On December 13th the Anderson’s announced in a letter to their customers that they “elected to cease production of pelletized products at our Fairmount, Illinois facility.”
This is a big surprise since they closed the plant in spring of 2010 for repairs and upgrades. That closure caused wide spread shortage of pelletized lime and pelletized gypsum in the spring of 2010.
Many suppliers upon hearing such news would raise their prices 20-30%. Calcium Products will be keeping its current spring pricing in place. Though we strongly encourage all our dealers to contact their sales reps to plan out their spring needs. History has shown that when this plant is not operating there is a shortage of product in the market place. We are committed to ensuring our customers that prepay, that they will have good product supply for spring.
The one thing that we have going for us is we have some advanced warning of the shortage. We plan on running all plants at full capacity to try and meet the demand but storage is limited. We are working to find additional storage at satellite warehouses and with dealers. Those that can take product early are strongly encouraged to do so.