Toyo Engineering is building what would be one of the world’s largest fertilizer plants in India, as the country moves to boost its self-sufficiency in the material to stabilize agricultural output for continued economic growth.
The Japanese company won a roughly 70 billion yen ($626 million) turnkey contract from Chambal Fertilizers and Chemicals for a new plant in the northern state of Rajasthan. The facility will have a daily capacity of 4,000 tons of urea, a key agricultural fertilizer, and could come online as early as 2019.
This will be the first time a large plant is constructed in 20 years. Toyo Engineering’s plant would increase India’s output capacity of urea by about 7%. India is pushing fertilizer makers to boost production and competitiveness and the government hopes to cut back its subsidy scheme as well.
Toyo Engineering has patented technology for urea production. It entered India in 1963 and has built 14 fertilizer plants in the country.