The company behind a proposed $3.5 billion urea plant near Collie has appointed Korean company Samsung Engineering and Indonesian firm Inti Karya Persada Tehnik to build the facility.

Perdaman Industries, headed by Indian fertiliser magnate Vikas Rambal, said Samsung would be the lead contractor for all engineering, procurement and construction work on the plant, which comprised the gasification island, the product island and associated utilities

The plant will transform sub-bituminous coal into urea fertiliser using low emissions coal gasification technology.

It is expected to create 1500 jobs during its three-year construction phase and 200 permanent jobs once operating.

The plant will produce two million tonnes of urea a year and generate $850 million a year in export earnings.

Construction work is expected to begin in the middle of next year. The plant will be built in the new Shotts Industrial Park near Collie.