China's Shaanxi Coal Group has announced that it will invest US$1.25 billion to set up a fertilizer plant in tierra del Fuego province in southern Argentina. 

The Argentine ambassador to China, Sabino Vaca Narvaja, visited the Chinese province of Shaanxi, where he met with Governor Zhao Yide.

There he visited a model plant of the Chinese company Shaanxi Coal Group where urea is produced.

Chinese factory in Argentina

The initiative includes the installation of a thermoelectric power plant for the generation of power for the plant and the local population and the improvement of the infrastructure of the ports of the province. 

Under the agreement, Shaanxi Coal Group is committed to investing in the development of a project with an annual capacity of 600,000 tons of synthetic ammonia and 900,000 tons of urea, among other products.

According to the announcement, when ready, it will be the most modern fertilizer plant in Latin America. 

The aim of the industry is to supply the internal market and export the surplus.

China

China is Argentina's first trading partner. In 2021, Argentine exports to China reached US$6.3 billion, mainly for soybeans and meat.

Recently, the neighboring country joined the Belt and Silk Road (BRJ) initiative, the Chinese project to finance infrastructure and expand its influence in the world.

About 25 projects were signed on president Alberto Fernández's recent trip, mostly infrastructure plans, including expansion works and reforms of railway lines, transportation programs, electrification projects and a plant for pulp and paper production, among other projects.

Source: Canal Rural