Press Information

MHI Receives Order for Large-scale Fertilizer Complex in Algeria
-- Joint Project with Daewoo Engineering & Construction of Korea --

No.1234
Print

Tokyo, April 23, 2008 – Mitsubishi Heavy Industries, Ltd. (MHI), jointly with Daewoo Engineering & Construction Co., Ltd. of Korea, has received an order for a large-scale fertilizer complex to be constructed in Algeria. The order was placed by Algeria Oman Fertilizer Company (El Djazairia El Omania Lil Asmida SPA), a joint venture between the Suhail Bahwan Group Holding LLC of Oman and Sonatrach, an Algerian government-owned company formed to exploit the country's hydrocarbon resources. The plant on order will mark the world's largest facility to be delivered in a single phase, with the total construction cost to run to approximately 2.4 billion dollars. The plant is slated to go on-stream in mid-2012.

The fertilizer production complex will be built in the Arzew industrial zone near Oran, the second largest city in Algeria, on the Mediterranean coast. It will initially produce ammonia from natural gas, and almost all ammonia output will be converted to urea for producing granular urea to be used as fertilizer. The complex will consist of two 2,000 mtpd (metric tons per day) ammonia production plants, two 3,500 mtpd urea production and granulation plants, and supporting facilities. The plants will adopt process technologies from Haldor Topsøe A/S of Denmark for ammonia, Snamprogetti S.p.A. of Italy for urea, and Uhde Fertilizer Technology B.V. of the Netherlands for granulation.

Based on the EPC (engineering, procurement and construction) contract, MHI, as the leader of the consortium, will be responsible for basic and detailed design work, equipment procurement and dispatch of technical advisors for erection and test operation. Daewoo Engineering & Construction, the consortium partner, will take charge of the construction work.

Algeria is the world's fourth-largest producer of natural gas and also produces high-quality light crude oil. Exporting these natural resources, the country has earned significant foreign currency. In recent years, Algeria has been promoting the production of high-value-added products from these resources to foster its own industries, and the large-scale complex on order figures among the country's initiatives for this purpose. As demand for fertilizer is expected to continue expanding steadily due to rising food production in response to global population growth, the new complex is expected to contribute substantially to Algeria's economic development.

MHI has undertaken a number of gas projects for Sonatrach since 1985 and delivered many large-scale ammonia/urea plants in operation worldwide. MHI believes that the high evaluation of these track records accorded by the customer contributed largely to the award of the latest order.

Leveraging this order, MHI will further strengthen its marketing activities to secure successive orders for synthesis gas and petrochemical plant projects, at the same time enhancing the company's presence in the area of fertilizer production plant projects.