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Urea Production in Brazil Resumes in January with Petrobras Strengthening Nitrogen Fertilizers and the National Agribusiness
Petrobras resumed nitrogen fertilizer production in the Northeast in January
reactivating the FAFEN plants in Sergipe and Bahia to manufacture ammonia, urea, and ARLA 32.
The initiative now involves initial investments of R$ 38 million in each unit, taking place at the industrial hubs of Laranjeiras (SE) and Camaçari (BA)
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Its central objective is to reduce dependency on imported fertilizers and increase urea production in Brazil
And strengthen the national agribusiness with strategically produced domestic inputs.
The resumption marks a relevant movement by the state-owned company in the nitrogen fertilizers sector
This area is considered strategic for food security and the competitiveness of the agricultural sector.
Additionally, the operation generates jobs, reactivates regional industrial chains, and reduces the country’s vulnerability to fluctuations in the international agricultural input market.
FAFEN Northeast Expands Capacity and Reinforces Urea Production in Brazil
With both units in operation, FAFEN Northeast will have a combined capacity to produce 3,100 tons of urea per day.
This volume represents about 12% of the entire national market, a significant percentage in a scenario where Brazil primarily depends on imports to meet its demand.
In Sergipe, the unit located in Laranjeiras began urea production on January 3, after restarting ammonia production on December 31, 2025.
The plant has a daily capacity of 1,800 tons, equivalent to 7% of national urea consumption.
In Bahia, the Camaçari factory completed its maintenance in December 2025 and is in the commissioning phase, a technical step that precedes full operational startup.
The expectation is that urea production at the Bahia unit will begin by the end of January, with a capacity of 1,300 tons per day, about 5% of the Brazilian market.
Integrated Logistics Strengthens Nitrogen Fertilizers
The operation in Bahia goes beyond industrial production.
The complex includes ammonia and urea maritime terminals at the Port of Aratu in Candeias, which improves the logistics of bulk handling and distribution of nitrogen fertilizers.
This factor is strategic for reducing costs, ensuring a steady supply, and increasing the competitiveness of domestic products over imports.
Furthermore, the use of natural gas as the main raw material in the production process strengthens the integration of the energy chain with the fertilizer industry, adding value to the input and enhancing industrial efficiency.
National Production Reduces Dependence on Imported Fertilizers
Currently, all urea consumed in Brazil is imported, exposing the country to currency, geopolitical, and logistical risks.
In this context, the resumption of FAFEN in the Northeast represents an important step towards reducing dependence on imported fertilizers.
“Currently, all urea consumed in Brazil is imported.
With the resumption of national production, Petrobras increases the supply of the input in the domestic market, reduces external dependence, and strengthens the agribusiness production chain,” said William França, director of industrial processes and products at the company.
Therefore, increasing urea production in Brazil directly contributes to the security of agricultural supply, especially in a global scenario marked by conflicts, trade restrictions, and price volatility.
FAFEN Northeast and the Goal of Expanding National Production
According to Petrobras, the two FAFENs in the Northeast, combined with the Araucária Nitrogenados plant in Paraná, will account for about 20% of the entire national urea demand.
However, the company’s strategy goes beyond the current resumption.
“The two FAFENs, along with Araucária Nitrogenados, will account for 20% of the total urea demand in Brazil.
Our expectation is to raise national production to 35% in the coming years, with a new plant under construction in Mato Grosso do Sul,” said William França.
This expansion plan reinforces the role of the state-owned company in rebuilding the industrial policy of nitrogen fertilizers
considered essential to reduce the country’s external vulnerability.
Job Creation Boosts Regional Economy
In addition to the productive and strategic impacts, the resumption of factories in the Northeast also brings direct effects to the labor market.
According to Petrobras, reactivating the units generates 1,350 direct jobs and about 4,050 indirect jobs, boosting the local and regional economy.
Meanwhile, states like Sergipe and Bahia benefit from the reactivation of relevant industrial hubs, with positive effects on income, services, and tax revenues.
Nitrogen Fertilizers at the Center of Agricultural Strategy
In a country that ranks among the largest food producers in the world, ensuring the supply of nitrogen fertilizers is a strategic matter.
Thus, the resumption of urea production in Brazil, through FAFEN Northeast, repositions Petrobras in a key segment
Thus, contributing to a more competitive agribusiness less dependent on foreign sources.
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