Saipem to build an Ammonia plant for Haifa Group

11 January 2021

Haifa Group and Saipem have signed a contract worth over USD 200M for the building of a long-awaited ammonia plant at the Mishor Rotem site. The contract was signed during an online ceremony in the presence of Haifa Group CEO, Motti Levin, Haifa Group board member and project leader, Dr. Eli Abramov, and Saipem’s CEO, Stefano Cao, and Saipem’s COO Onshore E&C Division, Maurizio Coratella. 

Following an intensive and professional tender lasting two years, Saipem was selected among four candidates for the project after examining all the proposed solutions, technologies, and the bidder’s track record.

The facility is expected to be built with an investment exceeding USD 200M to produce around 100,000 tons of ammonia per year, and its construction will take around three years. Saipem's scope of work entails engineering, procurement, construction, and commissioning for the entire production facility.

The plant will provide a steady, safe, and continuous supply of ammonia, which is used as a vital material for the production of potassium nitrate fertilizer, Haifa Group's flagship product. The company expects to use most of the facility's production capacity when the rest will be offered to customers in Israel for the wide range of uses for ammonia.

The construction of the plant is another stage in the implementation of Haifa Group's expansion and investment plan to double the production capacity of the “Haifa Negev” plant at Mishor Rotem and following a decision of the Israeli Government. This move is expected to create hundreds of new jobs in the Negev and significantly expand the employment market in the region.