Daewoo E&C Chairman Jung Won-ju (left) speaks with Gurbanguly Berdimuhamedow, chairman of the People's Council of Turkmenistan, during the Turkmen leader's visit to South Korea in November 2022. (Daewoo E&C)

South Korean builder Daewoo Engineering & Construction has been selected as the winning bidder for a mineral fertilizer plant project in Turkmenistan, valued at approximately 1 trillion won ($730 million), according to the company Monday.

The project involves the construction of a mineral fertilizer plant in Turkmenabat, 450 kilometers east of the capital Ashgabat. The plant will have an annual production capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, along with additional auxiliary facilities.

The company stated that the exact contract value and project duration would be disclosed once the main contract is finalized.

Through this project, Daewoo E&C aims to strengthen its foothold in Central Asia. The company is exploring further opportunities in the region, not only in the petrochemical and fertilizer sectors, but also in infrastructure and new city development projects, it said. Daewoo E&C also plans to propose various eco-friendly solutions to Turkmenistan to foster further collaboration.

The company attributed winning the bid to the backing of the South Korean government, including support during President Yoon Suk Yeol’s official visit to Turkmenistan in June.

Daewoo E&C also highlighted the role of Chairman Jung Won-ju, who met with Gurbanguly Berdimuhamedow, chairman of the People's Council of Turkmenistan, during the Turkmen leader's visit to South Korea in November 2022. At the meeting, the two parties signed a memorandum of understanding, agreeing to close cooperation. Since then, Jung has visited Turkmenistan three times to facilitate direct communication with the government, which the company said contributed to the successful bid.

"Daewoo E&C will continue to expand its overseas operations based on eco-friendly technology and innovation, playing a leading role in the global EPC (engineering, procurement and construction) market," a Daewoo E&C official said. "We are committed to participating in projects that contribute to a sustainable future."