S Korea's Daelim wins Ma'aden construction contract in Saudi Arabia
Daelim will build an ammonia plant in the kingdom's Ras Al-Kahir Industrial City
South Korea’s Daelim Industrial has won an $892m (SAR3.35bn) contract from Saudi Arabia Mining Company (Ma’aden) to build an ammonia plant in the kingdom's Ras Al-Kahir Industrial City.
Daelim Industrial and Saudi Daelim Ltd will carry out the engineering, procurement, and construction (EPC) work for the project, which will be implemented over 38 months, according to an announcement on Saudi stock exchange Tadawul on 22 October 2018.
The design capacity for the plant is approximately 1.1 tonnes of ammonia a year.
Darren Davis, president of the Saudi state-run mineral company Ma’aden, and Heon Jae Yim, senior executive vice president and chief executive officer of the plant division at Daelim, attended the signing ceremony.
This is Ma’aden’s third ammonia plant as part of its previously announced Phosphate Three project, which will manufacture phosphate fertilisers in a bit to expand the segment’s business.
Announced in 2016 with an estimated total cost of $6.4bn (SAR24bn), Phase 3 of the project is expected to add three million tonnes of production capacity by 2024.
“This project is an additional milestone toward achieving the kingdom’s Vision 2030, and will amplify Ma’den’s presence as a phosphate producer in world markets as well as its competitive advantage and leadership in this vital sector,” the bourse filing read.
Daelim is somewhat of a regular feature in the Middle East’s construction market. In July 2013, it signed a $293.3m (SAR1.1bn) contract with Saudi Butanol Co, a joint venture between affiliate company Saudi Acrylic Acid Co, Saudi Kayan Petrochemicals and Sadara Chemical, to build a butanol plant at Jubail Industrial City.
Five months later saw it secure a $1.9bn contract to expand the facilities of the Isfahan Oil Refinery in Iran’s capital city.