SAMSUNG E&A has won a $3.5 billion Engineering, Procurement and Construction (EPC) contract from Saudi Arabia’s SABIC Agri-Nutrients Company for a major fertilizer plant, reinforcing the South Korean engineering giant’s foothold in one of its key overseas markets.

 

The company said that it had signed the contract for the SAN-7 Project, valued at KRW 4.7 trillion (about $3.5 billion). SAMSUNG E&A will carry out the EPC work exclusively, with completion targeted for 2030.

 

The signing ceremony took place Sept. 9 at SABIC’s headquarters in Jubail, Saudi Arabia, bringing together senior executives including SAMSUNG E&A President and CEO Hong Namkoong, SABIC President Faisal Mohammed Al-Faqeer, SABIC Agri-Nutrients Chairman Abdulrahman Al-Fageeh and President Fahad Misfer Al-Battar.

 

Hong Namkoong, President and CEO of SAMSUNG E&A, said, "This project involves a core product for a long-standing client and is being executed in Saudi Arabia, a key market for us," adding, "We plan to actively respond to the growing global demand for fertilizer plants by successfully delivering the project through the integration of our technical expertise and experience."

 

The new facility will be built in the Jubail Industrial Complex in eastern Saudi Arabia, a location where SAMSUNG E&A already has extensive project experience.

 

The plant will use natural gas to produce 3,500 metric tons of ammonia a day, which will then be converted into 7,700 metric tons of urea fertilizer daily. The entire urea output will be exported.

 

The project also incorporates a Post-Combustion Carbon Capture (PCCC) system. Carbon dioxide generated during ammonia production will be captured and used in urea synthesis, helping cut emissions while improving the plant’s economic efficiency.

 

The contract further strengthens SAMSUNG E&A’s position in Saudi Arabia, where it entered the market in 2003 and has since completed more than 30 projects. Its Saudi portfolio includes the $6 billion Fadhili project, secured in 2024 and described by the company as the largest project in its history.

 

SAMSUNG E&A’s experience in Jubail is expected to provide an execution advantage for SAN-7, with the company able to draw on existing infrastructure, resources and local project expertise.

 

The deal also deepens its relationship with SABIC, one of Saudi Arabia’s leading petrochemical companies. SABIC Agri-Nutrients, the project’s client, is a major Saudi fertilizer producer and a global player in the nitrogenous fertilizer market.

 

SAMSUNG E&A has worked with SABIC since 2003, delivering major projects involving products such as ethylene oxide/ethylene glycol (EO/EG) and polypropylene (PP). The company said its track record and ability to shorten construction schedules helped secure the SAN-7 award.

 

Fertilizer projects are expected to attract growing investment as rising global food demand, food-security concerns and vulnerabilities in international supply chains increase pressure for reliable fertilizer production.

 

SAMSUNG E&A plans to build on its ammonia and urea expertise while deploying technologies such as modularization and automation to improve project execution.

 

The latest award also extends the company’s recent run of overseas wins. SAMSUNG E&A secured a $2.4 billion overseas hydrocarbon project in February and a $790 million water-treatment project in the Middle East, underscoring its continued push to expand its international order book.

 

The company is also currently executing a low-carbon ammonia project in the United States, adding to its growing portfolio in the fertilizer and lower-carbon energy sectors.