Mexico state-owned firm Pemex will invest up to $475 million to purchase an revamp a fertilizer production facility in Veracruz. The company said the deal will allow the Pemex to produce up to 990,000 tons of urea every year, according to Reuters,

In a statement, Pemex said the transaction will be conducted between its subsidiary PMI and Agro Nitrogenados, a subsidiary of Minera del Norte. The deal would allow the state oil monopoly to supply 75% of the country's demand for urea. The firm also said it would replace more than $400 million worth of yearly urea imports. Urea is used as a source of nitrogen in the production of fertilizer, the report detailed.

Under the terms of the said deal, Pemex's petrochemical complex in Veracruz will supply the ammonia for fertilizer production, the report said.

Last year, Mexican president Enrique Pena Nieto launched an energy overhaul that would make way for private investment in the gas, oil, and petrochemical industry of Mexico. These sectors are largely controlled by the state, wrote Reuters.