Brazil's Unigel restarts fertilizer plant to boost domestic supply
(Reuters) - Unigel, the largest Brazilian manufacturer of nitrogen fertilizers, on Thursday announced the resumption of activities at a unit called Unigel Agro Sergipe, which produces urea and ammonia.
The company said it scheduled the restart for September after a slight improvement in the outlook for the domestic petrochemical sector.
The factory in Sergipe state was idled due to challenging market conditions, Unigel said. Another plant in Bahia state that was likewise idled will remain offline.
Both are leased from state-run oil giant Petrobras .
"The chemical industry's outlook remains challenging, but we understand that it is time to resume activities gradually and responsibly," Unigel's CEO Roberto Santos said in a statement.
"We foresee an increase in urea demand through the end of the year due to the next winter harvest," he said.
When operating at full capacity, the Sergipe plant can produce 450,000 tons of ammonia and 650,000 tons of urea per year.
Unigel's decision is good news for the farm sector as it will reduce some of Brazil's heavy reliance on imported fertilizers. Santos said imports currently provide 85% of demand.
Information about restarting the Sergipe plant was first disclosed by Brazil's Valor Economico newspaper.
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