Sasol Nitro has awarded the engineering, procurement and construction management contract for its calcium ammonium nitrate (CAN) complex to SNC-Lavalin.
The 400,000tpa plant in Secunda, South Africa, is scheduled for completion in 2011.
This is the third contract the Canadian firm has been awarded following a concept study in 2008 and basic engineering in 2009.
SNC-Lavalin executive vice-president Jean Claude Pingat said the company had been selected on the high quality of its product, energy-efficient operations and the success of the previous projects.
CAN is a granulated fertiliser concentrate made by mixing ammonium nitrate and an appropriate dolomite.
SNC-Lavalin Europe vice-president of operations, industrial processes and power Georges Sontag said this was a significant achievement for the fertiliser division and for the company's presence in South Africa.
The process used to granulate CAN was also designed by SNC-Lavalin's fertiliser division in Brussels, Belgium.
The cost of all three projects is expected to be C$96m (US$93.3m).