EuroChem Group AG, Maire Tecnimont and SACE jointly announced the signing of a Memorandum of Understanding (“MoU”) in relation to the construction of five ammonia-urea plants to be commissioned in Russia, the United States and Kazakhstan over the next 10 years.
According to the MoU, EuroChem will first invite Maire Tecnimont to submit its proposal to undertake engineering, procurement and construction services for the Projects, while SACE will evaluate issuance of credit insurance policies in connection with the Project.
In Russia, EuroChem and Maire Tecnimont will work together on three Projects: an ammonia-urea facility in Nevinnomyssk and an ammonia plant in Kingisepp, the latter including an additional Project to integrate urea production. Maire Tecnimont has already completed front-end engineering design for the Nevinnomyssk facility and the Kingisepp ammonia plant.
In addition, the companies will cooperate on two other ammonia-urea Projects, one in the state of Louisiana, US, and the other near Zhanatas, Kazakhstan.
The Projects will provide EuroChem with an additional five million tonnes of ammonia and 7.5 million tonnes of urea capacity per annum.
The MoU was signed by EuroChem CEO Dmitry Strezhnev, Maire Tecnimont Russia and Caspian Region Senior VP Gianni Bardazzi and SACE Managing Director, Head of Export Credit Teresa Saponara, in the presence of EuroChem co-founder Andrey Melnichenko, Maire Tecnimont founder and Chairman Fabrizio Di Amato and SACE Chairman Giovanni Castellaneta. The ceremony was also attended by, amongst others, Federica Guidi, Minister of Economic Development of Italy, Luca Lotti, State Secretary of the Italian Prime Minister’s Office, H.E. Sergey Razov, Ambassador of the Russian Federation to Italy, and H.E. Cesare Maria Ragaglini, Italian Ambassador to Russia.
Dmitry Strezhnev, EuroChem’s CEO, commented: “We are pleased to sign this landmark Memorandum of Understanding with Maire Tecnimont and SACE covering the construction of five new ammonia-urea facilities in three countries over the next 10 years. This is another milestone in the execution of our strategy which will enable EuroChem to further solidify its position as a leading global agrochemical company. Maire Tecnimont and SACE are highly regarded and experienced companies and we look forward to working together on the development of these large-scale projects.”
Fabrizio Di Amato, Maire Tecnimont Chairman, added: “With this prestigious signing our Group further reinforces its relationship with EuroChem, a leading global player in the fertilizers industry. This Memorandum of Understanding will enable both Groups to unlock their potential and jointly pursue mutually beneficial business initiatives on a global scale.”
Giovanni Castellaneta, SACE Chairman, declared: “This Memorandum of Understanding confirms our well-established partnership with Maire Tecnimont, an excellence of Italian technology worldwide, and will enable us to build up a profitable long-term alliance with EuroChem in order to support Italian industrial groups and SMEs involved in major international projects in high potential markets”.
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 accounts for 10% of the Italian fertilizer market in 2014. 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, Lithuania, China and Russia and employs more than 22,000 employees globally.
Maire Tecnimont S.p.A.
Maire Tecnimont S.p.A. is a company listed with the Milan stock exchange. It heads an industrial group (the Maire Tecnimont Group) that leads the international Engineering & Construction (E&C), Technology & Licensing and Energy Business Development & Ventures markets, with specific competences in plants, particularly in the hydrocarbons segment (Oil & Gas, Petrochemicals and Fertilisers), as well as in Power Generation and Infrastructures. The Maire Tecnimont Group operates in approximately 30 different countries, numbering around 45 operative companies and a workforce of about 4,300 employees, of whom over half work abroad.
SACE offers export credit, credit assurance, foreign investment protection services, financial guarantees, sureties and factoring. With operations worth €74 billion assured in 189 countries, SACE supports the competitiveness of Italian and foreign businesses, guaranteeing more stable cash flows and transforming enterprise insolvency risks into development opportunities (www.sace.it)