Peru Joins Ecuador in Seeking to Obtain National Fertilizers Production

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--CF Industries (NYSE:CF) (Deerfield, Illinois), the global leader in fertilizer manufacturing, aims to open a new urea and ammonia plant in San Juan de Marcona, Peru, through its local subsidiary, CF Industries Peru (Lima, Peru). The estimated investment for the building of the premises is $1 billion.

The construction of this major fertilizer complex involves the addition of the necessary natural gas offsite utilities, which is valued at an additional $100 million. The planning for this development started in early 2009, and the bid documents are to be released in the fourth quarter of 2012.

The new Marcona Fertilizers complex, which suffered delays back in 2011 due to external constraints (especially delays related to the lack of infrastructure to access the natural gas pipeline), will include a 2,300-metric-ton-per-day ammonia unit and a 3,850-metric-ton-per-day urea unit, with the necessary supporting equipment. During construction stage, all three projects combined might lead to the creation of 4,000 jobs at their height, and the plants will employ 250 people once they are operational.

The Peruvian Ministry of Energy and Mines has set a deadline for CF to define an outline of execution for this project, which expires in the second quarter of 2013. Company officials have stated that studies on the project's environmental impact have concluded, and they are awaiting the Ministry's approval to kick off the construction, which will last no less than two years.

These large projects involving fertilizers seem to be part of a trend in South American countries. Urea and ammonia plants in large scale are being planned in Ecuador as well, and these products are a novelty to the region. For more information, see May 11, 2012, article - Fertilizers Site Under Construction in Ecuador.

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