Indorama clinches financing package for $1.2bn Nigeria ferts plant

18 February 2013 17:35  [Source: ICIS news]

LONDON (ICIS)--Indorama has agreed a financing package to construct a $1.2bn (€900m) urea fertilizer plant in Port Harcourt, Nigeria, the Singapore-headquartered petrochemicals giant said on Monday.

Being undertaken by Indorama Corporation alongside Indorama Eleme Petrochemicals – a Port Harcourt-based polyolefins production subsidiary - the facility will produce over 4,000 tonnes/day of granulated urea, enough to singlehandedly meet Nigeria’s entire domestic demand for the material.

Products from the facility are also to be exported to North America and Latin America, Indorama added. Financing for the project is made up of $800m in debt and $400m in equity, with IFC, Stanbic and Standard Chartered as the lead lenders.

The complex will also include a 2,300 tonne/day ammonia plant, a urea granulation plant, and a port and gas pipeline.

Indorama Corporation managing director Amit Lohia said: “We continue to see significant growth prospects in Africa and Middle East.  After investing more than $500m over the past several years, Indorama is now setting up the world's largest urea plant at its petrochemical complex in Nigeria.

“With a rich pipeline of projects, Indorama is aiming to create Africa's largest petrochemical hub in Nigeria,” he added.

African industrialist Alhaji Dangote is also working on a large fertilizer production complex in the country. Based in Edo State, the Nigerian naira (N) 300bn ($1.9bn, €1.4bn) facility will have a forecast output of 7,700 tonnes/day of granulated urea and 2,200 tonnes/day of ammonia. The facility is expected to start production in 2015/16.

($1 = €0.75, $1 = N157.31, €1 = N209.94)

By: Tom Brown
+44 208 652 3214

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