Mexico: Agrochemical Plant to be Reactivated in Chihuahua

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Soluciones Quimicas para el Campo y la Industria (SQCI) (Minatitlán, Veracruz) plans to resume operations at its Camargo plant in Chihuahua State, as a result of Pemex Petroquímica's (Distrito Federal, México) project to reactivate its facility in the same city. The plant, operated by the state-owned company, is expected to begin operations by mid-2014, after 10 years of sitting idle, and will provide SQCI with the necessary raw material for its operation.

The SQCI plant includes a urea unit with a 50,000-metric-ton-per-year production capacity, fed by the ammonia produced by the Pemex plant. After the ammonia plant ceased operations in 2002, SQCI and other plants from the regional agrochemical sector, which depended on the supply from the state company, saw operations affected and halted production. Pemex's ammonia plant reactivation has allowed SQCI authorities to approve the necessary $8 million investment to perform upgrades to the urea plant and restart activities in May 2014. SQCI is evaluating future investments to continue upgrades and expansions when the plant is operational.

This type of project will help to develop the agrochemical and fertilizer industries in the region, benefiting Chihuahua State and positioning it as a leader in the sector. It also will help to lower prices of these products. In a joint effort, the governments of Chihuahua and Camargo have agreed to reactivate the project and construct an aqueduct that feeds the ammonia plant, thus incentivizing the consumption of agrochemicals used in the agriculture sector.

For more information, see May, 8, 2013, article - Pemex Plans to Restart Agrochemicals Plant in Camargo.

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