Ravensdown is in talks to sell its fertiliser operations in Western Australia as it faces a loss in the state for the fourth year in a row.
It says the discussions are commercially sensitive and could take some months but all customer orders and deliveries in the state will take place as normal.
The company says the difficult market conditions in Western Australia have led to a trading loss of around $A9 million, after three previous years of smaller losses.
It said the business made a loss despite putting plans in place to turn the business around.
Ravensdown said the sale will strengthen the balance sheet, reduce risk and debt, and enable capital to be reinvested.