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NEWS

MHI and Mitsubishi Corporation to Build Large-scale Fertilizer Plant in Uzbekistan for Uzkimyosanoat Joint Stock Company

www.benzinga.com
24 July 2015

Mitsubishi Heavy Industries, Ltd. (MHI) and Mitsubishi Corporation (MC) will build a large scale ammonia and urea fertilizer production plant for Navoiyazat Joint Stock Company (Navoiyazat JSC), a chemical production company of the Uzkimyosanoat Joint Stock Company (Uzkimyosanoat JSC) that manages chemical enterprises in Uzbekistan. An EPCC (engineering, procurement, construction and commissioning) contract with Navoiyazat JSC will soon take effects.

The fertilizer plant will be built in Navoiy, a city in the central region of the country. Utilizing Uzbekistan's abundant natural gas resources as feedstock, the plant will have the capacity to produce 2,000 mtpd (metric tons per day) of ammonia and 1,750 mtpd of urea supergranules using the state-of-the art technologies and licenses from world leading companies. MHI will be responsible for fertilizer plant design, manufacture and procurement of equipment, on-site construction work and commissioning. MC, jointly with Mitsubishi Corporation Machinery, Inc., will handle transportation of plant equipment.

Uzbekistan became an independent state after the breakup of the former Soviet Union in 1991. Thanks to successful market-oriented economic reforms, the country has maintained a high economic growth rate of 7-9% since 2004. Along with this economic development, Uzbekistan is conducting a program to modernize its infrastructure and production facilities with introduction of modern and energy efficient technologies. The new fertilizer plant cons0truction project is part of this initiative. The project also aligns with Japanese government efforts to support infrastructure system exports, and is expected to contribute to the economic development of Uzbekistan.

Uzkimyosanoat manages a number of companies, including 14 chemical enterprises; 13 regional distribution and logistics companies; 2 freight forwarding companies, a brokerage company and 2 research and design institutes. The total number of employees exceeds 48,000.

The products manufactured by them include mineral fertilizers; inorganic products; and organic chemistry, acids, synthetic fibers, polymeric materials and household goods. Uzkimyosanoat is the only company in the region which produces all 3 types of mineral fertilizers "N"-

.nitrogen, "P"-phosphorus and "K'-potassium. Currently Uzkimyosanoat started implementation of several big projects aimed for diversification and production of high value added products, such as automobile tires, conveyer belts, polyvinylchloride (PVC), caustic soda, methanol, NPK fertilizers and others. Navoiyazat JSC locates in Navoiy and manufactures more than 60 kinds of products, including fertilizers, chemicals, polymers, and acids.

Since the delivery of its first fertilizer plant in 1958, MHI has completed numerous such plants around the world. In recent years, the company has also received orders for several large-scale fertilizer plants in succession, and is currently carrying out their construction. It is MHI's track record of success in fertilizer plant development, coupled with the broad range of collaborative relationships that MC has cultivated in Uzbekistan in environmental and infrastructure-related fields since the nation's independence that led to the successful conclusion of this latest agreement.

Going forward, MHI and MC will further strengthen their marketing activities to secure successive orders for synthesis gas and petrochemical plant projects, and enhance their presence in the fields of fertilizer production and fertilizer plant development.