Tuesday, December 3, 2013

Another difficult day for the Potash Industry in Canada

Close followers of the financial news will know that today has been another tough day in the Potash industry, with more bad news delivered by the Saskatoon based Potash Corporation.

Saskatchewan's most famous exporter of Potash, outlined the scope of a number of decisions that were made today, designed to retrench the corporation for the present, with an eye for the future. All of it as the Company faces a challenging world market for their product.

Among the changes announced today are the closure of a number of potash facilities in North America and the downsizing of the workforce at others,  which will make for an 18 percent reduction when all is complete. Cuts and closures that are reflective of the current troubles that have hit the industry in the last year.

And while the Potash Corporation still believes the future will be bright, for the over 1,000 workers losing their jobs across the continent and the communities that they live in, the future probably seems a very, very far off place at the  moment and for most, one that they won't be participating in.

The update on the challenges of the Potash Industry were outlined in a media release from Potash Corporation, a multi-media presentation which also featured a five and half minute video review of the current situation from William J. Doyle, President and CEO of the Potash Corporation.


Developments in Saskatchewan are of a fair amount of interest to Prince Rupert  And the news of today, will probably send a cold wind through the halls of Prince Rupert City Hall.

Another indication that the long sought after Potash Terminal for Ridley Island, is now probably even further down the list of prospective projects for the Potash giants larger planning.

Earlier this year, Council discussed the need for an update of sorts from the Saskatchewan company, suggesting that they return to the community to provide an outline of their Terminal plans for the community.

The Mayor and Council never did advise if they had heard back from the proponents of the Terminal. But the overview delivered this morning, might serve to provide City Council with that larger picture look at the state of the Potash industry they were seeking.

While Prince Rupert is not suffering the same consequences of those communities that lost jobs today, the financial indicators would suggest that the region will feel the impact of the news out of Saskatchewan today in a different way.

Between the lines, today's announcement seems to suggest that any plans for the Ridley Island Terminal may be a fair way down the road.

You can review our past items of note on the Proposed Canpotex terminal from our archive page.

Further background on today's major development in Canada's potash sector can be found below:

Saskatoon Star Phoenix-- Potash Corp cuts 1,045 jobs, including more than 400 in Saskatchewan
Regina Leader Post-- "This is not good news" says Premier Brad Wall as Postash Corp, to cut 440 jobs in Saskatchewan
CBC-- Potash Corp to cut hundreds of jobs
Global News-- Potash Corp slashes hundreds of jobs; biggest hits in Saskatchewan, NB, Florida
Financial Post-- Potash Corp slashes 18% of its workforce because of weak demand
Globe and Mail-- Potash Corp. slashes jobs; 'We can compete' CEO says
CNW newswire-- Postash Corp Announces Operating and Workforce Changes
Vancouver Sun-- Potash Corp. to cut more than 1,000 jobs

No comments:

Post a Comment