- Nufarm Finance (NFN) has revealed it will shut its Raymond road manufacturing plant in Laverton, Melbourne
- The plant manufactured insecticides and fungicides for the company
- Nufarm has also said it will close its Linz, Austria herbicide manufacturing plant
- The company expects to save $15 million a year in earnings before interest, taxes, depreciation, amortisation (EBITDA) due to the measures
Nufarm Finance (NFN) has announced it will be closing its Raymond road manufacturing plant in Laverton, the site of its insecticide and fungicide manufacturing work.
The Laverton plant is located in the northern Melbourne semi-industrial suburb of Laverton north.
The manufacturing plant will be wound down in a phased shutdown over the next 18 months.
Nufarm said the decision came about due to external market dynamics hitting the business, along with Nufarm looking to the “future needs of our business.”
Nufarm committed in March to go searching through the business for any and all cost savings measures it could find.
These measured are expected to boost earnings before interest, taxes, depreciation, amortisation (EBITDA) by $15 million for the year, as operations cease at the site.
However, the company will still incur restructuring costs of approximately $25 million, which should be offset somewhat by the sale of the Raymond road site.
The sale price of Raymond road has not been released.
The company has also stated it will no longer manufacture herbicides and its plant in Linz, Austria.
Nufarm’s Managing Director and CEO, Greg Hunt, said the changes formed part of the company’s 2020 program, launched when coronavirus struck in March to tighten the belt within the business.
“These are difficult decisions for our colleagues; however, they are another step in building a stronger and more resilient business,” Greg said.
“In March this year, we expanded the performance improvement program we commenced in Australia to the rest of our business,” he continued.