en.Wedoany.com Reported - Fermaca Dreams officially launched the construction of the Fermachem agricultural nitrogen fertilizer industrial complex in the city of Lerdo, Durango state, on June 8, with an investment of 28 billion Mexican pesos ($1.5 billion) and an expected annual production capacity of 1 million tons of fertilizer. On the same day, Mexico's state-owned oil company Petróleos Mexicanos (PEMEX) announced the launch of a petrochemical and fertilizer revitalization plan in Veracruz state, with an investment of 93 billion Mexican pesos. These two announcements mark the most concentrated investment commitments in domestic fertilizer production in Mexico in a generation, coinciding with the Sheinbaum administration's focus on food and energy sovereignty as the core of its industrial strategy.

The project will create over 3,000 jobs during construction and approximately 450 permanent positions after commissioning. Durango Governor Esteban Villegas Villarreal described the project as one of the most significant achievements of his tenure, calling it a "turning point for Durango."

According to Fermachem CEO Ray Fletcher, the plant will be one of the most modern production facilities in the Americas. He stated that Durango was chosen for its strategic location, competitive access to natural gas, and the atmosphere of confidence established for large-scale industrial development.

The complex will be equipped with self-generation and carbon capture systems to reduce environmental impact. The plant's natural gas supply has been secured through an agreement with Esentia Energy Systems, which operates the natural gas transportation infrastructure originally developed by Fermaca. The security of natural gas supply is the core logistical foundation of the project, as nitrogen fertilizer production is a natural gas-intensive industry. Durango's access to competitively priced natural gas through Esentia's pipeline network supports the project's economic viability.

According to data from the National Chemical Industry Association, Mexico imported 1.7 million tons of urea in 2024. Fermachem's annual production is expected to account for 58% of these imports, structurally reducing Mexico's current reliance on imports for over 80% of its urea consumption.

The project pledges over 200 million Mexican pesos in social investment for community welfare initiatives in Lerdo and Durango. Fermaca Dreams Co-President Fernando Calvillo Álvarez listed food sovereignty alongside job creation and regional development as the project's primary objectives.

The Fermachem plant represents a significant strategic evolution for Grupo Fermaca. The company initially started as a natural gas infrastructure developer, best known as the original developer of the pipeline network connecting northern Mexico with U.S. natural gas supplies. This network, after being sold to KKR-backed infrastructure investors, is now operated by Esentia Energy Systems.

Fermaca Dreams Co-Presidents Fernando Calvillo and Manuel Calvillo Álvarez, in coordination with the Durango state government and the federal government, advanced the project through years of negotiations and site selection. They leveraged their originally built natural gas infrastructure as the supply backbone for the fertilizer manufacturing complex, a vertically integrated industrial logic that transforms natural gas access into agrochemicals—a value-added sector with domestic demand that Mexico has historically outsourced.

Less than 24 hours after Fermachem's groundbreaking, PEMEX General Director Juan Carlos Carpio and Energy Minister Luz Elena González unveiled the comprehensive petrochemical and fertilizer industry revitalization plan at the CMP in Veracruz state, with an investment of 93 billion Mexican pesos. The flagship project of this plan is an ammonia and urea plant in Poza Rica, with an investment of 25 billion Mexican pesos, targeting an annual production of 708,000 tons of granular urea.

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