The closure of a manufacturing plant is a concern for Australian AdBlue supplies
The National Road Transport Association (NatRoad) is asking the federal government to provide an AdBlue update and explain what it will do to maintain its supply once manufacturing closes.
The call comes after the main AdBlue manufacturing plant is set to cease production later this year.
Manufacturers Incitec Pivot told its investors that it will go ahead with its plans to shut down the Gibson Island processing plant near Brisbane before the end of the year.
The Gibson Island plant currently produces around 80 per cent of national AdBlue requirements while the other 20 per cent comes from imports, as Incitec Pivot initially delayed the plant’s closure after receiving a $29.4 million grant from the federal government in December last year to stay open.
If there is to be another shortage of AdBlue, NatRoad says it could bring road freight to a standstill yet again after the supply chain was threatened by China cutting off its supply of AdBlue to Australia late last year.
After establishing a federal government AdBlue taskforce filled with industry leaders last year, NatRoad now wants the taskforce to continue looking at other manufacturing options and alternative international AdBlue sources.
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“It’s time for the government to tell us what’s happening and for the taskforce to end its radio silence,” NatRoad CEO Warren Clark says.
“NatRoad was a lone voice when the AdBlue shortage began, and we’ll keep pushing for a solution to the problem.”
According to Clark, the Department of Industry Science Energy and Resources had to bring in consultants to say how much AdBlue was in the supply chain and paid them $12,000 a day to find out.
“Now we hear that the Department of Industry is paying Boston Consulting Group $1.6 million to tell it how to solve the problem,” Clark says.
NatRoad is adamant it will continue striving for answers to ensure another AdBlue crisis isn’t incoming for Australian transport operators.