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Fermachem Begins Tests on 20 Billion‑Peso Fertilizer Plant in Durango

The company says the project aims to boost Mexico’s domestic urea supply and support local jobs by pairing foreign licensors, a gas contract and on‑site energy and water systems.

Overview

  • Fermachem announced the start of execution and testing of its Lerdo, Durango plant on Tuesday, signaling the move from planning to on‑site work.
  • The privately financed project totals more than 20,000 million pesos with financing that the company says will mix debt and equity to fund construction through 2029.
  • The facility is designed to produce about one million tonnes of nitrogen fertilizer a year, is scheduled to begin operations in 2029, and will use natural gas as its chemical feedstock supplied under a contract with Esentia Energy Systems.
  • Fermachem named KBR and Stamicarbon as technology partners and says the plant will use treated water, generate its own electricity and include integrated CO2 capture in its process design.
  • Company officials say the build will create roughly 3,000 construction jobs and about 260 permanent positions, include a social contribution of more than 200 million pesos, and could replace roughly one third of Mexico’s current urea imports if it meets its planned output.