30 March 2026
Grandpuits 26/03/2026. LAT Nitrogen has presented to its employee representatives and employees a project to terminate the production of fertilizers in its Grandpuits factory. This announcement follows the realization of significant losses at the site and aggravated by its structural deficiencies. This announcement follows the finding that the sector of activity lacks competitiveness in France, a situation exacerbated by the site’s structural shortcomings.
The company is aware of the impact of this announcement on the site’s workforce and is committed to provide personalised support for each of the employees affected by this decision. During the information consultation process the management will present the detailed project including supporting measures for affected employees.
The ammonium nitrates (AN) segment is facing structural difficulties with no prospects of improvement
Europe's nitrogen fertilizer sector is experiencing a significant contraction with intense margin pressure, whilst significant investments will be required to face a changing market.
Demand for nitrogen fertilizers in Europe has fallen by around 20% between 2019 and 2024, driven by EU policies aimed at reducing nitrogen and a shift towards organic alternatives.
European producers face mounting challenges from high energy and environmental costs, exacerbated by geopolitical events, making them uncompetitive against imports from outside EU. This has led to plant shutdowns and a shrinking industrial base, necessitating a structural adaptation of the sector.
In France, total deliveries of nitrogen fertilizers fell by 18% between 2016 and 2025, and those of ammonium nitrate (AN) by 66% since 2008, against a backdrop of sustained stagnation in
demand linked to a decline in agricultural land, sustainable fertilization policies and rising gas and carbon prices.
The Grandpuits site is facing structural challenges and all initiatives undertaken to restore competitiveness have failed In a context where nitrogen fertilizer sales are plummeting, leading to severe industrial underutilization, the Grandpuits site faces the highest costs and least efficiency within the Group which impacts its competitiveness. Continuing to operate Grandpuits the company can no longer sustain.
Despite previous restructuring and the stop of ammonia production beginning of 2022 and its final shutdown early 2025, the site has failed to regain the desired profitability. Key conditions such as increased sales, consistent production, and competitive ammonia sourcing did not materialize. Efforts to optimize energy and reduce fixed costs proved insufficient, and a search for buyers was unsuccessful. The Grandpuits site will transition into a warehouse hub for the other French production sites, allowing production continuity at these sites to support customer deliveries. AdBlue® production on-site will also discontinue.
“The profound challenges facing the European fertilizer industry – from soaring energy costs driven by geopolitical events to unfair competition from imports not subject to carbon taxes – are not new, and France is unfortunately no exception," stated Leo Alders, CEO of LAT Nitrogen. "Our energy-intensive operations make us particularly vulnerable in this environment, where only the strongest can survive. While I understand the impact of the project which would involve closing the production activities at the site, I must also underline the urgency of implementing measures to safeguard our wider competitiveness and prevent even greater risk. I want to acknowledge the dedication of our employees and management who have worked tirelessly to turn things around. However, we must face the economic facts: we cannot save this site. In this difficult moment, I want to reaffirm our commitment to providing the best possible support for every employee impacted." Leo Alders concludes.