Agrochemicals Drive Investments in Latin America

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November 27, 2024--Researched by Industrial Info Resources (Sugar Land, Texas)--In Latin America, the agrochemical drives a lot of investment. Similarly to what is happening in Brazil, the region's leader, as reported by Industrial Info in September 2023 article - Brazil's Fertilizer Sector Sees Expansion, the markets of Argentina, Mexico, Chile, Colombia, Paraguay, and Uruguay are no strangers to this phenomenon. The sector is experiencing significant expansion.

Factors such as the impact of the Russia-Ukraine war and the need to support agriculture to generate more economic gains and food have driven investments, which, according to IIR, amount to around US$7 billion distributed across 135 projects. Chile leads this trend with more than US$2 billion, with a particular focus on building green ammonia plants. The region shows a particular interest in constructing new plants and production units, accounting for nearly 60% of the total investment. However, a significant percentage is allocated to modernizing existing facilities, a trend that is transversal to all industries in the region. By 2025, capital approval is expected for an additional 62 projects, with Chile leading the way, followed by Mexico and Argentina.

One of the region's largest fertilizer projects comes from Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil), which has restarted construction of a 3,600-ton-per-day grassroot urea plant in Tres Lagos, Brazil, that was halted in 2014. The new plant now is expected to begin production in 2028. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).