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    Latin America

    29 July 2026

    Fermachem to build $1bn fertilizer plant in Durango

    Written by Natalie Noor-Drugan

    Mexico’s Fermachem is moving ahead with a large nitrogen fertilizer plant in Lerdo, Durango, backed by federal and state authorities and positioned as one of the largest industrial investments in the state.

    Project scope and investment

    According to the Durango state government, the project represents an investment of more than MXN 28 billion ($1.6 billion) and will create around 3,000 direct jobs during construction. Operations are scheduled to start in the second half of 2027.
    Under Plan México, a federal announcement confirms that Mexican industrial group Fermaca Dreams will invest $1 billion in the Fermachem fertilizer plant and $2.7 billion in the Fermaca Digital City data‑centre project, for a total package of $3.7 billion in Durango

    Dr Esteban Alejandro Villegas Villarreal, the constitutional Governor of the State of Durango. Image courtesy of Government of the State of Durango.

    The Lerdo plant is designed to produce about 100,000 t/y of nitrogen fertilizers, with a federal statement specifying a target of 600,000 t/y of urea for agricultural use to reduce Mexico’s import dependence. Supply is aimed at the domestic farm sector, with exports also envisaged.

    Strategic positioning and support

    Durango’s Governor Dr. Esteban Villegas Villarreal describes Fermachem as “one of the mega investments in the history of Durango” and says the plant will strengthen Mexican agriculture, support productivity and open new export opportunities. He notes that the project has financial backing from the US International Development Finance Corporation (DFC) and commercial agreements that “guarantee its viability from the outset”, positioning Durango as a key hub for industrial and agri‑food development.

    At federal level, President Claudia Sheinbaum describes Fermachem as a green fertilizer project that will support Mexico’s food security and domestic agriculture, and notes that it complements fertilizer plants being developed with Pemex, Mexico’s state‑owned oil and gas company that also produces petrochemicals and fertilizers.

    Natalie Noor-Drugan

    Read more from Natalie Noor-Drugan

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