Pemex' fertilizer plant: scrap metal. Pemex' fertilizer plant: scrap metal.

Fertilizer venture a big bust for Pemex

11-billion-peso fertilizer dream more like a nightmare for state oil company

Pemex’ foray into the fertilizer industry — intended to reactivate domestic production — has been a resounding multi-billion-peso failure, the Federal Auditor’s Office (ASF) has found.

ADVERTISEMENT

The state oil company decided in 2014 to venture into the fertilizer industry by acquiring two privately-owned firms.

After an investment of 11 billion pesos (close to US $850 million), the parastatal soon found that all it had to show for its money was little more than rusted scrap metal, and that the market it intended to reactivate was already saturated.

In December 2014 President Enrique Peña Nieto announced that his administration’s fertilizer strategy would produce enough to replace 70% of the country’s imports.

Pemex Fertilizers, a subsidiary of the oil company, reported losses of more than 334 million pesos (close to US $18 million) between January and September last year, up from 26 million pesos two years before.

According to official data, in the two years after Pemex set about to reactivate the industry, the national production of nitrogen fertilizers dropped 4%, while that of phosphate fertilizers dropped 9%.

Pemex and the Peña Nieto administration planned to produce one million tonnes of nitrogen fertilizer by the end of last year, but by October the figure was barely half that, at 529,000 tonnes.

ADVERTISEMENT

At the time of the purchases, critics pointed out that fertilizer production was already saturated.

One of the factories that Pemex purchased, Agro Nitrogenados, had been in Pemex’ hands before, in the 1990s. After it was sold off, the factory was all but abandoned.

Investigations by the federal auditor have also found that when Pemex bought the plant, located in the Pajaritos petrochemical complex in Coatzacoalcos, Veracruz, it was little more than scrap metal.

The probe also found that Pemex had overpaid by $93 million and that it had been warned about the plant’s bad shape.

Despite reports that the plant had been abandoned for 14 years, Pemex dismissed them and carried on.

Remodeling the factory was 142% over budget, said the ASF.

It now appears that Pemex is trying to unload its fertilizer investment. According to a report last month by Bloomberg, the oil company has been exploring options for selling Pemex Fertilizers.

Source: Animal Político (sp), Reforma (sp)

Stories from our archives that you might enjoy

  • miabeach

    Mexico bailed out this friend of corrupt politicians when they bought this white elephant and demands American taxpayers support millions of Mexicans who have no friends. No more, we had enough of that crap.

    • owl905

      What a bizarre piece of rubbish. You managed to insult everything your could with no content about the actual topic.

      • miabeach

        It’s all about the topic at hand, maybe you just don’t understand English good. If Mexican leadership wasn’t so corrupt and didn’t steal the national treasure their country would advance and Mexicans would be forced into my country to steal from our children’s future. Mexico is for Mexicans.

        • owl905

          “maybe you just don’t understand English good.”
          The GSR residue on your face is priceless.
          The rest of your bigot trash needs a resting place.

          • miabeach

            What’s GSR residue?

          • owl905

            From shooting yourself in the face. hth.

          • miabeach

            Than it should be GS Residue or GSR. Not GSR Residue. It’s like calling you a stupid moron which I never would. I would call you stupid or I would call you a moron but I would never call you a stupid moron.

          • owl905

            You are a stupid moron.

        • Beau

          “Mexicans steal from your children”????- White idiots like you belong in the Appalachians learning to play the banjo. No doubt you are a supporter of Cheeto- aka -Agent Orange.

          • miabeach

            Mexicans steal from my children in a million ways, maybe more. Mexicans steal from my children when illegal Mexican families pack their mobs of needy hungry children into our schools. Our schools become so overcrowded that my children languish in cheap portable classrooms that are dropped onto play grounds eliminating space for outdoor recreation. Mexicans steal from my children when illegal Mexican families force us to feed their hungry needy children twice a day in school leaving school districts less money for education. Mexicans steal from my children when louse laden Mexican children share their head lice with all other children and whole schools have to be deloused. Mexicans steal from my children by forcing us to pay for the healthcare of illegal Mexicans, they steal when we are forced to pay too much tax money to police illegal Mexicans or have extra and bigger prisions to lock up all the illegal Mexicans they in our country. Mexicans steal from my children when we are forced to give illegal Mexicans food stamps and housing allowances this taxing my children’s future. Mexicans who drive drunk and kill American families, or shoot Americans steal from my children. There’s so many ways that Mexicans steal from my children and we need to stop all these illegals from,stealing my children’s future.

          • Beau

            No body is stealing from you. Hispanics whether legal or illegal, pay taxes. But you are too stupid to understand that concept. Your children future is bleak because most likely you are on welfare and can’t pay for their education. Only a toothless redneck woman like you can speak with so much hate against other race. What color is your poop? white? Next time you take a dump remember what you commented when you flash the toilet and while you are at it, spray some Lysol. Because your poop stinks.

          • miabeach

            Illegal hispanics need to stay in their own corrupt countries and pay taxes there. Legal immigration is what we want and demand. It’s our country and our laws, anyone who can’t respect our law and culture is not deserving to be here. Not needed and not wanted. Every country I ever visited I respected local laws and traditions in the hope I would be welcome back. Latinos have a problem with that, they weren’t raised properly and haven’t learned how to be respectful of others. They are treated like dogs in their own country by their own people and bring that bad attitude with them. Next time I flush I’ll flush twice because it’s a long way to Latin America.

          • Beau

            Ok granny- have a margarita and smoke a churro- you’re too uptight and constipated by hate-take some Metamucil before going to bed. Ta-ta.

          • miabeach

            Neither me or my children have to sneak into any forigen country and beg for a living. Go make Latin America great again. Like it was before Spain fled to get away from you all. Spain got tired of feeding you people and now we are too.

          • miabeach

            You have a big hang up about the color of people’s skin. You must be a racist. Not everyone has that poop brown skin color you sport and problay smell like too.

        • Jayne Halle

          It’s “English well” not English “good.” Well modifies the verb “Understand” so you need an adverb rather then an adjective. Also, you need a comma after “treasure” since you have a run on sentence.A period after “advance ” is indicted since the sentence is too long and rambling. I don’t understand your sentence about Mexicans “stealing your children’s future.” Do you mean that they will take restaurant and agricultural jobs from your children? As far as I know, the Caucasians aren’t big on fast food jobs and harvesting fruits and vegetables.

  • owl905

    Hopefully there are options to turn this one around. One underlying problem is a decrease in Mexican corn yields. The answer has been imports, but the real answer is in new strains of corn better resistant to the altered climate. There is also the possibility for renewed tariff walls with the end of NAFTA. That will create the conditions for tariff barriers that protect Pemex in the domestic market.

    • WestCoastHwy

      Pemex (no name of who made the Decisions) and the Peña Nieto administration (also no name of who made the Decisions) have managed to Legally Extort Monies from the Mexican People of which there is no options to turn this around except to Extort more Monies from the Mexican People Blatantly.

      • owl905

        Provide evidence to make that accusation stick. From here it looked like a questionable purchase price based on the condition of the asset.

  • K. Chris C.

    Bankrupter! More pressure for the Mexican tyranny to cozy up to wealthy China, and risk pissing off the belligerent US tyranny who sees Mexico’s oil as theirs.

    An American citizen, not US subject.

  • WestCoastHwy

    Need more Monies, Raise the price of Gasoline and Gouge the Mexican People and Launder that Monies through a Fertilizer Plant! what an Excellent Plan. VIVA MEXICO

  • Güerito

    Pemex, the reverse King Midas: Everything it touches turns to sh*t.

  • deepwater805

    The Mexican government are great business men: said no one ever….

  • Rob Mellors

    Pemex couldn’t oganise a piss up in a brewery! What a disaster zone.

  • miabeach

    Mexicans steal from my children in a million ways, maybe more. Mexicans steal from my children when illegal Mexican families pack their mobs of needy hungry children into our schools. Our schools become so overcrowded that my children languish in cheap portable classrooms that are dropped onto play grounds eliminating space for outdoor recreation. Mexicans steal from my children when illegal Mexican families force us to feed their hungry needy children twice a day in school leaving school districts less money for education. Mexicans steal from my children when louse laden Mexican children share their head lice with all other children and whole schools have to be deloused. Mexicans steal from my children by forcing us to pay for the healthcare of illegal Mexicans, they steal when we are forced to pay too much tax money to police illegal Mexicans or have extra and bigger prisions to lock up all the illegal Mexicans they in our country. Mexicans steal from my children when we are forced to give illegal Mexicans food stamps and housing allowances this taxing my children’s future. Mexicans who drive drunk and kill American families, or shoot Americans steal from my children. There’s so many ways that Mexicans steal from my children and we need to stop all these illegals from,stealing my children’s future.

FreeCurrencyRates.com
ADVERTISEMENT