St. Petersburg, 17 June 2016 – EuroChem Group AG (“EuroChem” or the “Group”), a leading global agrochemical company, today announces the signing of a $255 million agreement for the construction of EuroChem’s new ammonia plant in Kingisepp, Russia (the “Agreement”). The Agreement was signed between EuroChem, Maire Tecnimont, a technology, engineering and contracting player in the hydrocarbon industry, and Velesstroy, a Russian construction company, in the presence of Russian President Vladimir Putin and Italian Prime Minister Matteo Renzi, at the St.Petersburg International Economic Forum.
With a design capacity of 2,700 tonnes per day, EuroChem’s future ammonia plant in Kingisepp will use the latest technology for ammonia production. Italian Maire Tecnimont has carried out engineering, procurement and construction services for this project, while Velesstroy will be responsible for the construction of the mainproduction facilities.
In total, EuroChem plans to invest approximately $1bn (€900 million) in the Kingisepp ammonia project which is expected to be brought online in 2018. The future plant is anticipated to create over 250 additional jobs in the region and pay over RUB 3bn in tax annually.
EuroChem’s Kingisepp ammonia project is being developed together with Maire Tecnimont while SACE is providing a loan guarantee. The project is supported by the Governments of the Russian Federation and Italy, the Administration of the Leningrad region and the Ministry of Industry and Trade of the Russian Federation (Minpromtorg).
The Kingisepp ammonia plant will be the first of potentially five ammonia-urea projects to be delivered in Russia, the United States and Kazakhstan over the next 10 years under the Memorandum of Understanding signed between Eurochem, Maire Tecnimont and SACE in April 2015. These new projects are expected to add five million tonnes of ammonia and 7.5 million tonnes of urea capacity per annum.
About EuroChem Group AG
EuroChem is a leading global agrochemical company producing primarily nitrogen and phosphate fertilizers, as well as certain organic synthesis products and iron ore. The Group is vertically integrated with activities spanning from mining and hydrocarbons extraction to fertilizer production, logistics, and distribution. EuroChem is currently developing two sizeable potash deposits in Russia with its VolgaKaliy and Usolskiy Potash greenfield projects. Headquartered in Zug, Switzerland, the Group operates production facilities in Belgium, China, Kazakhstan, Lithuania, and Russia and employs more than 23,000 people globally. For more information, please visit www.eurochemgroup.com or contact:
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