Samsung E&A Wins KRW 4.7 Trillion Fertilizer Plant Contract, Already Surpassing Annual Target

[Financial News] Samsung E&A won a contract on the 11th for a large-scale fertilizer plant project in Saudi Arabia. The project is worth $3.5 billion, or KRW 4.7 trillion.
Samsung E&A announced that it had signed an EPC (engineering, procurement and construction) contract for the SAN-7 Project with SABIC Agri-Nutrients that day. Samsung E&A will independently carry out the EPC work for the fertilizer plant, which is scheduled for completion in 2030.
The plant will be built in Jubail Industrial City in eastern Saudi Arabia. It will use natural gas to produce 3,500 tons of ammonia per day and then manufacture 7,700 tons of urea fertilizer from the ammonia. All of the urea fertilizer will be exported.
Samsung E&A emphasized that the plant will include a post-combustion carbon-capture system (PCCC). The system will use CO2 generated during ammonia production to synthesize urea fertilizer. Samsung E&A is also carrying out a low-carbon ammonia project in the United States.
The contract-signing ceremony was held on the 9th local time at SABIC's headquarters in Jubail, Saudi Arabia. Senior executives in attendance included Samsung E&A President Hong Namkoong, SABIC President Faisal Mohammed Alfaqeer, SABIC Agri-Nutrients Chairman Abdulrahman Al-Faqi, and SABIC Agri-Nutrients President Fahad Misfer Al-Battar.
With this award under President Hong Namkoong, Samsung E&A has already exceeded its annual order target of KRW 12 trillion. The company had secured KRW 7.6 trillion in new orders during the first half of the year before winning this KRW 4.7 trillion fertilizer plant project. If this trend continues, it is highly likely to set a new record for annual orders.
Samsung E&A is currently bidding on several fertilizer and gas projects in Middle Eastern countries, including Saudi Arabia and Qatar. Since entering Saudi Arabia for the first time in 2003, it has carried out more than 30 projects there. Its strong position in the market, reinforced by winning the Fadhili Project in 2024—the company's largest project at $6 billion, or approximately KRW 8 trillion—has raised expectations for additional orders.
Fertilizer projects such as this one are seeing continued investment as global food security concerns gain prominence. A Samsung E&A official said, "We will actively respond to growing global demand for fertilizer plants by successfully carrying out projects that bring together our technological capabilities and experience."
Against this backdrop, Samsung E&A's revenue is widely expected to continue rising. According to a report by Hanwha Investment & Securities, Samsung E&A's revenue this year is projected to reach KRW 1.0693 trillion, while operating profit is expected to exceed KRW 100 billion. Next year, revenue is forecast to surpass KRW 1.2 trillion and operating profit KRW 110 billion.
[email protected] Yoon-ho Kim Reporter