Agrium Inc. said Friday that it may have to write off its $280 million investment in its EAgrium plant as a result of a vote by the Egyptian parliament to recommend moving the plant.
The Canadian fertilizer company said it still believes that the movement of the $1.2 billion nitrogen products plant, which is currently under construction, is not a viable option because it would require new financing, permitting and the negotiation of new contracts.
Agrium said it will pursue the full recovery of its costs, equity contribution and future lost profits. If it must write off the $280 million investment, the company said it will do so in the second quarter.
Egypt's prime minister has offered to resolve the matter through either a buyout of Agrium's investment in the project or the transfer to Agrium of an interest in a government-owned nitrogen plant to be built next to the EAgrium site.
Agrium shares fell 96 cents to $107.46 in morning trading.
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