Potash to cut, curtail production at several facilities, cites 'market demand'
Potash Corporation of Saskatchewan outlined operational changes at its Cory potash facility as well as inventory adjustments at its Allan and Lanigan facilities. The operational changes at Cory include a move to producing only white potash with an expected operational capability of approximately 0.8M tonnes. The facility previously had an operational capability of approximately 1.4M tonnes and produced both red and white potash. The changes will result in a reduction of approximately 100 permanent employees and 40 temporary positions. About 350 employees will continue to work at the facility. The workforce reduction will primarily take effect in February with remaining changes occurring in 3Q17. The operational change is not expected to impact the availability or quality of products across the company's portfolio of operations, it said. "We are making this decision to optimize production to our lowest cost operations, including Rocanville and other Saskatchewan sites," the company noted. PotashCorp also indicated that, with the ramp-up of additional low-cost production from Rocanville and "consistent with the company's practice of matching supply with market demand," its Lanigan facility will curtail production for six weeks beginning January 2017 and its Allan facility will curtail production for 12 weeks beginning February 2017. The number of temporary layoffs associated with these inventory adjustments has not been determined, the company said. Reference Link