Samsung E&A wins $3.51b Saudi fertilizer plant deal

Samsung E&A said Friday it has signed an engineering, procurement and construction contract with Saudi Arabia's SABIC Agri-Nutrients for the "SAN-7 Project."

The contract is worth about 4.7 trillion won ($3.51 billion), with Samsung E&A handling the EPC work alone. The plant is slated for completion in 2030.

The signing ceremony took place Wednesday afternoon (local time) at SABIC's headquarters in Jubail, Saudi Arabia. Top executives from both companies attended, including Samsung E&A President Namkoong Hong, SABIC President Faisal Mohammed Al-Faqeer, SABIC Agri-Nutrients Chairman Abdulrahman Al-Fageeh and SABIC Agri-Nutrients President Fahad Misfer Al Bathal.

SABIC is Saudi Arabia's state-run petrochemical company, and SABIC Agri-Nutrients is its fertilizer subsidiary.

The plant, to be built in the Jubail Industrial City in eastern Saudi Arabia, will use natural gas as feedstock to produce 3,500 tons of ammonia per day. The ammonia will then be processed into 7,700 tons of urea fertilizer daily. All of the fertilizer produced will be exported.

The plant will also include a post-combustion carbon capture facility, allowing carbon dioxide generated during ammonia production to be used in urea synthesis. This will help reduce carbon emissions while improving cost efficiency.

Samsung E&A first entered the Saudi market in 2003 and has since carried out more than 30 projects there. The latest contract further strengthens its position in the market.

The company said it expects to carry out the project smoothly, citing its extensive experience with projects in the Jubail Industrial City, where the new plant will be built.

Meanwhile, Samsung E&A has continued to win major overseas orders this year. In February, it secured a $2.4 billion chemical plant project abroad, followed by a $790 million water treatment project in the Middle East in June. The latest fertilizer plant deal adds to the company's growing overseas order book.

"We plan to bring together our technological capabilities and experience to successfully carry out the project and actively respond to growing global demand for fertilizer plants," a Samsung E&A official said.