Wedoany.com Report-Oct. 11, Perdaman Chemicals and Fertilisers Pty Ltd has signed a A$90 million contract with Hexion Australia Pty Ltd, a manufacturer based in Dardanup, Western Australia, to produce UF-80, a critical coating material for urea granules, for the Project Ceres urea plant. This agreement marks a significant step for local manufacturing in Western Australia’s industrial sector.

The contract enables Hexion Australia to produce UF-80, typically manufactured in regions like the Middle East, using local materials. UF-80, made from formaldehyde, urea, water, and volatiles, enhances the strength, durability, and handling of urea granules. Hexion Australia will supply 16,000 tonnes per year to support the operations of Perdaman’s large-scale Project Ceres facility.

This partnership strengthens local supply chains and supports economic growth by creating jobs and fostering investment in Western Australia. Hexion’s facility, located 10 km from Bunbury in the South West region, will expand its operations to meet the production demands, contributing to regional employment and skill development.

“By awarding this contract on a fully commercial basis to a local manufacturer, we’re demonstrating confidence in the capability, innovation, and competitiveness of Australian industry. This partnership highlights our commitment to building and supporting downstream manufacturing within Western Australia through Project Ceres,” said Vikas Rambal, Chairman of Perdaman.

The collaboration positions Hexion Australia as a key supplier for Project Ceres, a transformative development aimed at boosting Australia’s agricultural and industrial sectors. Under a long-term supply agreement, Hexion will provide advanced resin systems, leveraging global expertise and robust local production capabilities to ensure the plant’s efficiency and reliability.

The initiative underscores Perdaman’s focus on fostering domestic manufacturing and innovation. By sourcing UF-80 locally, Project Ceres reduces reliance on international suppliers, enhancing supply chain resilience and supporting sustainable economic development in Australia.

Hexion Australia’s role in this landmark project reinforces its commitment to supporting critical infrastructure and driving innovation. The Dardanup facility’s expanded operations will contribute to the region’s industrial growth while meeting the needs of a globally significant project.

This agreement sets a benchmark for local participation in major industrial projects, showcasing the potential of Australian manufacturing to compete on a global stage. Through this partnership, Perdaman and Hexion aim to deliver lasting economic benefits, supporting both the agricultural sector and the broader Western Australian economy.