Nufarm will cease manufacturing insecticides and herbicides at its Raymond Road site in Laverton, Australia. It will also halt production of curtail herbicide in Linz, Austria.

Chief executive Greg Hunt said: “Today’s decision follows careful consideration of both external market dynamics and the future needs of our business. We are confident it strikes the right balance between optimising sourcing cost and retaining flexibility within our global supply chain."

Nufarm expects to derive an annual $15 million lift to EBITDA from the plant shutdowns once fully implemented. Non-cash costs related to the restructure are estimated at $25 million.

Shares closed up 3 cents at $4.09.