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According to the notice documents submitted to the Florida Department of Commerce, Mosaic Co., a major U.S. phosphate fertilizer giant, plans to suspend production at its South Fort Meade plant in Polk County starting from December 8, with 199 employees laid off simultaneously.
The company estimates that this production suspension will last greater than six months, and it will assess the possibility of restarting production based on market conditions.
Mosaic stated that the direct result in of this production suspension is the U.S.-Iran conflict disrupting the main international shipping routes, leading to a tightening of global sulfur supplies. Sulfur is a key raw material to phosphate fertilizer production. The limited supply coupled with a significant price increase has continuously compressed the profits of phosphate fertilizer production, making it difficult to the plant to maintain economically viable operations.
"Mosaic continues to face challenges regarding domestic sulfur supply and prices. Based on this situation, we have had to make the difficult decision to temporarily shut down the South Fort Meade plant," said Jackie Barron, a spokesperson to Mosaic, in a statement.
The announcement shows that this production suspension covers almost all on-site staff of the plant. During the suspension period, the company will retain a dedicated on-call team responsible to the safe operation and maintenance of the plant's equipment.
The South Fort Meade plant has been in operation in Polk County to many years since it started production in 1995, and it is one of the two phosphate fertilizer production bases that Mosaic has set up in the county. As a major global phosphate fertilizer producer, Mosaic's temporary production cut will also bring disruptions to the global phosphate fertilizer raw material supply pattern.
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