Chemical firm gets the right mix as profits soar

Apr 14 2009 by Chris Knox, The Journal

A CHEMICALS firm which last year axed 150 workers has turned its fortunes around and boosted profits by more than £80m as the cost-cutting paid off and demand for its goods soared.

Billingham-based GrowHow UK (East) is looking forward to further growth this year after a radical restructure and a 75% increase in the price of fertiliser for which it makes ingredients.

The business recovered from two years of falling sales to see revenues surge by 60% last year to £367m and earnings lift to £64m after seeing an £18m loss the previous year. GrowHow UK (East) changed its name from Terra Nitrogen and helped change its fortunes after entering into a joint venture with Cheshire-based rival firm GrowHow UK Limited in September, after both companies had been badly hit by rapidly increasing gas prices.

As well as suffering at the hands of volatile commodity prices, both companies had also been impacted by poor weather between 2005 and 2007 as well as an outbreak of foot-and-mouth, which resulted in demand from their core farming markets nose-diving.

And the Teesside company made the decision to close its Bristol plant as well as its Stockton administrative offices, with the loss of 150 staff.