Incitec Pivot tamed its potential competitor

The Australian Incitec Pivot has signed a 20-year contract with Perdaman Chemicals and Fertilizers for the sale and purchase of carbamide from the chemical plant, which is being currently designed by the company. Under the terms of the contract, Perdaman Chemicals and Fertilizers will be obliged to ship to Incitec Pivot up to 2.3 million tons of granular carbamide per year.

Perdaman Chemicals and Fertilizers intends to begin the construction of the facility in the 1Q2022 with commissioning in the 4Q2025. The new plant will cost $4.5 billion.

However, the implementation of the contract depends on the receiving of financing required to Perdaman Chemicals and Fertilizers to build the plant.