South Korean builder Daewoo Engineering & Construction on Monday announced plans for its first foray into Central Asia, having secured a 1.08 trillion won ($790 million) contract with Turkmenhimiya, Turkmenistan’s state-owned chemical company, for the construction of a mineral fertilizer plant.

The project, located in the country's second-largest city, Turkmenabat, involves the construction of facilities with a total annual production capacity of 350,000 tons of phosphate fertilizers and 100,000 tons of ammonium sulfate. According to the company, construction is expected to be completed within 37 months from the start date.

Daewoo E&C was selected as the winning bidder for the mineral fertilizer plant project last October, and the final contract builds upon a framework agreement signed in Seoul this April.

“This project marks our inaugural venture in Turkmenistan,” said Daewoo E&C CEO Kim Bo-hyun during the signing ceremony held Saturday at the Chamber of Commerce and Industry of Turkmenistan in Ashgabat. “With our company’s comprehensive expertise and resources, we are committed to delivering a world-class fertilizer plant of the highest caliber.”

This landmark deal is poised to amplify Daewoo E&C’s presence in Turkmenistan, an emerging market rich in natural resources and growth potential.

The company has outlined long-term plans to pursue additional contracts in Turkmenistan’s petrochemical and fertilizer sectors, while exploring new opportunities in infrastructure, new city development and the green energy sector.

“Drawing on our successful delivery of large-scale fertilizer plants in Nigeria, Algeria and Morocco, we are confident in showcasing our technological prowess in Turkmenistan,” a Daewoo E&C official said. “This year, we also aim to bolster our position as a global construction leader by securing additional contracts in Iraq, Nigeria and Libya.”

In a move to fortify its global operations, Daewoo E&C has been actively pursuing international deals under the leadership of Chair Jung Won-ju.

The company, aiming to increase the share of overseas orders to 31 percent, has set its target for new international contracts this year at 4.4 trillion won -- seven times last year’s total of 611.8 billion won.

Yet, while Daewoo E&C is making strides abroad with projects like the Kien Giang New City development in Vietnam and an LNG project in Mozambique, its prospects of joining a landmark $18 billion nuclear power plant project in the Czech Republic hang in the balance.

The project, led by Korea Hydro & Nuclear Power and including Daewoo E&C as part of the consortium, faces renewed headwinds after French energy company EDF filed a legal challenge in early May.

By No Kyung-min (minmin@heraldcorp.com)