Eurochem’s Heringer Fertilizers shuts down 3 more factories after billion-Real loss

Heringer Fertilizers, owned by Eurochem, announced that it will shut down three more units in the Brazilian states of Goiás, Minas Gerais, and São Paulo. The company ended the fourth quarter of 2024 with a loss of R$658 million, having closed the previous year with a loss of R$1.154 billion (equivalent to approximately US$200 million).

According to the company, the shutdown will be implemented gradually, with a progressive reduction in operations over the next few months. In a statement released to AgroPages, the company reported that it has resumed operations at the port city of Paranaguá, in the Brazilian state of Paraná.

"The decision was made considering the best interest of the company, its shareholders, and other stakeholders, taking into account the historical low financial performance and low economic viability of the plants in question in the current market context, thus reducing the need for intensive Capex and other operational costs of the aforementioned units," Heringer stated.

According to them, other company plants will meet the volumes operated by the shut-down units. Fausto Goveia, Financial Director of Fertilizantes Heringer, stated that this aims to "provide logistical gains and optimize fixed costs and profitability of the other plants, including the resumption of operations at the Paranaguá unit, which is still in its initial phase, focusing only on straights (simple elements)".

The company stated that it continues to evaluate the destination of the plants, conducting a study on alternatives to maximize returns, including the possibility of future reactivation "if there are changes in market conditions or through the sale of the asset through a competitive process."

In October last year, Heringer had announced that the factories in the cities of Dourados, in the Brazilian state of Mato Grosso do Sul, and Rosário do Catete, in the state of Sergipe, would be shut down. Since 2020, the company has also kept the unit in Porto Alegre, Rio Grande do Sul, closed. The company has also been facing challenges related to its debt. It has undergone negotiation processes with creditors, in addition to making adjustments to meet the requirements of the Securities and Exchange Commission (CVM).

The company also announced the resignation of Fábio Cânfora from the position of Commercial Director, to which he was elected in November 2023, and Augusto Cesar Gomes de Oliveira, who resigned as Operations Director, having been elected in August 2023. Due to the resignations, the Board of Directors of Fertilizantes Heringer has temporarily appointed Anton Slavnov to the position of Commercial Director and Maicon Luiz Cossa to the position of Operations Director.

(Editing by Leonardo Gottems, reporter for AgroPages)