Incitec Pivot to close Victorian phosphate factory

Company News

by Rachael Jones

Incitec Pivot (ASX:IPL) is to close a phosphate factory in Victoria at the cost of $13 million.

The company manufactures, markets and distributes a range of industrial chemicals, fertilisers and explosives says it will consolidate operations to its Geelong site.

The company is predicting a drop of $20 million in its first half FY19 EBIT compared to the pcp.

This is a result of the dry weather in Eastern Australia, seeing sales drop.

Also, as previously announced there is a $100 million impact of the rail outage caused by February's Queensland floods.

It seems unlikely at this stage that there will be any substantial recovery of those lost volumes in the second half.

Shares in Incitec Pivot (ASX:IPL) closed 1.3 per cent higher at $3.16 yesterday