MILAN Italy's Maire Tecnimont said on Monday it had signed a memorandum of understanding with Pakistan's Fatima Group Principals and Midwest Fertilizer Corporation to build a nitrogen fertilizer complex in the United States.
Under the contract that is yet to be finalised, Maire Tecnimont would oversee engineering, procurement and building of the fertilizer complex in Indiana. The project is expected to worth around $1.6 billion, Maire Tecnimont said.
Its shares were up 4.1 percent at 2.13 euros by 0711 GMT, outperforming a 0.2 percent fall in Milan's All-Share index.
Maire Tecnimont would book the project in its backlog after the signing of the deal, currently expected by September. The work is expected to be completed in the fourth quarter of 2017.
Chief Executive Pierroberto Folgiero said the United States was witnessing growing investments flows in downstream industries and a very stable market environment.
Fatima Group, an investor and operator of several industrial projects in fertilizers, textiles, mining and energy, has already secured $1.26 billion of tax-exempt financing under the United States Midwest Disaster Relief Program.
Midwest Fertilizer Corporation is part of the Fatima group and will develop the Indiana fertilizer project as a special purpose vehicle. New investors are expected to join later.
(Reporting by Francesca Landini; editing by Tom Pfeiffer)