Seoul: Daewoo Engineering and Construction Co. announced it has secured a contract valued at US$784 million to construct a large-scale mineral fertilizer plant in Turkmenistan, marking a significant milestone as the company's first major endeavor in Central Asia.
According to Yonhap News Agency, the South Korean construction firm finalized the agreement on Saturday with Turkmenhimiya, Turkmenistan's state-owned chemical company. The signing ceremony took place in Turkmenistan, with Daewoo E and C's Chief Executive Officer Kim Bo-hyun in attendance.
Daewoo E and C emerged as the preferred bidder for the project in October, following which a framework agreement was signed last month. The fertilizer plant is set to be built in Turkmenabat, Turkmenistan's second-largest city, approximately 450 kilometers east of the capital, Ashgabat. The facility will boast an annual production capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate.
The contract value represents about 10 percent of Daewoo E and C's projected annual sales for 2024. The project is expected to reach completion 37 months after the groundbreaking.
The company also expressed its intention to leverage this opportunity to expand its footprint in the region further, with an eye on additional contracts in the petrochemical and fertilizer sectors, as well as urban development initiatives.
A company official stated, "We will mobilize the full capabilities of our organization to deliver a world-class facility. We also aim to strengthen our global presence through additional overseas projects in countries such as Iraq, Nigeria, and Libya this year."