Indorama Anyang urea expansion has reached a major financing milestone after Anyang Indorama Gases Co., Ltd., a wholly owned subsidiary of Indorama Corp., secured an RMB 2.4 billion (around US$358 million) long-term loan facility from a consortium of five banks in China.
The financing will support Phase II of Indorama’s fertilizer capacity expansion project in Anyang City, Henan Province, China. The brownfield expansion follows Indorama’s acquisition of the Anyang nitrogen fertilizer business earlier this year.
Indorama to Double Urea Capacity by 2029
The expansion project is expected to significantly increase Indorama’s fertilizer production capacity in China. The company plans to double its urea capacity, starting from syngas and ammonia production, to approximately 2 million tonnes per annum by 2029.
The project is also expected to improve energy efficiency across the Anyang site while strengthening the reliability of domestic fertilizer supplies.
The investment could support China’s fertilizer supply chain and contribute to food security by increasing local production capacity and improving production efficiency.
Five Banks Provide $358 Million Financing
The RMB 2.4 billion financing facility was provided by five banks:
- OCBC Bank Limited, Singapore
- Bank of China Limited, Beijing
- Bank of Communications Co., Ltd., Shanghai
- Bangkok Bank (China) Company Limited, Shanghai
- China CITIC Bank Co., Ltd., Beijing
OCBC Bank acted as the Coordinator and Facility Agent, while Sumitomo Mitsui Banking Corporation (China) Limited acted as the Security Agent.
The loan will partially finance the development and construction of the Phase II expansion project.
Indorama Strengthens Fertilizer Presence in China
According to Indorama Group Vice Chairman Amit Lohia, the financing represents an important milestone in the company’s global growth strategy.
He said the transaction reflects the confidence of international and Chinese financial institutions in Indorama and strengthens the company’s fertilizer platform in one of the world’s major markets.
Indorama Country Head (China) Chai Wei Joo said the financing would support the company’s fertilizer capacity expansion in Henan Province and strengthen its contribution to China’s industrial development and food security.
Project to Focus on Efficiency and Domestic Supply
The Anyang project is part of Indorama’s broader strategy to develop competitive and more efficient fertilizer production capacity.
By expanding urea production to around 2 million tonnes per year by 2029, the project is expected to increase the availability of domestically produced fertilizer while improving energy efficiency at the site.
The brownfield nature of the expansion also allows Indorama to build on its existing fertilizer infrastructure and operations in Anyang.
Banking Consortium Supports Indorama Expansion
The participating banks highlighted the project’s potential contribution to fertilizer production, domestic supply and industrial development in Henan Province.
OCBC said the financing builds on its long-standing relationship with Indorama, while Bank of China, Bank of Communications and China CITIC Bank highlighted their plans to support Indorama’s growth in China.
Bangkok Bank also noted its long-term relationship with Indorama and its continued support for the group’s regional and global expansion.
Indorama Anyang Expansion: Key Details
| Parameter | Details |
|---|---|
| Company | Anyang Indorama Gases Co., Ltd. |
| Parent Company | Indorama Corp. |
| Location | Anyang City, Henan Province, China |
| Project | Phase II fertilizer capacity expansion |
| Financing | RMB 2.4 billion |
| Approx. USD value | US$358 million |
| Current focus | Nitrogen fertilizer/urea |
| Target urea capacity | Approx. 2 million tonnes per annum |
| Target year | 2029 |
| Project type | Brownfield expansion |
| Financing purpose | Development and construction |
Outlook for China’s Fertilizer Capacity
The Indorama Anyang urea expansion represents a significant investment in nitrogen fertilizer capacity in Henan Province. Once completed, the project is expected to increase urea production, improve energy efficiency and strengthen the reliability of domestic fertilizer supply.
For Indorama, the project also marks another step in expanding its fertilizer business in China following the acquisition of the Anyang nitrogen fertilizer business.
