Fermachem and GPO to invest more than $3 B to boost fertilizer production in Mexico
Private developers Fermachem and Gas y Petroquímica de Occidente (GPO) are investing > $3.2 billion in two fertilizer projects that aim to strengthen Mexico’s domestic production of ammonia and urea, reducing reliance on imports and improving food security:
- Fermachem: Fermachem has begun construction of its $1.6 billion Agro-Nitrogen Industrial Complex in Lerdo, Durango. Scheduled to start operations in 2029, the plant will produce 1 MMtpy of granulated urea, replacing an estimated 58% of Mexico’s urea imports. The facility will use Texas-sourced natural gas, self-generated power, and carbon capture technology. Construction is expected to create 3,000 jobs, with 450 permanent positions once operational.
- GPO: GPO, a subsidiary of Switzerland’s Proman, is developing a $1.63 billion anhydrous ammonia plant in Topolobampo, Sinaloa. The project is about 80% complete and is expected to begin production in 2027, with annual capacity of approximately 800,000 metric tons. The plant is projected to reduce Mexico’s ammonia import dependence by 70%, create up to 10,000 direct and indirect jobs, and become Latin America’s largest merchant ammonia facility.
The investments come as Mexico imports roughly 75% of its fertilizer needs, leaving farmers vulnerable to geopolitical disruptions and rising global prices. Urea prices have surged significantly amid international tensions, prompting industry calls for greater domestic production and temporary tariff relief on imported fertilizers.
The federal government is also supporting fertilizer self-sufficiency through a MX$93 billion petrochemical reactivation program, including a MX$25 billion ammonia and urea plant in Poza Rica, Veracruz, designed to produce 708,000 metric tons of granulated urea annually. Together, public and private investments are expected to improve supply security and reduce import dependence.
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