Incitec Pivot says it needs the support of governments and gas companies to ensure the survival of its Gibson Island fertiliser plant.
Incitec's first-half profit has dropped almost 80 per cent after the explosives and fertiliser maker took a $105.6 million writedown on the value of Queensland plant, which employees 200 people.
Chief executive James Fazzino said the impairment against its Queensland plant was a reflection of the challenges facing energy-intensive trade-exposed manufacturing in Australia.
"We need to lower Gibson Island's non-gas costs so we are globally competitive by the end of 2016," Mr Fazzino said in a statement.
"We need broad support comprising our people, our customers, our farmers, our contractors and suppliers - including the gas companies - and governments, to pull together on what we call the Mission to Save Gibson Island."
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Mr Fazzino said Incitec had already made sure of reduced gas costs at its Phosphate Hill fertiliser plant by approximately $20 million a year from 2017, and a further $35 million per year from 2019.
Net profit for the six months to March 31 declined 78.2 per cent to $31.5 million after total writedowns, clean-up costs and environmental provisions rose to $154.5 million from $4.0 million for the prior corresponding period.
The company has already said the derailment two days after Christmas of a Queensland freight train carrying a shipment of sulphuric acid for use at Phosphate Hill would result in a $14 million hit to full-year profit.
INCITEC'S FIRST HALF
* Revenue down 4.4pct to $1.524b
* Net profit down 78.2pct to $31.5m
* Interim dividend down 0.3 cents to 4.1 cents, fully franked
