Brazil: Expansion in Latin America Eurochem Commences Production at New Fertilizer Plant
Eurochem announced the opening of a third new fertilizer blending plant in Brazil. With the new 27,000 m2 facility at Araguari in Minas Gerais, the company is continuing the expansion of its subsidiary Fertilizantes Tocantins (FTO) in the country.
Zug/Switzerland — Eurochem's new plant in Brazil will produce up to 6,000 tonnes (KMT) of fertilizer a day, with a storage capacity of 100 KMT, creating 200 new direct and indirect jobs. The company's Chief Executive Petter Ostbo described Brazil as an important growth market for his company. The new plant at Araguari marked the latest stage of the manufacturers expansion in Latin America.
The Araguari site also has a direct rail connection from the Atlantic seaport of Vitoria, about 520 km north-east of Rio de Janeiro, facilitating deliveries to local customers of specialty fertilizers produced by Eurochem in Europe, meeting the specific needs of Brazilian farmers. These include Nitrophoska, CAN, and NPS.
FTO sold more than 1.8 MMT of fertilizers in 2018, making it one of the biggest fertilizer providers in Brazil. In addition to Araguari, Catalão and Sinop, FTO has six other plants located in Porto Nacional, São Luis, Querência, Rondonópolis, Barcarena, and Anápolis, with a corporate office in Goiânia, employing 600 people.
In 2016, the Group acquired a controlling interest (50 %+1 share) in FTO as part of its strategy to strengthen its presence in the fast-growing Latin American fertilizer market. The Swiss group also owns Emerger Fertilizantes, a distributor of premium and standard fertilizers in Argentina which it acquired in 2017.