Brazil’s Heringer to Resume Operations at Paranaguá Port After Five-Year Hiatus Amid Restructuring

Amid a crisis in the agricultural inputs sector and restructuring imposed by its judicial recovery process, Fertilizantes Heringer – controlled by Russian multinational Eurochem – has announced the reactivation of its unit in Paranaguá. Operations are expected to resume by June, providing new momentum for the company, which faces financial challenges and has just confirmed the “hibernation” of three more industrial plants in Brazil.

According to a statement released to the market last week, the factories in Rio Verde (GO), Ourinhos (SP), and Iguatama (MG) will have their activities suspended indefinitely. These join the units in Dourados (MS) and Rosário do Catete (SE), which were shut down in October 2024, and the Porto Alegre (RS) plant, which has been inactive since 2020. The Paranaguá unit had been deactivated in 2019, resulting in the dismissal of around 400 workers at the time.

According to the company, the decision is based on a “historically poor financial performance” and the “low standalone economic viability of the plants in the current market context.” The aim is to reduce fixed costs and concentrate production in units with greater return potential, such as the one in Paranaguá.

Paranaguá Gains Prominence

According to Marcelo Ferri, Eurochem’s Market Development Director and head of operations in the southern region of Brazil, the Paranaguá unit already has an operating license and should begin production within 60 days. The plant had been kept in hibernation in recent years but will now be reactivated with an initial focus on producing simple fertilizers.

The company expects to handle around 500,000 tons from the Paranaguá unit in 2025. The plant has a total capacity of 800,000 tons, which could be expanded to 1 million tons. If the projection holds, the increase in sales could represent an 8% growth for Eurochem in Brazil, even with stable volumes in other regions.

The company plans to invest R$200 million in 2025, part of which is already allocated to the reactivation of the Paranaguá unit, which is located at Brazil’s leading port for fertilizer handling.

Judicial Recovery and Billion-Real Losses

Since 2021, when Eurochem took control of Fertilizantes Heringer, the company has been working to reverse a difficult financial situation. In its most recent financial report, the company posted a net loss of R$1.15 billion in 2024 – a 219% increase from the R$361 million loss in 2023. Net revenue also fell to R$4.6 billion last year, a 13.6% decrease compared to the previous year.

Cash flow difficulties and fluctuations in agricultural input prices have forced Heringer to keep part of its 14 industrial units inactive, with decisions to reactivate or sell being evaluated individually. According to the official statement, the Ourinhos, Iguatama, and Rio Verde plants are still under review and could be sold or reopened depending on market conditions.

For example, the Rio Verde plant was already shut down between 2019 and 2021 during the early stages of the judicial recovery process.

Regional Impact

The reactivation of the Paranaguá unit is expected to impact the local economy directly. In addition to creating jobs and stimulating the regional logistics chain, the resumption of operations further strengthens the Port of Paranaguá as a strategic hub for fertilizer imports and distribution in Brazil.

Source: Ilha do Mel FM

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