Eurochem has signed a memorandum of intent (MOI) with Italian engineering firm Marie Tecnimont to develop a combined urea and ammonia plant "subject to further investment plan approval".

The agreement will see Marie Tecnimont carry out preliminary engineering and site surveying work at a brownfield site next to Eurochem's existing production facilities.

Marie Tecnimont said the plant would cost around €1 billion and boast capacity of about 3,000 tonnes of ammonia and 4,000t of urea per day, once fully ramped up.

The Swiss-headquartered company opened a US$1 billion, 1 million tonnes per year ammonia plant at Kingisepp in June.

"We are pleased to take the next step toward considering building this world scale plant, with Maire Tecnimont, a company that we have worked with closely for many years. Expansion of production facilities is a strategic goal for us and part of the next chapter in our growth story," Eurochem's CEO Petter Ostbo said in a statement.

Ostbo, who took over as CEO in June, told Mining Journal in September that he wanted Eurochem to become the world's largest fertiliser producer.