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Daewoo E&C signs $784M contract to build fertilizer plant in Turkmenistan

Published: 26 May. 2025, 11:56

This photo, provided by Daewoo Engineering & Construction, on May 26, shows a recent signing ceremony for a contract for the Korean builder to construct a large-scale mineral fertilizer plant in Turkmenistan. [YONHAP]

Daewoo Engineering & Construction said Monday it has signed a $784 million deal to build a large-scale mineral fertilizer plant in Turkmenistan, marking the company's first major project in Central Asia.

The Korean builder said that the final contract was signed Saturday with Turkmenhimiya, a state-owned chemical company of Turkmenistan. The signing ceremony, held in the Central Asian nation, was attended by Daewoo E&C CEO Kim Bo-hyun.

Daewoo E&C was selected as the preferred bidder for the project in October and signed a framework agreement last month.

The plant will be constructed in Turkmenabat, the country's second-largest city located about 450 kilometers (280 miles) east of the capital Ashgabat, with a capacity to produce 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate annually.

The contract is equivalent to roughly 10 percent of Daewoo E&C's annual sales for 2024. The project is scheduled to be completed 37 months after groundbreaking.

The company said it plans to use the opportunity to actively expand its presence in the region, targeting further contracts in petrochemical and fertilizer-related sectors, as well as urban development projects.

"We will mobilize the full capabilities of our organization to deliver a world-class facility," a company official said. "We also aim to strengthen our global presence through additional overseas projects in countries such as Iraq, Nigeria and Libya this year."

Yonhap