The PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo), along with representatives from the Iksan city government in Jeollabuk province, South Korea, and the Aton Industry Company in South Korea, recently signed an MoU regarding the supply of urea.

Mr. Dao Van Ngoc, Deputy President and CEO in charge of the Executive Board at PVFCCo, believes that the signing of the MoU is an opportunity to promote business cooperation between the parties. PVFCCo commits to prioritizing the supply of products that meet the volume and quality requirements of its partners. He hopes that PVFCCo and its South Korean partners will efficiently and sustainably cooperate in the long term. Initially, PVFCCo plans to supply 1,500 tons of urea a month to Aton and the city of Iksan for urea production.

Mr. Jeon Heon Yool, Mayor of Iksan, and Mr. Kim Gi-won, Chairman of the Aton Company, expressed their gratitude to PVFCCo for committing to supply urea to Iksan and Aton. This will help the city and the company have a stable urea supply in the long term, reducing concerns among 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 in southern Ba Ria-Vung Tau province, at the invitation of PVFCCo. South Korea greatly appreciates PVFCCo’s infrastructure and production capacity, expressing confidence that the cooperation between the two sides will achieve the desired results.

According to Mr. Ngoc, after 20 years of operations, PVFCCo’s Phu My Urea Plant has supplied over 15 million tons of urea to the market, with a significant amount going to South Korea. Every year, it exports 100-200,000 tons of urea to global markets. Since last November, it has signed contracts to export about 55,000 tons to the South Korean market for use in the production of diesel engine exhaust treatment solutions. A shortage of diesel engine exhaust treatment solutions (urea solutions) has shaken South Korea since 2021. Of the 10 million diesel-powered vehicles in the country, around 2 million are trucks using urea solutions. Therefore, a shortage of urea supply will lead to many vehicles not being driven. Such a shortage also affects various other industries.