IFFCO has upheld the decision of putting on hold the urea production plant project at Bécancour until the return of favourable economic conditions. It is a joint venture of La Coop fédérée and IFFCO.
In a terse massage received by Indian Cooperative from IFFCO MD Dr U S Awasthi said the decision is prudent. In MD‘s words “This is prudent decision.”
Earlier a press release read “In the name of IFFCO Canada shareholders, La Coop fédérée announces that the urea production plant project at Bécancour is being put on hold until favourable economic conditions prevail including an increase in urea pricing which is currently in a low pricing cycle worldwide.”
Urea prices are at their lowest level in five years and as a consequence, investors are being prudent. The promoters and investors believe that the world class project remains fundamentally viable, and that the support of the government of Québec and major institutional partners remains solid, the release adds.
The company however hastens to end that La Coop fédérée and IFFCO remain convinced that the project is soundly based. “We are halting the project; as a result of the current poor rates for urea that is blocking the promoters and investors from attaining the plant’s anticipated profitability. We are waiting for the cyclical low point in the price of urea to end, which we expect will allow resumption of the project.
In the interim, we continue to work on developing the project and preparing for its relaunch,” declared IFFCO Canada Director General, Claude Lafleur. “It should be remembered that this is one of the largest industrial projects in recent years in Québec. Important steps have already been taken since we resumed in June 2015”, added Claude Lafleur.