Yara Tertre to close ammonia unit in major site overhaul

On October 14, 2024, Yara Tertre management informed worker representatives of a strategic proposal to transform the plant. The intended transformation would involve the closure of the ammonia unit, with a refocus on the production of premium nitrate fertilizers and industrial nitrogen chemicals, which are seen as the site’s most competitive offerings.

The decision comes after prolonged financial difficulties at Yara Tertre, driven by challenging market conditions, volatile energy prices, and high maintenance costs. Additionally, the site faces increasing pressure from tightening environmental regulations and the need to accelerate decarbonization, which has made ammonia production particularly unsustainable.

According to Michel Warzée, General Manager of Yara Tertre, the transformation is vital for achieving long-term profitability and maintaining quality jobs. He emphasized that the changes would allow the site to continue serving its European customers while preparing for the decarbonization of its operations. Yara’s strategy aims to strengthen the competitiveness of its premium products, including low-carbon fertilizers, while positioning for a more environmentally sustainable future.

As part of the plan, the site would source ammonia from other locations, shifting its focus to the production of 600,000 tonnes of premium nitrate fertilizers and 250,000 tonnes of high-value industrial products annually. A future transition to low-emission ammonia is also envisioned, which would enable the delivery of premium low-carbon nitrate fertilizers and contribute to reducing agriculture’s climate impact.

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In accordance with Belgian regulations on collective dismissals, Yara Tertre management presented this proposal during an Extraordinary Works Council meeting. The next steps involve informing and consulting workers’ representatives about the potential impact. If the plan is confirmed, production volumes at Tertre would decrease, potentially resulting in the dismissal of approximately 115 employees. However, the proposed transformation aims to secure over 200 jobs by ensuring the long-term future of the plant.

Warzée acknowledged the difficult nature of the announcement and expressed Yara’s commitment to supporting its employees throughout the process. He stressed that while the social implications are significant, the transformation is necessary to safeguard the plant’s viability.

Founded in 1905, Yara has grown into a global crop nutrition company, with 18,000 employees across 60 countries and a 2023 revenue of USD 15.5 billion. The Tertre plant, located in the Tertre-Hautrage-Villerot industrial zone, produces ammonia, nitric acid, and fertilizers, employing over 300 direct staff and around 100 contractors.