CF Industries

Last updated

CF Industries Holdings, Inc.
Company type Public company
IndustryChemicals
Founded1946;78 years ago (1946)
Headquarters
Area served
North America
Key people
Tony Will (CEO)
Products Fertilizer
RevenueDecrease2.svg US$4.124 billion (2020) [1]
Decrease2.svg US$598.0 million (2020) [1]
Decrease2.svg US$317.0 million (2020) [1]
Total assets Increase2.svg US$12.172 billion (2020) [1]
Total equity Decrease2.svg US$2.897 billion (2020) [1]
Number of employees
3,016 [2]  (2020)
Website www.cfindustries.com

CF Industries Holdings, Inc. is an American manufacturer and distributor of agricultural fertilizers, including ammonia, urea, and ammonium nitrate products, based in Deerfield, Illinois, a suburb of Chicago. [3] It was founded in 1946 as the Central Farmers Fertilizer Company. For its first 56 years, it was a federation of regional agricultural supply cooperatives. CF then demutualized, and became a publicly traded company.

Contents

Operations

CF Industries operates nine manufacturing complexes worldwide comprising 17 ammonia plants, the largest of which is in Donaldsonville, Louisiana. [4] The primary operating subsidiary is CF Industries, Inc.

History

The company was founded in 1946 as the Central Farmers Fertilizer Company, a federation of regional agricultural supply cooperatives. [5] The company became CF Industries in 1971. [4]

CF demutualized in 2002 and made an initial public offering of shares of equity stock in 2005. [5] Since 2008, the shares of CF Industries have been included in the S&P 500 index of large-cap stock prices. [6]

In April 2010, CF Industries acquired Terra Industries, Inc., following protracted negotiations that included an attempt by rival fertilizer manufacturer Agrium to purchase CF and efforts by Yara International to purchase Terra. [7] acquiring five production complexes in North America, a 50% interest in a joint venture in Point Lisas, Trinidad, and a 50% interest in the GrowHow joint venture in the United Kingdom. [4]

In 2013, Mosaic Company agreed to buy CF Industries' phosphate business for $1.4 billion in cash. [8]

On July 1, 2015, CF Industries announced an agreement to acquire remaining 50% interest in GrowHow from Yara International for $580 million. [9]

On August 6, 2015, CF Industries announced that it will combine with OCI N.V.'s European, North American and Global Distribution businesses for $8 billion. The combined company will be domiciled in the UK and it will use the CF Industries name. [10] On May 31, 2016, CF Industries announced the termination of the proposed combination with the European, North American and Global Distribution businesses of OCI. [11]

On September 15, 2021, CF Industries announced that it was halting operations at its two UK production complexes due to high natural gas prices. [12] The halt in operations created a potential for a shortage in the UK of food grade CO2; a byproduct of ammonia production that is critical to sectors from beer and soft drinks to food packaging and meat. CF Industries' UK facilities had been the source of 60% of the country's food grade CO2. [13] On September 21, the UK government announced a short-term arrangement whereby the government would provide limited financial support to CF Industries for three weeks in order to support the immediate restart of operations and CO2 production at its Billingham, Teesside, plant. [14] In June 2022, CF Industries permanently shut their fertiliser factory in Ince, Cheshire, due to continuing high gas prices and environmental taxes. [15]

Related Research Articles

<span class="mw-page-title-main">Fertilizer</span> Substance added to soils to supply plant nutrients for a better growth

A fertilizer or fertiliser is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from liming materials or other non-nutrient soil amendments. Many sources of fertilizer exist, both natural and industrially produced. For most modern agricultural practices, fertilization focuses on three main macro nutrients: nitrogen (N), phosphorus (P), and potassium (K) with occasional addition of supplements like rock flour for micronutrients. Farmers apply these fertilizers in a variety of ways: through dry or pelletized or liquid application processes, using large agricultural equipment or hand-tool methods.

Demutualization is the process by which a customer-owned mutual organization (mutual) or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, members of a mutual usually receive a "windfall" payout, in the form of shares in the successor company, a cash payment, or a mixture of both. Mutualization or mutualisation is the opposite process, wherein a shareholder-owned company is converted into a mutual organization, typically through takeover by an existing mutual organization. Furthermore, re-mutualization depicts the process of aligning or refreshing the interest and objectives of the members of the mutual society.

<span class="mw-page-title-main">Yara International</span> Norwegian chemical company

Yara International ASA is a Norwegian chemical company. It produces, distributes, and sells nitrogen-based mineral fertilizers and related industrial products. Its product line also includes phosphate and potash-based mineral fertilizers, as well as complex and specialty mineral fertilizer products.

<span class="mw-page-title-main">Diammonium phosphate</span> Chemical compound

Diammonium phosphate (DAP; IUPAC name diammonium hydrogen phosphate; chemical formula (NH4)2(HPO4) is one of a series of water-soluble ammonium phosphate salts that can be produced when ammonia reacts with phosphoric acid.

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Farmland Industries was the largest agricultural cooperative in North America when it eventually sold all of its assets in 2002–04. During its 74-year history, Farmland served its farmer membership as a diversified, integrated organization, playing a significant role in agricultural markets both domestically and worldwide.

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Indian Farmers Fertiliser Cooperative Limited, also known as IFFCO, is a multi-state cooperative society. IFFCO is wholly owned by Cooperative Societies of India. The society is engaged in the business of manufacturing and marketing of fertilizers. IFFCO is headquartered in New Delhi, India. Started in 1967 with 57 member cooperatives, it is today the biggest co-op in the world by turnover on GDP per capita, with around 35,000 member cooperatives reaching over 50 million Indian farmers.

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<span class="mw-page-title-main">Nutrien</span> Canadian fertilizer company

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References

  1. 1 2 3 4 5 "CF Income Statement | Balance Sheet | Cash Flow | CF Industries Holdings, Inc. Co Stock - Yahoo Finance". Archived from the original on March 16, 2017. Retrieved March 15, 2017.
  2. "CF 2020 Sustainability Report Data Supplement 5.18.21" (PDF). CF Industries.
  3. "CF Industries Inc - Company Profile and News". Bloomberg.com. Retrieved July 4, 2022.
  4. 1 2 3 "CF Industries 2020 Annual Report" (PDF). Archived (PDF) from the original on April 12, 2021.
  5. 1 2 "Corporate Profile – CF Industries' History". CF Industries. Archived from the original on October 9, 2007. Retrieved September 12, 2008.
  6. "CF - CF Industries Replaces EDS - Electronics Data Systems In S&P 500 Index". S&P 500 Stocks. RiSh, LLC. August 27, 2008. Retrieved April 6, 2015.
  7. "Terra Finally Accepts CF Industries' Takeover Bid". March 12, 2010. Archived from the original on February 5, 2012.
  8. "Mosaic Co. to spend about $1.4 billion on purchase of CF Industries phosphate business" Associated Press (Minneapolis Star Tribune) October 28, 2013.
  9. Streetinsider, July 1, 2015
  10. "CF Industries and OCI to Create Global Nitrogen Leader". businesswire.com. August 6, 2015. Retrieved August 10, 2015.
  11. "Termination of Proposed Combination of CF Industries with OCI's European, North American and Global Distribution Businesses". CF Industries. May 23, 2016.
  12. "CF Industries Holdings, Inc. Announces Halt of Operations at UK Facilities". Archived from the original on September 16, 2021.
  13. "Fuel, fertiliser and food: how a UK ammonia plant threatened nation with crisis". Financial Times.
  14. "Government secures agreement to ensure CO2 supplies". Archived from the original on September 22, 2021.
  15. Cahill, Helen; Wallace, Tim (June 8, 2022). "UK food supply 'vulnerable' after fertiliser factory closes permanently" . The Daily Telegraph. Retrieved June 8, 2022.