Perdaman Chemicals and Fertilisers Pty Ltd has announced the award of a AUS$90 million contract to Hexion Australia Pty Ltd, a Dardanup-based manufacturer, for the local production of UF-80, a key coating material used in the manufacture of urea granules, for Perdaman’s Project Ceres urea plant.
The agreement marks a historic milestone for Western Australia’s downstream manufacturing sector, as the production of UF-80, which is typically undertaken in the Middle East and other international locations, will now be fully executed by an Australian manufacturer using local materials.
The contract underscores Perdaman’s commitment to supporting Australian manufacturing and building resilient local supply chains. By partnering with Hexion Australia, Perdaman is ensuring that essential materials for Project Ceres are produced locally, creating jobs and driving investment into Western Australia’s industrial sector.
UF-80, composed of formaldehyde, urea, water, and volatiles, is used to coat urea granules, improving their strength, durability, and handling characteristics. Under this agreement, Hexion Australia will produce and supply 16 000 tpy of UF-80 to Perdaman’s world scale Project Ceres urea facility.
Perdaman Chairman Vikas Rambal said he is proud to mark a milestone that he believes is a historic event for both companies and for Western Australia. “By awarding this contract on a fully commercial basis to a local manufacturer, we’re demonstrating confidence in the capability, innovation, and competitiveness of Australian industry. This partnership highlights our commitment to building and supporting downstream manufacturing within Western Australia through Project Ceres.”
Hexion Australia’s Dardanup facility, located just over 10 km from the regional hub of Bunbury in the South West region of Western Australia, has long supported industrial clients across Australia and will now expand its operations to meet the new production requirements for UF-80. The partnership not only strengthens local supply chains but also supports regional jobs and skill development in the South West region of Western Australia.
Hexion Australia will play a key role in the landmark Project Ceres Urea Plant, a development set to strengthen the Australian economy by boosting domestic manufacturing capability and supporting long-term growth in agriculture and regional industries. Under a new long-term supply agreement with Perdaman, Hexion Australia will deliver advanced resin systems backed by global expertise and strong local manufacturing capabilities, supporting the plant’s performance, reliability, and long-term success. This partnership reflects Hexion’s ongoing commitment to supporting critical infrastructure, driving innovation, and enabling sustainable economic development across Australia.
This collaboration also reinforces Perdaman’s commitment to supporting local manufacturing, innovation, and value-adding within Australia’s downstream industries, setting a new benchmark for domestic participation in projects of global significance, such as Project Ceres.