The necessity of building fertilizer and electricity factories was considered inevitable after the discovery of about 160 billion cubic meters of gas in the areas of Jawzjan province, considering the need for agriculture. For this reason, the preliminary survey and protocol agreement for these factories was signed between the government of Afghanistan and the Soviet Union in 1343 Khurshidi. The design of this factory was considered by the Kryofsky Institute (State Institute of Nitrogen Products) and the partial design of its technology by the Construction Institute of the city of Rostov, Soviet Union at that time in the area of 65 hectares of land. Its location was confirmed and determined according to the availability of water reserves in the southwest of Dehdadi district, next to the Balkh Sea, 18 kilometers west of Mazar-e-Sharif city.
In 1345, the foundation stone of the fertilizer factory was laid, and in 1346, the foundation stone of the electricity factory was laid. The construction period of these factories was completed after 9 years with the cost of 2.17 billion Afghanis, equivalent to 48 million US dollars, under the guidance of about 400 foreign specialists and the activity of about 3000 people of our compatriots. For the first time, the production of thermal electricity started in 1350 and the production of chemical fertilizer started in 1353.
This factory as the largest petrochemical institution producing urea chemical fertilizer for the growth of the country’s agriculture and the production of thermal electricity from which to rotate the factory’s production devices and also for the beneficial use of natural resources, job creation and finally in improving the country’s economic situation and competition in the region and the world, which has positive and valuable effects. According to the laws and regulations of the country, the products of these factories are offered in domestic markets and often abroad by national traders through the steps of the legal process. The basic raw materials of these products are (natural gas, water and air), which are obtained from within the country, and what affects the intrinsic value of the product is the acquisition of other raw materials such as: oils, parts, equipment, laboratory materials, catalysts, etc., which are often from External resources are provided.