CF Industries’ carbon dioxide and fertiliser plant in Cheshire will close for good in a fresh blow to farmers already seeing the impacts of high inflation.
The US-based company has announced the plant's permanent closure, having been temporarily shut down since last September.
A sharp increase in gas prices had caused the Ince-based production plant to pause production.
Now the news of a permanent closure comes as fertiliser costs and supply continue to face unprecedented risks.
Industry groups have warned the development may put further upward pressure on food prices.
CF Industries said it will focus all of its UK manufacturing capabilities at its Billingham, Teesside factory. 283 jobs are at risk.
In a statement, the firm said: "As a high-cost producer in an intensely competitive global industry, we see considerable challenges to long-term sustainability from our current operational approach.
"We expect to begin collective redundancy consultation with union and other employee representatives shortly.
"We intend to provide our team with all possible support through what we recognise will be a very challenging time for them.”
Responding, Dr Neil Hudson, who sits on the Environment, Food and Rural Affairs Committee (EFRA), said the government should urgently intervene to protect food security.
The Cumbrian MP also called for action on the risk to fertiliser supply, to ensure that the rising costs and supply issues faced by farmers are not worsened by this development.
“Amid what is already a difficult time, given the existing threats to food security from the war in Ukraine and labour shortages in our food production sectors, this announcement is of extreme concern.
"Our farmers are going to need urgent support from the government to ensure sufficient carbon dioxide and fertiliser supply," he said.