Mexico to Curb Fertilizer Imports with Increased Domestic Production

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Mexico is adding substantial nitrogenous fertilizer production capacity through various grassroot and brownfield construction projects throughout the country.

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Capacity Pinch

Fertilizers, those organic and chemical products that are used to feed the world, have been the subject of shortages and prices spikes since conflict erupted in the Middle East earlier this year, leading to offline petrochemical capacity and shipping tie-ups. Millions of tons of potential Middle East urea exports have been suspended, and much natural gas production and processing, key to nitrogenous fertilizer production, has been knocked offline.

While prices have subsequently come down, the conflict and shortage of supplies brought a sharp spike in prices, with urea more than doubling in price from January to late March and early April this year.

Renewed Goals

The chokehold on fertilizers and their increased costs during prime planting time for much of the northern hemisphere has led to governments and industry players feeling the need to shore up domestic production as a cushion against future trade disruptions and supply shortages. Mexico is definitely one of these countries. Having already broken ground on some major fertilizer capacity before the Middle East conflict escalated, the country is now ramping up plans for new nitrogenous fertilizer construction sooner rather than later.

Industrial Info Resources data show more than US$5 billion worth of nitrogenous fertilizer-related construction underway or planned for the future in Mexico.

Future Capacity Additions

Anhydrous ammonia can be used directly in fertilizer applications, but ammonia's downstream product urea (ammonia and carbon dioxide) represents fertilizer in a more stable, crystalline form that is easily transported. Mexico has construction underway targeting both ammonia and urea.

One of Mexico's most important fertilizer projects has been underway since before the Middle East conflict escalated this year, breaking ground in 2024. Gas y Petroquimica de Occidente SA de CV, a subsidiary of Switzerland's Proman, is aiming to set up one of Latin America's largest agrochemicals complexes in Topolobampo, Sinaloa state. A grassroot ammonia plant and its accompanying utilities are the first components of the project that will be completed, ramping up to annual production of 800,000 metric tons of ammonia when completed. A July report from Mexico Business News states that the plant is approximately 80% complete and on track to start production in late 2027. Mexico's CFEnergia will be supplying natural gas to the plant, which could substantially reduce Mexico's ammonia imports. But that's not all in store for the complex. Further plans call for downstream units to produce urea as well as methanol and melamine, although this second phase of construction remains some years off.

Mexico's state-run Pemex also is getting in on the action with the addition of an ammonia and urea plant on a brownfield site in Poza Rica, Veracruz, that will produce more than 700,000 tons of granulated urea annually when completed in 2028. According to Pemex, the company boosted its fertilizer production 21% from 2024 to 2025.

TriFertiTam SA de CV is adding ammonia and urea units in Tamaulipas state, while preliminary work also is underway at Fermachem's fertilizer complex in Lerdo, Durango, which is expected to begin production of urea, ammonia and downstream fertilizer products in 2029.

Projects at Existing Plants

While the results of Mexico's current nitrogenous fertilizer construction will far outstrip the country's existing capacity, Mexico does, in fact, have an existing fertilizer sector abounding with plans for smaller projects, generally aimed at efficiency or environmental upgrades. Kimek Cosmocel SA de CV, for example, will introduce some automation upgrades at its plant in Nuevo Leon to boost production efficiency this year while a Pemex subsidiary is replacing the heat exchangers at another Veracruz fertilizer plant. Industrial Info Resources also is tracking details on more than a dozen planned maintenance projects at fertilizer plants throughout Mexico.

Key Takeaways

• Mexico is expanding its nitrogenous fertilizer production capacity in a big way through some very large construction projects.
• According to various agencies and news outlets, Mexico imports around 70%-75% of the fertilizer it consumes, much from the Persian Gulf.
• Industrial Info Resources is tracking more than US$5 billion of nitrogenous fertilizer-related construction projects currently underway or planned for the future in Mexico.

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About Industrial Info Resources
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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).