On January 23, 2024, at the headquarters of the PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo), PVFCCo, along with representatives from the Iksan city government (Jeollabuk province, South Korea), and Aton Industry Company (South Korea), signed a Memorandum of Understanding (MoU) regarding the supply of Urea.
Introducing PVFCCo, Mr. Dao Van Ngoc, Deputy President & CEO – in charge of the Executive Board, stated that after 20 years of operation, PVFCCo/Phu My Urea Plant has supplied over 15 million tons of urea to the market, with a significant amount supplied to the South Korean market. Every year, PVFCCo exports 100-200 thousand tons of urea to global markets. Just from November 2023 until now, PVFCCo has signed contracts to export about 55 thousand tons of urea to the South Korean market for use in the production of diesel engine exhaust treatment solutions. It is known that the shortage of diesel engine exhaust treatment solutions (urea solution) has shaken South Korea in 2021. Out of about 10 million diesel-powered vehicles in South Korea, around 2 million are trucks using urea solution. Therefore, a shortage of urea supply will lead to many vehicles ceasing operations. Additionally, the shortage of urea solutions affects various other industries.
Mr. Dao Van Ngoc believes that signing this Memorandum of Understanding is an opportunity to promote business cooperation between the parties.
The leadership of PVFCCo commits to prioritizing the supply of products that meet the volume and quality requirements of partners. He hopes that PVFCCo and South Korean partners will collaborate in the long term, efficiently and sustainably in the future. Initially, PVFCCo plans to supply 1,500 tons of urea per month to Aton and the city of Iksan for urea production.
Mr. Jeon Heon Yool – Mayor of Iksan city, and Mr. Kim Gi-won – Chairman of Aton Company, express their gratitude to PVFCCo for committing to supply urea to Iksan city and Aton Company. This helps the city and the company have a stable urea supply in the long term, reducing concerns for the city government and residents, especially in the context of global instability and increasing difficulties in the global supply of raw materials. At the same time, it contributes to the development of PVFCCo and Aton in the future.
The South Korean delegation also visited and learned about the production technology and products at the Phu My Urea Plant at the invitation of PVFCCo. South Korea highly appreciates the infrastructure and production capacity of PVFCCo, expressing confidence that the cooperation between the two sides will achieve the desired results.
It is noted that the parties will negotiate to sign the first contract as soon as possible. Below are some images:
