TEC was Awarded Contract for Large-scale Fertilizer Plant Project in Indonesia

Toyo Engineering Corporation (TEC, President Toshihiko Hirose), with the cooperation of Mitsui & Co., Ltd., has been awarded a contract for construction of a large fertilizer plant from P.T. Pupuk Kujang, Indonesia's national fertilizer company.

This plant is to be constructed in Cikampek, West Java (about 50 km east of Jakarta), including 1,000t/d of ammonia, 1,725t/d of urea, and the utility facilities. TEC's scope of work includes granting of process licenses, design, procurement of equipment and materials, and construction on a turnkey basis, and the contract is worth about 30 billion Yen. Regarding the license technology, the ammonia plant will use Kellogg Brown & Root Inc. (USA) technology employing the aMDEA(R) acid gas removal process of BASF AG (Germany). For the urea plant, it is intended to use technology jointly developed by TEC and P.T. Pupuk Sriwidjaja (Pusri) of Indonesia.

In 1971, TEC was awarded a contract for the construction of Indonesia's first fertilizer plant in Palembang, the southeast of Sumatra Island from P.T. Pupuk Sriwidjaja (Pusri) and this plant was completed in 1974. Starting with this project, TEC had built 10 fertilizer plants in Indonesia. TEC is now constructing the second fertilizer plant for P.T. Pupuk Iskandar Muda on Sumatra Island. Over the past 30 years, TEC has built many fertilizer plants for Indonesia and implemented technology transfer. In addition, TEC has also engaged in joint development of urea production technology with P.T. Pupuk Sriwidjaja (Pusri), which is national fertilizer holding company, and this technology has also been jointly exported to third countries. This jointly developed technology will be employed in this project.

In December 1998, P.T. Pupuk Kujang had decided to award the contract for implementation of this project to TEC. However, due to the subsequent economic confusion in Indonesia, the contract was frozen. In its efforts to recover from the economic crisis, the Indonesian Government has positioned the construction of fertilizer plants to ensure food supplies as a vital national project, and this has led to the implementation of the large-scale plant project and the awarding of this contract to TEC.