Daelim wins $825m contract for Saudi ammonia plant
Win follows yesterday's announcement of a $290m Butanol deal
Ma'aden, the Saudi Arabian mining company, has announced that it has awarded a contract worth $825m (SR: 3.1bn) to Korean company Daelim.
The plant will have a capacity to produce 1.1m tonnes of ammonia per year and wiill be built at its huge $7bn Waad Al Shammal phosphate plant in Ras Al Khair.
The engineering, procurement and construction (EPC) contract to deliver the plant will take 39 months to complete and is expected to be delivered by the end of 2016.
Project partners and financial advisor HSBC are expected to sign a deal to fund the plant by the fourth quarter of 2013, but Ma'aden has said that it will finance construction during the interim.
The ammonia plant represents the first phase of the $7bn (SR: 26bn) phosphate plant.
It also comes a day after the company signed a $293m Butanol plant deal with Saudi Butanol for a facility at Jubail Industrial City which will start on site in January 2014 and complete in May 2015.