Development of world-scale fertilizer complex to boost economy in Tanzania

Essen, 2015-02-02

A consortium led by the German company Ferrostaal Industrial Projects GmbH is going to exclusively develop a fertilizer complex in Tanzania together with the state-owned Tanzania Petroleum Development Corporation (TPDC). The project will strengthen the country`s value creation and is one of the largest investment projects in Tanzania. The fertilizer complex is one of the topics during German Federal President Joachim Gauck`s visit to Dar es Salaam, Tanzania, today.

Ferrostaal Industrial Projects GmbH, Germany, emerged as the winner of a tender process for the project development of the ferti-lizer complex in the United Republic of Tanzania, in a consortium with Haldor Topsoe A/S, Denmark, and the Pakistani industrial enterprise Fauji Fertilizer Company Ltd. As a “preferred bidder”, the consortium is currently in exclusive negotiations with Tanzania Petroleum Development Corporation to establish a joint venture and with gas suppliers regarding the supply of gas for the project. Fur-thermore this project is open to local participation, whereby the National Social Security Fund and Minjingu Mines have already shown interest.

Dr. James Mataragio, Managing Director of Tanzania Petroleum Development Corporation: “The conclusion of the fertilizer project is the step which has been awaited for a long time; it is now the right time for its execution in respect to gas utilization and boost to the agriculture sector as well as the Tanzania economy as a whole. TPDC strongly appreciates the efforts so far shown by Ferrostaal and consortium in achieving this goal. TPDC is committed to the formation of the joint venture and support to the consortium.”

Dr Klaus Lesker, Managing Director of Ferrostaal Industrial Projects GmbH: “By enabling the investment of more than one billion US dollar in the fertilizer complex, Tanzania is going to exploit its enormous gas reserves with great benefits to its economy and infrastructure.” The country has estimated gas reserves of around 50 trillion cubic feet (tcf) and more reserves are expected from untested prospects.

The fertilizer complex will be operational in 2019/2020, producing 1.3 million tonnes of fertilizer per year for both the local and international market. Agriculture in Tanzania will stand to benefit in particular. The sector makes up to one third of Tanzania’s gross domestic product, with more than 75 per cent of the population working in the agricultural sector. It is expected that an additional 5,000 direct and indirect jobs will be created during the construction and operating period.

About Ferrostaal Industrial Projects

Ferrostaal Industrial Projects is an international project developer and EPC service provider for the realisation of industrial plants in the wind energy sector as well as other selected project opportunities. The company additionally untertakes the planning, delivery, installation and maintenance of lighting solutions for sport and logistics. Ferrostaal Industrial Projects is a member of the Ferrostaal Group, a global technology-independent, manufacturer-independent and supplier-independent industrial services provider. Some 2,700 employees combine decades of industrial expertise with financing competence on behalf of the customers. Ferrostaal has own companies in around 40 countries.

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