MOROCCO – OCP Group, a Moroccan state-owned fertilizer producer, has entered into an agreement with Koch Ag & Energy Solutions under which Koch will acquire a 50% interest in Jorf Fertilizers Company III (JFC III) from OCP, establishing a 50/50 JV.
JFC III owns and operates an integrated phosphate fertilizer production facility in Jorf Lasfar, Morocco, with the capacity to produce up to 1.1 million metric tons annually of phosphate-based fertilizers.
It is one component of the Jorf Fertilizer Complex, the world largest Phosphate fertilizer production platform.
Under the agreement, JFC III’s products will be marketed by OCP and Koch Fertilizer, LLC.
Additionally, the companies will collaborate on the supply of ammonia and sulfur to OCP and leverage their logistical capabilities for the shipment of fertilizers from Morocco.
“The venture builds on Koch’s long-standing relationship with OCP and a shared vision to expand phosphate offerings globally.
“We are excited to grow Koch Fertilizer from a predominately nitrogen producer and distributor by offering a larger suite of phosphate products to our customers.
“We look forward to collaborating with OCP and leveraging the unique capabilities of both companies,” said Scott McGinn, Koch Fertilizer executive vice president.
Koch Ag & Energy Solutions, LLC and its subsidiaries – Koch Fertilizer, Koch Agronomic Services, Koch Energy Services and Koch Methanol – are global providers of value-added solutions for the agriculture, energy and chemical markets.
“Our collaboration with Koch is now entering a new phase after more than a decade of commercial relationship.
“Koch is a key strategic partner with a shared vision on how to best serve farmers and agriculture. Through this transaction, we are happy to welcome another leading industrial player such as Koch to Morocco,” said Soufiyane El Kassi, Chief Growth Officer of OCP.
In its recent financial updates, OCP Group, made a turnover exceeding MAD 26.65 billion (US$2.79 billion) in the fourth quarter of 2021.
The number represents a substantial increase of MAD 14.49 billion (US$1.51 billion) compared to the same quarter in 2020.
OCP attributes the performance to the “favorable market conditions and sustained demand” across pivotal regions.
In 2021, OCP Group’s total turnover reached MAD 84.3 billion (US$8.83 billion), representing an increase of 50%.
The performance was mainly thanks to an increase in exported volumes of fertilizer and rock.
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