Recently, two Mexican private companies, Ferma Chemical and Western Gas & Petrochemical (GPO), announced combined investments of over US$3.2 billion in two major fertilizer projects to expand domestic production capacity of anhydrous ammonia and urea, reduce dependence on fertilizer imports, and ensure national food security.
Ferma Chemical invests US$1.6 billion to build an agricultural nitrogen industrial park in Lerdo, Durango, with planned production start in 2029 and annual output of 1 million tonnes of granular urea, which could replace 58% of Mexico’s urea imports. The plant uses natural gas from Texas as feedstock, equipped with its own power station and carbon capture technology. GPO, a subsidiary of Switzerland’s Proman Group, is investing US$1.63 billion in an anhydrous ammonia plant in Topolobampo, Sinaloa. The project is 80% complete and is scheduled to start production in 2027, with annual capacity of 800,000 tonnes of anhydrous ammonia, which could replace 70% of the country’s ammonia imports. It will create over 10,000 direct and indirect jobs and will become the largest commodity ammonia production base in Latin America after completion.
Currently, Mexico’s dependence on fertilizer imports is as high as 75%, making its agriculture vulnerable to geopolitical conflicts and international price fluctuations. After geopolitical turmoil pushed up urea prices, the industry called for boosting domestic production capacity and temporarily reducing fertilizer import tariffs. The federal government simultaneously launched a 93‑billion‑peso petrochemical revitalization plan to support the fertilizer industry, including a 25‑billion‑peso ammonia‑urea project in Poza Rica, Veracruz, with annual output of 708,000 tonnes of granular urea. The combined public and private capital investment will significantly enhance the stability of Mexico’s fertilizer supply and free it from import constraints
Post time: Aug-05-2026
