Wedoany.com Report-Oct. 17, South Korea’s Daewoo Engineering & Construction (047040.KS) has started construction of a major mineral fertilizer plant in Turkmenistan, a project valued at approximately $780 million, a government official involved in the negotiations told on Thursday. The groundbreaking ceremony was attended by Turkmenistan’s President Serdar Berdymukhamedov, according to local television reports.

The new facility will be located in Turkmenabat, the country’s second-largest city, situated about 450 kilometers east of the capital, Ashgabat. Construction is expected to take three years. Once completed, the plant will have the capacity to produce 350,000 metric tons of phosphate fertilizers and 100,000 tons of ammonium sulfate annually.

Turkmenistan, a nation rich in natural gas resources, has been seeking to diversify its economy by developing industries that can produce higher-value-added products. While natural gas remains its primary export—most of which is supplied to China—the government has been working to expand downstream sectors such as petrochemicals and fertilizer manufacturing to strengthen industrial output and export potential.

Daewoo Engineering & Construction, one of South Korea’s leading infrastructure and industrial project developers, has a long history of working on large-scale international projects in energy, petrochemical, and construction sectors. The Turkmenistan fertilizer project marks another step in its overseas expansion strategy and underscores its growing engagement in Central Asia.

Officials said the facility is expected to play a key role in supporting Turkmenistan’s agricultural sector by reducing reliance on imported fertilizers and increasing domestic supply. In addition to meeting local demand, part of the plant’s production will likely be exported to neighboring countries, contributing to regional trade growth.

The project is also aligned with Turkmenistan’s broader national strategy to promote self-sufficiency in food and agricultural production while leveraging its abundant natural resources for industrial development. The government has been encouraging international cooperation and foreign investment in sectors that can enhance value creation and employment opportunities.

The new plant in Turkmenabat is expected to adopt modern production technologies designed to ensure efficiency, environmental compliance, and sustainable operation. By developing local processing industries linked to its gas resources, Turkmenistan aims to strengthen economic stability and reduce dependence on raw material exports.

Daewoo’s participation in this project highlights the ongoing collaboration between South Korea and Turkmenistan in infrastructure and industrial development. The construction is anticipated to generate employment during the building phase and support long-term economic growth in the Lebap region once operations begin.

Overall, the launch of the fertilizer plant project represents a major step in Turkmenistan’s industrial diversification efforts, combining international expertise with local resources to expand the country’s manufacturing base and enhance its role in regional agricultural supply chains.