Samsung unit wins $843 million Bolivian contract

Samsung Engineering said yesterday it received a notification of award (NOA) for an $843 million fertilizer plant order from Yacimientos Petroliferos Fiscales Bolivianos (YPFB), a state-owned oil company in Bolivia.

This historic project marks the company’s entrance into the Latin American market, it said.

The plant will be built in Entre Rios in Cochabamba, one of nine departments that make up the country. It is slated to produce ammonia and 2,100 tons of urea per day. Urea is an organic compound widely used in fertilizers, and its cultivation in Bolivia is expected to spread from 2.5 hectares (6.1 acres) at present to 105 million hectares in the near future. Samsung will also supply urea to meet demand from Venezuela and Brazil, it said.

The company won the order on a lump-sum turnkey basis, meaning it is responsible for engineering, procurement and construction, with completion set for 2015. Operation and maintenance support will continue for two years after completion, it said. “We are determined to share our expertise in building fertilizer plants by completing the project on time,” said CEO Park Ki-seok.

By Song Su-hyun [ssh@joongang.co.kr]