CSBP’s Kwinana facility will continue to be a major importer and distributor of fertiliser, including imported superphosphate. Photo: CSBP

A LONG-TERM term decline in market demand for single superphosphate (SSP) as growers continue to reduce sheep numbers, combined with declining terms of trade for local production, has prompted CSBP Fertilisers to announce it will mothball its superphosphate plant at Kwinana.

SSP is used primarily as a fertiliser for pastures for livestock, with its balance of sulphur and phosphorus helping to redress nutrient poor soils.

The plant is believed to have a production capacity of 90,000-100,000t per annum, and is WA’s only producer of SSP.

CSBP Fertilisers general manager Ryan Lamp said choosing the care-and-maintenance option gave the business the flexibility to recommence operations in the future, if market conditions change.

“We will continue to support Western Australian growers by importing SSP, and repurposing the facility to increase CSBP’s storage capacity will enable us to offer greater supply reliability across our solid fertiliser products,” Mr Lamp said.

“Fertilisers such as Flexi-N will still be manufactured at our Kwinana, Esperance, and Geraldton facilities, as well as cropping fertilisers in our Kwinana granulation plant.”

Mr Lamp said the cost of raw material inputs to domestic SSP production had increased significantly as a result of production curtailments in the WA nickel industry.

“Until recently, sulfuric acid, which is a critical input to the SSP production process, was supplied to the Western Australian market as a by-product of the nickel-refining process.

“The additional cost of securing imported acid has adversely affected the plant’s production costs, while market demand for SSP has declined.”

CSBP will transition the plant to care and maintenance over coming months.

CSBP has its origins in the WA company Cuming Smith, which established the first superphosphate manufacturing plant in Australia in Melbourne, and commenced similar operations in WA soon after.

In 1927, Cuming Smith formed a joint venture with superphosphate business Mount Lyell and Westralian Farmers Superphosphates Limited to form Cuming Smith & Mt Lyell Farmers Fertilisers Ltd, with BP taking over the other partners’ stake in 1963.

Source: CSBP