Daewoo E&C wins $731 million deal to build plant in Turkmenistan

Daewoo E&C was chosen to build a mineral fertilizer plant in Turkmenistan for around trillion won ($731 million), marking the construction company's first major project in Central Asia, the firm said Monday.

The map shows the site for the mineral fertilizer plant in Turkmenabat, a city in Turkmenistan [DAEWOO E&C]

Daewoo E&C was chosen to build a mineral fertilizer plant in Turkmenistan for around trillion won ($731 million), marking the construction company's first major project in Central Asia, the firm said Monday.

The announcement was made Friday by Turkmenhimiya State Concern, a state-owned chemicals company.

Under the deal, Daewoo E&C will construct production and auxiliary facilities in Turkmenabat, a city located 500 kilometers (310 miles) east of capital city Ashgabat. The plant is expected to produce 350,000 tons of phosphoric acid fertilizer and 100,000 tonnes (110,231 tons) of ammonium sulfate in a year, according to the firm.

The company said it plans to use the project as a springboard to secure further construction contracts in Turkmenistan's petrochemicals and fertilizer sectors, as well as for infrastructure and city development projects.

Daewoo E&C lost its bid to construct a urea ammonia fertilizer plant in Turkmenbashi, a city in western Turkmenistan, that was expected to produce 1.55 million tons of urea and 660,000 tons of ammonia annually, a company spokesperson said. The company is continuing its efforts to be involved in the second phase of the Arkadag smart city project, which involves developing a city for around 64,000 residents in an area 30 kilometers southwest of Ashgabat, he added.

The company opened a branch in Ashgabat last November to better administer its projects in Turkmenistan, and its chairman, Jung Won-ju, was part of a business delegation accompanying President Yoon Suk Yeol for his state visit in June.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]