Nufarm to shut Australian pesticide plants

Australian agriculture chemicals company Nufarm recently said it would close two local manufacturing plants to reduce costs, as it grapples with the loss of key distribution contracts.

The Melbourne-based company suffered a severe hit to revenue last year after it lost separate contracts to distribute crop-protection products made by BASF and Monsanto Co. in Australia.

Nufarm has also been hurt by persistently weak glyphosate prices, kept low by a flood of global supply and lax demand since 2008.

The closure of the plants, located in Western Australia and Queensland states, will be implemented over the next two years.Nufarm also said it was reviewing its manufacturing operations in New Zealand.

It will book a restructure charge of 39 million Australian dollars (US$35 million) related to the Australian plant closures. Facilities in Victoria state will be expanded to manufacture the products affected by the two closures, the company said.