Joint venture established to realise billion-dollar fertilizer-complex in Tanzania

Essen, 2015-10-28

TPDC, Ferrostaal, Haldor Topsoe and Fauji

The state-owned Tanzania Petroleum Development Corporation and a consortium led by the German company Ferrostaal Industrial Projects GmbH entered into a joint venture to realise a new world-scale fertilizer complex in Tanzania. The investment volume for the project will be more than one billion US dollar.

The petrochemical complex will be the largest German investment in Tanzania and the first fertilizer production in the country. It will be operational in 2020, producing 1.3 million tonnes of fertilizer per year. Located  in the southern region of Tanzania it will provide 5,000 direct and indirect jobs.
Dr. James Mataragio, Managing Director of the Tanzania Petroleum Development Cooperation: “For the economic development of Tanzania, especially for the agricultural sector, we expect a huge effect from the plant. It will increase the value creation in Tanzania significantly. Now, we are looking forward to taking the project to the next level.” Together with its local partners Tanzania`s National Social Security Fund, the largest public investment fund in the country providing social security protection in Tanzania, and Minjingu Mines & Fertiliser Ltd, a major producer and distributer of fertilizer for East, Central and  Southern Africa,  the joint venture will now accelerate negotiations relating to the gas supply for the project.

“This agreement marks a major step forward to boost fertilizer production in Tanzania. The joint venture underscores our commitment to Tanzania to turn this important project into reality. Combining the competence of facilitating investments with the world`s leading technologies is our key to success”, states Dr. Klaus Lesker,  Managing Director of Ferrostaal Industrial Projects GmbH, on behalf of the consortium of Ferrostaal with the Danish company Haldor Topsoe A/S and the Pakistani industrial enterprise Fauji Fertilizer Company Ltd.

Egon Kochanke, the German ambassador to Tanzania underlined: „The investment will be a milestone in the economic development of Tanzania. It will both strengthen Tanzania’s industrial base and its status as a new and attractive investment destination for Germany’s business champions.“

During a state visit of Germany`s Federal President Gauck in February the partners had already announced that the consortium led by Ferrostaal was the successful bidder for the development of the complex. This announcement followed a competitive tendering process.

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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