Incitec Pivot Fertilisers confirms the end of its Geelong manufacturing plant

It’s the end of an era at a northern Geelong manufacturing plant, with confirmation of its closure and the loss of 40 direct jobs and just as many contract roles.

Incitec Pivot has announced closing its manufacturing plant in North Shore.

A company with an almost 100-year history in Geelong has announced the closure of its local manufacturing plant, resulting in the loss of 40 direct jobs and just as many contract roles.

Incitec Pivot made the announcement to the ASX on Monday as part of its full-year results, confirming its North Shore manufacturing operations would cease by the end of next year.

The company has long manufactured single super phosphate (SSP) fertiliser at the Seabreeze Pde site, but has now committed to transitioning it to an import facility.

In an email to staff Incitec’s Scott Bowman, president of the company’s struggling fertiliser division, said the decision came after a review of its Geelong operations.

“The review found we cannot continue to operate the Geelong SSP plant due to ongoing, unsustainable input costs and competition from cheaper imported products from countries with lower input and production costs,” he said.

“These factors combined have made the manufacturing of SSP no longer economically viable at Geelong.”

Former federal Labor leader Bill Shorten (second from left) and Corio MP Richard Marles (right) during a visit to Incitec Pivot’s Geelong base in 2017. Picture: Mark McQuillan.

Incitec’s primary distribution centre and regional office in Geelong are expected to remain key parts of the company’s distribution business, employing 70 direct employees and up to 80 contractors on an ongoing basis.

“We are targeting the end of 2025 for the cessation of manufacturing of SSP and transition to an import model,” Mr Bowman said.

“We will be working closely with all of our people in Geelong, as well as our suppliers and customers, to ensure a smooth transition.”

Once manufacturing ceases at the site, imported product will be bagged in North Shore and sent to farmers across Australia’s east coast.

The distribution centre will offer granular blends, including SSP, and liquid fertiliser blends and coatings, a spokesman said.

One employee said the closure came as a shock because many expected Incitec would sell the site as part of its move out of the fertiliser industry.

Jim Traynor of the Australian Manufacturing Workers’ Union said the closure was a blow to Geelong, particularly given Incitec’s long association with the city.

Local state MP Ella George said her office would assist workers to transition and re-train for new roles.

“My thoughts are with the employees who are impacted and their families,” she said.

Corio MP Richard Marles said the closure was “deeply upsetting news for workers and our community”.

“We want to see a strong local manufacturing sector in Geelong, and I am committed to working with my colleagues federally and within the Victorian Labor government to support our local workforce into the future,” he said.

Incitec chief Mauro Neves, a former BHP executive who started in the role earlier this year, said the Geelong team had consistently delivered high quality product and sustained production despite challenges with plant and equipment.

“Incitec Pivot Fertilisers is proud of its heritage in Geelong, and it was a very difficult decision to cease manufacturing after nearly 100 years,” he said.

Then opposition leader Tony Abbott and Corangamite candidate Sarah Henderson at Incitec Pivot in 2012.

Incitec wants to offload its fertiliser business so it can focus solely on the explosives industry, with its Dyno Nobel business posting a big jump in earnings before tax to $458m for the period.

Its history in fertiliser stretches back more than a century with the formation of the Phosphate Co-operative Company of Australia Limited, which later became Pivot Limited.

Mr Neves wants to make Incitec an explosives-only company within the next 18 months.

Originally published as Incitec Pivot Fertilisers confirms the end of its Geelong manufacturing plant