The Forge Group has won the contract to build the Burrup technical ammonium nitrate production facility near Karratha.
The $70 million contract was awarded by Tecnicas Reunidas SA.
Work is scheduled to begin in September, with completion slated for May next year.
Forge's scope includes structural, mechanical, electrical and instrumentation installation.
David Simpson, Forge's managing director said the company was pleased to receive the contract.
It will employ a workforce of around 230 at Burrup during construction.
Tecnicas Reunidas SA is not the only company looking to build TAN plants in the region.
Late last year Orica formed a joint venture with Apache and Yara to build an ammonium nitrate plant on the Burrup peninsula.
Around the same time, fellow explosives manufacturer Incitec Pivot nixed its plans to build an ammonium plant in Dampier, although it did confirm it was still moving ahead on its plans to build an emulsion plant at Port Hedland.