Mexico's Fertilizer Push: US$3.2 Billion Invested in Domestic Production
Two major fertilizer manufacturing complexes in Mexico are being built by private developers Fermachem and Gas y Petroquímica de Occidente (GPO) with a combined investment of over US$3.2 billion.
The projects will establish domestic production capacity for granulated urea and ammonia, aiming to reduce Mexico's reliance on imported agricultural inputs and limit exposure to international price volatility.
Fermachem's Agro-Nitrogen Industrial Complex in Lerdo, Durango, is scheduled to begin commercial operations in 2029 and will produce 1 million metric tons of granulated urea annually, replacing an estimated 58% of Mexico's urea imports.
The complex will leverage pipeline infrastructure operated by sister company Esentia Energy Systems to secure competitively priced natural gas from Texas. Construction is expected to generate 3,000 direct and indirect jobs, followed by 450 permanent positions once operations begin.