FFC Signs Landmark Coal-to-Fertilizer Project Deal

FFC has partnered with a Chinese firm for Pakistan’s first coal-to-fertilizer project under CPEC 2.0, targeting long-term industrial and fertilizer security.

Pakistan’s leading fertilizer producer, Fauji Fertilizer Company Limited, has signed a Front-End Engineering Design (FEED) agreement with Chinese engineering firm Hualu Engineering and Technology Co. Ltd for what is being described as Pakistan’s first coal-to-fertilizer project under the China-Pakistan Economic Corridor (CPEC) 2.0 initiative. The agreement was signed in China on May 24, 2026, marking a major industrial collaboration between the two countries.

In a statement shared on social media, FFC  said, “With an investment of $1.12 billion, the project is expected to produce 717,000 tons of urea annually while utilizing approximately 2.1 million tons of indigenous coal each year.” The company noted that the project aims to strengthen fertilizer security, increase the use of local resources, and contribute to Pakistan’s industrial development.

FFC further stated that the plant is expected to begin operations by 2030-31 and described the initiative as part of its long-term commitment to innovation and economic sustainability. In another statement, the company said the project “reflects FFC’s  continued commitment to innovation, self-reliance, and sustainable economic progress for Pakistan.”

The agreement comes as Pakistan intensifies efforts to attract new Chinese investment under the second phase of CPEC. During Prime Minister Shehbaz Sharif’s recent visit to Beijing, both countries reaffirmed plans to deepen economic cooperation and accelerate high-quality CPEC development.

According to a joint statement issued after the visit, Pakistan and China agreed to promote “high-quality development” of CPEC while encouraging broader international participation in future projects. The latest FFC initiative is expected to become one of the flagship industrial ventures under the evolving CPEC 2.0 framework.