SAO PAULO, Aug 17 (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.
(Reporting by Roberto Samora; Writing by Ana Mano; Editing by
Andy Sullivan)
