EuroChem expands further in Brazil 30th May 2018
EuroChem Group, a leading global fertilizer company, announces the opening of a new blending plant in Brazil as part of the continued expansion of Fertilizantes Tocantins (“FTO”).
EuroChem acquired a controlling interest (50%+1 share) in FTO in 2016 as part of its strategy to strengthen its presence in the fast-growing Latin American fertilizer market.
The new blending plant, FTO’s fifth to date, is located in Sinop in the commercially-important northern region of Mato Grosso. The plant represents an investment of BRL 62.4 million ($17 million) and is expected to produce 300,000 tonnes of fertilizer by the end of 2018, which will represent about 15% of Tocantins’ total sales by volume.
“Mato Grosso is an important agricultural market, and by expanding our presence we will be better placed to serve customers there,” said José Eduardo Motta, CEO of FTO. “The plant will support the further expansion of agricultural activities in the region and enable us to meet the growing needs of farmers. We have already sold 200,000 tonnes of fertilizer to be delivered by this new unit during the coming months.”
Construction of the 20,000 square meter plant created 400 new jobs, and the facility now employs 70 full-time workers.
Two further blending plants are planned for later this year, one in Catalão in the state of Goiás, which is due to open in July, and a second in Araguari, in the state of Minas Gerais. Founded in 2003, FTO is already one of the largest fertilizer companies in Brazil, with a strong presence in the North, Northeast and Mid-West parts of the country.
“The investment in new FTO plants is part of our strategy to expand in Latin America,” said Dmitry Strashnov, COO of EuroChem. “The opening marks a crucial step on the path to realizing our business development goals in this important growth market.”