India’s IFFCO to build 1.25m tonne/year urea plant in Canada

29 June 2012 15:36  [Source: ICIS news]

LONDON (ICIS)--The Indian Farmers Fertiliser Co-operative (IFFCO) will build a 1.25m tonne/year urea plant in Canada, said Us Awasthi, IFFCO’s managing director on Friday.

IFFCO will invest $800m ($640m) into the venture and is in the process of scouting for Canadian partners, Awasthi added.

He declined to name possible partners for the project, but said IFFCO would be the majority partner.

“We [IFFCO] are the major partners, and are open to partnering with the farmers and provinces of Canada. Our partners will represent a wide range of people,” Awasthi said.

IFFCO is in talks with Canadian provinces to finalise the location and expects to make a decision in the next month or two, he added.

The company plans to float a tender in the next two weeks for an engineering, procurement and construction (EPC) contract for the project and expects to receive environmental clearance in 18 months.

Abundant and less expensive supply of gas in North America is likely to encourage more Indian players to set up similar plants in the region, analysts said. IFFCO’s proposed plant will be a shale gas-based unit.

The project is likely to be completed in the next three years, according to media reports.

IFFCO already has three urea plants in India and a 2m tonne/year joint venture plant in Oman.

($1 = €0.80)

By: Deepika Thapliyal
+44 208 652 3214

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