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Belarus set to build new $1bn-worth nitrogen fertilizers plant

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Photo: Reuters

A new nitrogen fertilizers plant will be built in Belarus for $1 billion, while the existing Hrodna Azot chemical giant will undergo profound modernization. The upgrade will cost about $400 million. The enterprise itself will come up with some of the required sum. The decision was made on 10 May during a government conference gathered by President Lukashenk.

Three options of developing the production of nitrogen fertilizers in Belarus were put on the president's table: profound modernization of Hrodna Azot, the construction of a new nitrogen plant, and the implementation of both projects. After weighing all the pros and cons and thoroughly discussing possible risks Belarus President Aliaksandr Lukashenka decided in favor of the third option, reports BELTA.

The head of state noted at the meeting that the world's population is growing. Hence, more agricultural production and a greater demand for nitrogen fertilizers.

Lukashenka gave instructions to once again consider all the possible variants of implementing the project in detail. He said that prompt decisions were necessary yet prices should be a factor. “We are interested in the cost and the effectiveness of the project,” stressed the head of state. According to Ihar Lyashenka, Chairman of the Belarusian state petrochemical concern Belneftekhim, it will cost more than $1 billion to build a new nitrogen plant. Proceeds are expected to reach $335 million per annum. This is why the payback period will not be short.