Just a few weeks after announcing that it plans to double capacity in Brazil, expanding from four to eight blending facilities (GM Dec. 3, p. 1), Nutrien Ltd., Saskatoon, has confirmed that it plans to add four more, for a total of twelve. With twelve units, Nutrien said it will be able to cover 10 percent of local demand.
Nutrien delivered a record 1 million mt of fertilizer in Latin America so far this year, heading for 1.2 million mt total in 2021. In Brazil, the company expects a 40 percent increase this year.
Nutrien’s four current blending plants are in Minas Gerais and Sao Paulo, with two in Goiás. They have an approximate capacity of 700,000 mt/y. The next four will be in Cerrado and Southeast regions – close to farms, according to the company, as opposed to competing suppliers who are based near ports. The company has not indicated where the four after that will go.
Nutrien has made several acquisitions in Brazil in the past few years, but still sees the market as fragmented with more opportunities. Nutrien just recently announced the launch of five new Experience Centers in Brazil, with seven more planned for later this year (GM Nov. 12, p. 1). In addition to the Experience Centers, the company has 42 retail branches in Brazil, 48 in Argentina, 12 in Chile, and six in Uruguay.
Nutrien said it plans to spend R$600 million in 2022 on Brazil expansion, and that it grossed R$1.8 billion in the country last year. Revenues this year are expected to increase 70 percent, which would be nine times higher than in 2019.