A group trying to take over one of Britain’s last remaining fertilizer plants will turn to Boris Johnson this week for support after ministers refused to back a bailout bid.
A group of UK investors backed by former army chief Lord Dannatt has been in talks with US giant CF Industries to buy the Ince plant in Cheshire for the past six months. It is seeking assurances from the government to help make the deal go smoothly, but so far has been unsuccessful.
The Ince plant is one of only two fertilizer plants in the UK and is a key supplier of carbon dioxide, a by-product of fertilizer production, to the industry. CO2 is used in everything from surgical operations to meat processing.
Last month, CF Industries announced plans to close the Innes plant in August, leaving the consortium, called UK Nitrogen, just weeks to secure a deal. The group plans to contact the Prime Minister through an intermediary this week to lobby directly for support.
A UK Nitrogen spokesman said: “We are asking about some of the environmental and gas issues with the plant. You will need to act on them quickly, given the deadlines.
“We’re not asking for any taxpayer money at all, we just need help easing some environmental hurdles.” Also, it would be non-participatory without the people.
“These facilities are hugely important and we think they should be UK-run and UK-owned.”
A permanent shutdown of Ince could weaken the UK’s food supply chain and put key CO2 supplies at risk.
The National Farmers’ Union, the Confederation of Agricultural Industries and the British Meat Processors Association warned that the closure of the Innes plant could leave the farming industry too dependent on a single fertilizer factory in Billingham, Teesside, for domestic supplies.
The UK Nitrogen consortium is understood to have first entered into early-stage discussions about an acquisition in January, but has so far been rebuffed by the company.
The consortium has asked the government to provide gas supply guarantees for the facility, as well as help with carbon taxes, which could help unlock negotiations.
The Government provided a multi-million pound grant to CF Industries to keep the Billingham factory open in September due to concerns about a lack of carbon dioxide supplies.
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