PotashCorp 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 0.8 million tonnes. The facility previously had an operational capability of approximately 1.4 million 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.
“This is a difficult day for our employees and their families, and we are committed to helping those affected through this transition,” said Mark Fracchia, President PCS Potash. “We are making this decision to optimize production to our lowest cost operations, including Rocanville and other Saskatchewan sites, where new capacity was added and employment levels have risen by approximately 265 since 2014.”
The workforce reduction will primarily take effect in February with remaining changes occurring in the third quarter of 2017. PotashCorp is intent on providing severance packages, assistance, transition programs and information on existing openings at other sites for affected employees.
The operational change is not expected to impact the availability or quality of products across the company’s portfolio of operations and, as such, impacts to customers are not anticipated.
PotashCorp also indicated today 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 as the company is assessing the opportunities for reassigning positions to capital and maintenance projects during the down-time.
For more information:
www.potashcorp.com
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Job cuts at PotashCorp to lower production costs
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