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BNDES approves financing of fertilizer plant in Sete Lagoas, in Minas Gerais state

09/10/2020

 The Brazilian Development Bank (BNDES) approved financing of R$ 14.8 million for modernizing and expanding the production unit of Multitécnica Industrial Ltda. The project will increase the supply of inputs manufactured in the country for fertilizers and animal feed, generating positive impacts on the productivity of the Brazilian agricultural sector and on food supplies in the country. During the implementation phase, 100 new jobs will be generated and, after the completion of the project, 35 new direct jobs. 

Based in Sete Lagoas (Minas Gerais state), Multitécnica produces simple and complex mineral fertilizers for agriculture, additives and ingredients for animal nutrition and inorganic products for use in industrial activities. The total investment of the project will be R$ 19.6 million and will be used to expand the company’s total magnesium sulfate production to 74,400 tons in 2022. In 2019 the company produced 45,500 tons. This is the mineral used as fertilizer and additive for animal feed. The project will also expand the manganese production line, the company’s product input intended for export.  

Brazil has vast agricultural potential. Agribusiness is responsible for an important portion of the gross domestic product (GDP), and the country is one of the largest global producers and suppliers of grains, sugarcane, meat and forest products, having one of the most competitive cost structures in the world. As a major agricultural producer, the country is also a major fertilizer consumer. Given the strategic importance of fertilizers for the country, it is necessary to reduce the participation of imports in domestic consumption, increasing domestic production. The country has reserves of phosphorus and potassium, raw materials for producing phosphate and potassic fertilizers.

“The use of nutrients enhances agricultural production, increases the efficiency of rural producers and expands the supply of food to the population, thus contributing significantly to the final price of these products for the consumer. These strategic inputs are mostly imported, so that strengthening  the production chain in the country also contributes to reducing external dependence,” says Marcos Rossi Martins, deputy managing director of the Industry, Services and Foreign Trade Division of BNDES.  

Multitécnica Industrial – Based in Sete Lagoas (Minas Gerais state), Multitécnica has been operating since 1993 in the production and marketing of mineral salts for different productive sectors. The products marketed by the company are mainly intended for the national agricultural sector. The company has been exporting for more than 15 years, mainly marketing manganese oxide (animal nutrition) and manganese dioxide (water treatment), with emphasis on European Union clients. 

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. Its actions focus on socioenvironmental and economic impacts in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in formulating solutions for resuming economic growth.

 

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