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."
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
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