President Luiz Inácio Lula da Silva signed contracts on Thursday, June 25, to resume construction of the UFN-III fertilizer plant in Três Lagoas [1, 2].
The project aims to reduce Brazil's reliance on imported fertilizers and increase national production to secure the agricultural supply chain. This initiative is part of the new PAC investment program designed to stimulate the regional economy [1, 3].
Petrobras will invest more than R$5 billion [2] into the Unidade de Fertilizantes Nitrogenados III facility. The project had been halted for 11 years before the recent decision to restart work [5].
Local officials expect the construction phase to generate 8,000 jobs [1]. To support this workforce, Petrobras said it will qualify 1,200 people [4]. Additionally, the company has partnered with SESI and SENAI to offer 1,400 training slots [5].
The plant is located in Mato Grosso do Sul, a key agricultural hub. By producing nitrogen-based fertilizers domestically, Brazil seeks to mitigate the impact of global price volatility and supply disruptions, factors that have historically threatened crop yields.
Construction is now underway with the goal of beginning full operations in 2029 [2].
“Petrobras will invest more than R$5 billion into the Unidade de Fertilizantes Nitrogenados III facility.”
The revival of the UFN-III plant represents a strategic shift toward resource sovereignty for Brazil's agribusiness sector. By decreasing dependence on foreign fertilizer imports, the government aims to insulate its massive agricultural export industry from geopolitical instabilities and global market shocks.
