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In An Unexpected Decision, Yara Announces The Suspension Of Phosphate Fertilizer Production, Resulting In The Dismissal Of Hundreds Of Employees. The Company Claims Focus On Sustainable Operations, But The Measure Generates Concern Among Workers And Local Authorities Seeking Alternatives
In an unexpected turn of events that shook the industrial sector in São Paulo, the Norwegian multinational Yara announced the gradual suspension of phosphate and sulfuric acid production at its facilities in Cubatão and Paulínia.
The measure, which is expected to be completed by the third quarter of 2025, will result in the dismissal of hundreds of employees, generating concern and uncertainty in the region.
Suspension Of Activities And Dismissals
Yara reported that the “hibernation” of the phosphate and sulfuric acid plants is part of a strategy to focus on more sustainable operations centered on its core activity: the production of nitrogen fertilizers.
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In Cubatão, the suspension will affect units 3 and the phosphate plants of unit 2, while units 1 and 2, responsible for nitrogen production, along with the mixer (unit 5), will continue to operate normally.
The decision will result in the dismissal of approximately 219 employees at the Cubatão unit, along with a similar number of outsourced workers.
Financial Results And Restructuring At Yara
The decision comes after Yara reported a net loss of US$ 290 million in the fourth quarter of 2024, reversing a profit of US$ 246 million from the same period the previous year.
For the year as a whole, the company recorded revenues of US$ 13.934 billion, a decline of 10.83% compared to US$ 15.627 billion in 2023. In contrast, EBITDA increased by 20%, reaching US$ 2.051 billion.
In light of this scenario, Yara announced a cost reduction program and investments of US$ 150 million, aiming to optimize its operations and focus on strategic areas to ensure long-term sustainability.
Local Repercussions And Mitigation Measures
The news has generated concern among employees and local authorities.
The Union of Chemists of Baixada Santista stated that although additional benefit packages beyond legal rights have been negotiated, this “will never be enough for those who lose their jobs in which they have dedicated so many years.”
The City Hall of Cubatão held a meeting with representatives of Yara to understand the measures being adopted and to seek alternatives to mitigate the effects of the layoffs on the local job market.
One of the initiatives includes a meeting between Mayor César Nascimento and the Vice President and Minister of Development, Industry, Commerce, and Services, Geraldo Alckmin, in Brasília, to discuss possible solutions to strengthen the industrial sector in the region.
Future Perspectives And Investments
Despite the adversities, Yara highlighted the start of renewable ammonia production in Cubatão, in December 2024, reinforcing its commitment to sustainability and innovation.
The company stated that Cubatão remains strategic for its operations in Brazil, with nitrogen assets that represent a competitive advantage and growing potential for generating value for the national industry.
Yara also emphasized that the supply of fertilizers to the Brazilian market will not be affected by the suspension of activities at its phosphate units, ensuring it will continue to meet its customers with high-quality products.
Economic And Social Impact
The suspension of activities at the Cubatão and Paulínia units represents a significant impact not only for the employees directly affected but also for the local economy, which is deeply connected to the international market.
Mass layoffs may result in increased unemployment and reduced income in the region, affecting various sectors of the local economy.
Local authorities and unions are seeking alternatives to minimize the negative effects of this decision, including the relocation of dismissed workers and attracting new investments to the region.
The meeting with Minister Geraldo Alckmin is one of the initiatives in this regard, aiming to discuss measures that could strengthen the industrial sector and promote sustainable economic development in Cubatão and Paulínia.
For experts, Yara’s decision to suspend phosphate and sulfuric acid production in Cubatão and Paulínia reflects a strategic restructuring of the company, focused on more sustainable operations aligned with global trends in sustainability and innovation.
However, this measure brings significant challenges for the affected employees and the local economy, requiring coordinated actions among the company, authorities, and unions to mitigate the social and economic impacts resulting from this decision.
Colocar a culpa no governo pela má eficiência de uma empresa privada é ser no mínimo ignorante intelectual!
Má gestão é própria ignorância de própria Gestal empresarial!
Essa demissão em massa. E o resultado da incompetência do governo lula e seus ministros incompetentes ..
A empresa está se adequando a agenda global sobre sustentabilidade e boas práticas na produção agrícola. Agenda essa que nunca se preocupou nos índices de desemprego para a realização desta.