South Korean firm Daewoo Engineering & Construction (E&C) has secured a tender to construct a fertilizer plant in Turkmenistan, with the project expected to cost approximately KRW 1 trillion ($730mn). This initiative marks a substantial investment aimed at bolstering the country’s agricultural sector, according to the Times of Central Asia.

The new facility will be situated in Turkmenabat, located 450 kilometers east of Ashgabat. Upon completion, it will have an annual production capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, along with additional auxiliary facilities. Final details regarding the contract’s value and implementation timeline will be released after the main contract is finalized.

Daewoo E&C views this project as a vital step in enhancing its footprint in Central Asia, particularly within the petrochemical and agricultural sectors, as well as in infrastructure and urban development. The company has expressed its commitment to incorporating environmentally friendly technological solutions to foster further collaboration with Turkmenistan.

The successful bid for this tender was bolstered by support from the South Korean government, notably during President Yun Seok Yeol’s official visit to Turkmenistan in June. Daewoo E&C Chairman Jeong Won-ju had previously met with Gurbanguly Berdimuhamedov, Chairman of the People’s Council of Turkmenistan, during his visit to South Korea in November 2022. Their discussions culminated in a memorandum of understanding aimed at fostering close cooperation, further solidified by Jeong’s three visits to Turkmenistan.

Daewoo E&C aims to establish itself as a leader in the global engineering, procurement, and construction (EPC) market. A company representative stated, “We strive to participate in projects that contribute to a sustainable future.”

Turkmenistan is actively pursuing multiple large-scale projects in collaboration with South Korean firms. Hyundai Engineering has partnered with state-owned Turkmengas to expand the Galkynysh gas field, which includes the construction of a fourth gas desulfurization facility, marking a historic milestone for the nation. Furthermore, South Korean companies are also engaged in developing an oil refinery in Kiyanly and are exploring initiatives to create “smart cities” within Turkmenistan.