India’s Oswal Group, as well as a joint venture of Terra Industries Inc. and Orica Mining Services of Australia, are each proposing to build a $1.2 billion plant in Peru, according to Peruvian and South American media reports.
Oswal is interested in building a $1.2 billion fertilizer plant in Peru, according to that country’s media. “We are thinking of building the world’s biggest urea plant that would take care of all of Peru’s agriculture needs for the next 25 years and we could export,” Rajiv Gupta, the head of the group, was quoted after meeting with President Alan Garcia. The plant would produce urea and ammonia.
In the meantime, there have also been reports that a new $1.2 billion chemical complex was being planned for a location near Lima, with an expected completion date of 2009. Terra and Orica were both reported to be involved in the planning. “Our only comment is that Terra is always looking for opportunities for nitrogen projects in various parts of the world,” said a company spokesman. Orica had not commented at press time.
In March, Brazil’s oil company Petrobras said it would invest $800 million in Peru’s petrochemicals industry. Peru’s government is trying to lure foreign investment as the domestic economy grows swiftly. Last year Peru’s economy grew 8.03 percent, the fastest pace in 11 years.