Perdaman strengthens local industry with $90 million UF-80 supply contract to Hexion Australia for Project Ceres

Wednesday, 8 October 2025

Perdaman Chemicals and Fertilisers Pty Ltd (“Perdaman”) acknowledges the Traditional Custodians of Murujuga land, namely the Ngarluma, Yindjibarndi, Yaburara, Mardudhunera and Wong-Goo-Tt-Oo peoples, and pays our respects to their Elders past, present, and emerging.

Perdaman Chemicals and Fertilisers Pty Ltd (Perdaman) is proud to announce the award of a A$90 million contract to Hexion Australia Pty Ltd (Hexion Australia), 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 tonnes of UF-80 per year 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 is proud to 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.

About Project Ceres

Project Ceres is Perdaman Chemicals and Fertilisers’ flagship urea manufacturing plant, set to become Australia’s largest, producing 2.3 million tonnes of urea per year. Located in Karratha’s Burrup Strategic Industrial Area, the USD $4.5 billion development supports national food security, reduces reliance on imported fertilisers, and is expected to create 2,000 construction jobs and 200 operational roles, alongside ongoing procurement of local goods and services.

The facility features a robust utility ecosystem, generating 101MW of onsite power through gas turbines, supplemented by 5MW from solar, ensuring reliable, self-sufficient energy for operations. Water requirements are met via the Water Corporation’s seawater pipeline and expanded supply network, while an approximately 3.5km closed conveyor transports urea to Pilbara Ports Authority for export, optimising logistics and efficiency.

About Perdaman

Perdaman is a private and family-owned multinational entity headquartered in Western Australia. We are active in diverse markets, including fertiliser urea & ammonia production, pharmaceuticals, destination retail, investment management, recruitment, immigration, translation and interpreting, international student services, and sustainable energy solutions. Perdaman is building a sustainable future by delivering excellence in business and creating positive outcomes for communities.

For more information, visit www.perdaman.com

About Hexion Australia

Hexion Australia Pty Ltd is a specialty chemicals company based in Dardanup West, Western Australia. The company is classified as a major hazard facility (MHF) and manufactures specialised products for industries such as wood, mining, construction, sanitation, and fire control.

Established in 1984, Hexion Australia Pty Ltd operates from its manufacturing facility located in Dardanup West but also occupies a Methanol storage facility on Bunbury Port. Hexion Australia is a 50/50 joint venture between Hexion Pty Ltd and Laminex Australia, with Laminex Australia being a key customer for specialty resins manufactured on site.

As part of the wider Hexion Pty Ltd, Hexion Australia Pty Ltd is part of a global network that is a global leader in the specialty chemicals sector. Hexion is committed to supporting clients with advanced materials that enhance product performance, durability, and safety.