Global considerations

by anthonyhemm


As I wrote about the seeming power 1 person can exert over the fortunes of a business in my last post, I will look to do the same this time, just in a completely different circumstance. Agricultural and chemical companies find their markets growing as the industry always seems to be developing. And right now with the increase we see in the industrial level of food production, it isn’t surprising when billions of dollars are being spoken about to build such factories. Incitec Pivot are already an established name in Australia, with new gas contracts for their Phosphate Hill plant in Queensland costing $50 million. In this world of energy, mining and chemicals, companies can operate in all sectors, and this is in fact one of the reasons why they have pulled the plug on their Australian ammonia plant. The booming shale gas revolution in America has led to cheap energy and a rebirth of the chemical manufacturing industry, part of the reason why it would cost $1.4 billion to build such a plant in Australia compared to $1billion in the US. It is worth remembering the scale of such worldwide micro-economies, as the shifts in balance have a knock on effect everywhere, often undermining anything governments and communities can do.