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4-Traders Homepage  >  Equities  >  KOREA EXCHANGE  >  Samsung Engineering Co Ltd    028050   KR7028050003

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Samsung Engineering : SOCAR’s carbamide plant to become profitable by 2026

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04/13/2016 | 11:43am CEST

In quarter 1, 2018 South Korean company Samsung Engineering company plans to complete construction of the carbamide plant (SOCAR's division) in Sumgait, said Noh Eichul, representative of the company, at the event "State Support to Industrial Development" organized by the Azerbaijan Ministry of Economy yesterday.

"At present 66% of all the works have been done. 99% of the project works, 84% of the logistics work and 13% of the construction works have been done. The mechanical works will be completed in quarter 4, 2017. The plant is planned to be launched in quarter 1, 2018," he said.

He said 600 people are involved in the project and 2,000 people will be involved in the project on the peak of construction.

Hayal Jafarov, Director of the carbamide plant, told journalists that the plant will become profitable 7-8 years after its launching.

"According to our forecasts, maximum annual demand of Azerbaijan in carbamide will total 150,000-200,000 tons with the plant productivity 600,000-650,000 tons," Jafarov explained.

He said the main market of the plant, to which carbamide will be delivered, will be Turkey. Azerbaijani carbamide will be delivered to the neighboring country by the Baku-Tbilisi-Kars railway. At present Turkey imports about 1.5-1.8 million tons of carbamide a year. At present carbamide is exported to Turkey from Ukraine and Russia as well as Near East.

General Director of the plant said that talks with the Korean Ex-Im Bank concerning borrowing a long-term credit against security of the state will start at the end of April – early May. Ex-Im Bank's representatives are expected to visit Azerbaijan. "The process will most likely take about 3-4 months," Jafarov said.

Cost of the contract on engineering, deliveries and construction signed with Samsung Engineering is 498 million Euro. The initial amount of Ex-Im Bank credit is 150 million Euro. Considering taxes, construction and infrastructure works (gas and water pipelines,) approximate cost of the project is 910-920 million Euro. About 200 million Euro from this amount of deducted for taxes.

By present about 320-330 million Euro has been already invested into the project, including 110 million Euro from the Korean Ex-Im Bank credit.

* Construction of the carbamide plant started on February 18, 2014. The area of 24 hectares was allocated for construction.

The plant will include three production sites: ammonium production (1,200 tons a day); carbamide production (600,000-650,000 tons a year) and production of carbamide granules.—0—

(c) 2016 Turan News Agency. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

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