PetroVietnam unit signs $237 mln fertilizer exspanansion deal

PetroVietnam Fertilizer and Chemicals Corp, a subsidiary of PetroVietnam group, said it has awarded a US$237 million expansion contract to a consortium including Technip and Thyssenkrupp Industrial Solutions.

Under the deal signed by the Ho Chi Minh City-based fertilizer maker on Sunday, its annual output of ammonia used for making fertilizer will jump by 20 percent to 540,000 tonnes in 2017, it said in a statement.

The consortium also includes Petrovietnam Technical Services Corp.

The extra ammonia will be used in a new unit to be built at PetroVietnam"s Phu My Fertilizer Plant complex to produce 250,000 tonnes of NPK fertiliser a year from the second quarter of 2017, the statement said.

It said Vietnam now needs around 4 million tonnes of NPK fertilizer – comprising nitrogen, phosphorus and potassium and used for assisting plants – with domestic supply now meeting just 10 percent of the demand.

PetroVietnam Fertilizer and Chemicals Corp will invest 30 percent of the $237 million investment and secure remaining funds from loans, the firm said.

The new fertilizer plant will be built at the same Phu My urea plant site in the southern province of Ba Ria-Vung Tau.

Shares of PetroVietnam Fertilizer and Chemicals Corp, one of Vietnam"s 20 largest listed firms by market value, were up 1 percent at 29,400 dong ($1.35) at 0217 GMT on Monday, having gained around 3 percent from its year-low of 28,500 dong hit on April 8. ($1=21,780 dong)

PetroVietnam unit signs $237 mln fertilizer exspanansion deal

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