Fertilizante Tocantins prepares for expansion in the country.

Acquired by the Swiss group EuroChem, Fertilizantes Tocantins, a fertilizer blending and distribution company with a strong presence in the North and Northeast of Brazil, is preparing a national expansion project; it is estimated that R$ 300 million will be invested over a year and a half (18 months), with investments in logistics and new blending units, initially in Mato Grosso and Goiás; this information comes from José Eduardo Motta, founder of Fertilizantes Tocantins.

July 18, 2016, 17:46 pmUpdated May 28, 2019, 08:43 AM

Acquired by the Swiss group EuroChem, Fertilizantes Tocantins, a fertilizer blending and distribution company with a strong presence in the North and Northeast of Brazil, is preparing a national expansion project; it is estimated that R$ 300 million will be invested in a year and a half (18 months), with investments in logistics and new blending units, initially in Mato Grosso and Goiás; this information comes from José Eduardo Motta, founder of Fertilizantes Tocantins (Photo: Leonardo Lucena).

Tocantins 247 - Acquired by the Swiss group EuroChem, Fertilizantes Tocantins, a fertilizer blending and distribution company with a strong presence in the North and Northeast of Brazil, is preparing a national expansion project. It is estimated that R$ 300 million will be invested over a year and a half (18 months), with investments in logistics and new blending units, initially in Mato Grosso and Goiás. This information comes from José Eduardo Motta, the company's founder.

Negotiations with EuroChem lasted almost a year, and the deal was finalized last week. The Swiss company will hold 50% plus one share. The value of the transaction, which was not disclosed, depends on approval from the Administrative Council for Economic Defense (Cade). If regulatory authorities give the go-ahead, it will be EuroChem's first investment in the country, which last year had revenues of US$4,5 billion. "We needed the investment and support of a player like EuroChem, otherwise we wouldn't be able to compete in such a consolidated market," said Motta.

Founded in Porto Nacional (TO) in 2003, Fertilizante Tocantins has invested around R$ 200 million in the last five years. With business concentrated in "Matopiba" (the confluence of Maranhão, Tocantins, Piauí, and Bahia), the company had a revenue of R$ 1 billion in 2015. The outlook is for a similar level this year because, even with the drop in international fertilizer prices, the trend is for an increase in sales volumes, according to the CEO.