yarwun General Manager, Dave Buick, said: "While we remain confident in the long term outlook for ammonium nitrate, there is a near term oversupply in the market.
"As a result, we have made a preliminary decision to adjust the capacity requirements at Yarwun. This decision follows extensive analysis of the market and was previously flagged in our interim financial results market briefing in May this year.
"Today, we have begun consulting with our employees to understand and address any impacts on the workforce. We expect there will be some impact on staffing levels from this decision.
"However, the fact remains that Orica is operating in a highly competitive market in which supply of ammonium nitrate is higher than demand levels, and we need to pursue strategies that secure the long-term viability of the business.
"There will be no impact on the security of supply of Ammonium Nitrate to our customers as a result of this decision.
"Yarwun is a strategically important manufacturing site for Orica, and we remain committed to the operation and our strong presence in the Gladstone area," he said.
Analysts' Contact
Delphine Cassidy, Investor Relations
Mobile +61 419 163 467
Sam Stevens
General Manager Corporate Communications
Mobile +61 400 693 915
sam.stevens@orica.com
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