With Petrobras Projects Halted Since 2014, UFN3, Brazil’s Largest Fertilizer Factory, May Be Completed Under Lula’s Government

The Lula Government Aims To Continue And Finish The Suspended Works Of The Largest Fertilizer Plant In Brazil. After The Suspension Of Petrobras Disinvestment In UFN3, Negotiations Are Expected To Occur For The Continuity Of The State-Owned Company’s Operations At The Plant.

Although there is still no deadline for completion, the Lula Government and its Ministers aim to resume the works of the largest fertilizer plant in the country. UFN3, a nitrogenous fertilizer industrial unit located in the city of Três Lagoas, may come to an end in the coming years. Additionally, there has been a halt in the disinvestment process of the plant by Petrobras.

See: Market Has High Expectations For The Resumption And Completion Of UFN3 Works

Lula Government Aims To Resume UFN3 Works And Complete The Largest Fertilizer Production Plant Project In The Country, Halted By Petrobras Since 2014

Halted by Petrobras since 2014, UFN3, a nitrogenous fertilizer industrial unit located in the city of Três Lagoas, may be nearing its end during the Lula Government.

The current president emphasized that, even without a deadline for completion, he intends to resume the construction works of the fertilizer factory.

Considered the largest fertilizer factory in Latin America, the plant was 80% complete before the halt. Now, the Lula Government is moving to advance the project and finalize the unit.

The plan to build UFN3 began in 2011, but Petrobras halted the works in 2014. With an old disinvestment plan paused by the state-owned company, it will assess the next steps regarding the plant’s management.

“Brazil is too big to renounce its productive potential. It makes no sense to import fuels, fertilizers, oil platforms, microprocessors, aircraft, and satellites. We have the technical capacity, capital, and market sufficient to resume industrialization and service provision at a competitive level,” said President Lula.

The current Lula Government has committed since the beginning of its term to continue with Petrobras’ state projects, thus minimizing the company’s privatization plan.

In this way, the main goal of the ministers and the president is to secure the necessary investments for the completion of the fertilizer factory works.

It could ensure the national market a relief from dependence on imports of this product from European countries by expanding production within Brazilian territory.

Next Steps For The Factory And Petrobras Management Will Be Decided By The State-Owned Company Along With The Lula Government

Recently, the Minister of Agriculture, Carlos Fávaro, stated in an interview that the unit would no longer be sold and that Petrobras would assume the completion of the works.

With the suspension of the UFN3 disinvestment plan, the state-owned company may be responsible for the initial manufacturing of fertilizers at the plant.

With the support of the Lula Government, the current Minister of Planning and Budget, Simone Tebet, said it was an “absolutely right” decision.

She has been directly involved in negotiations to ensure the continuity of the plant’s management in Petrobras’ hands.

Furthermore, the state government has been intensively negotiating with the Lula Government for the completion of the fertilizer factory works.

The Secretary of Semadesc (Secretariat of Environment, Development, Science, Technology, and Innovation), Jaime Verruck, confirmed: “Governor Eduardo Riedel has already spoken with Minister Fávaro, who has the National Fertilizer Plan, he confirmed this continuity.”

Now, Petrobras and the state government await the next steps from the Lula Government regarding the future of the UFN3 works, the largest fertilizer factory in the country.