The Linde Group has formed a joint venture with chemical company JSC KuibyshevAzot to build and operate a large ammonia plant at the Togliatti site in Russia's Samara region, the companies announced on Wednesday.
The deal will involve a total investment volume of around €275 million. Both companies have an equal stake in the newly-formed venture, Linde Nitrogen Togliatti.
"We are proud to team up with our partner to support further expansion of the Togliatti industrial hub," said Professor Dr. Aldo Belloni, executive board member for Linde.
"This project not only strengthens our presence in Samara, but also our position as the leading gases and engineering company in the fast-growing Russian market," he added.
Linde's engineering division will construct the new plant, designed to deliver exceptional levels of energy efficiency, according to project officials.
The plant will have a production capacity of 1,340 tpd of ammonia. Construction work is scheduled for completion in 2016.
JSC KuibyshevAzot, one of the biggest chemical companies in Russia, plans to expand Togliatti production capacity for caprolactam -- a precursor of polyamide plastics -- and nitrogen fertilizers. It will need a rising stream of ammonia to support these growth plans.