Koch Ag & Energy Solutions (Koch) and OCP Group on Wednesday signed an agreement under which a Koch subsidiary may acquire a 50% stake in Jorf Fertilizers Company III (JFC III) from OCP Group, a world leader in the phosphate fertilizer market.
Once closed, the transaction will give rise to a Joint Venture equally owned by OCP and Koch, the two parties indicate in a press release, noting that the transaction is subject to the usual conditions precedent.
JFC III owns and operates an integrated phosphate fertilizer production unit in Jorf Lasfar (Morocco), with an annual production capacity of up to 1.1 million metric tons of phosphate fertilizer. It is part of the Jorf Lasfar industrial complex, the world’s largest platform for the production of phosphate fertilizers.
Production of JFC III will be marketed by OCP and Koch Fertilizer, LLC, the statement said, adding that the companies plan to collaborate on the supply of ammonia and sulfur to OCP Group, and will leverage their logistics capabilities to the export of fertilizers from Morocco.
“This agreement is the result of a long-standing relationship with the OCP Group and the same ambition to expand phosphate offers globally,” said Scott McGinn, Executive Vice President of Koch Fertilizer, quoted in the press release. , saying they are “delighted to grow Koch Fertilizer from being primarily a producer and distributor of nitrogen, by offering a wider range of phosphate products to our customers”.
“We look forward to working with OCP and building on the unique advantages of both companies,” added Mr. McGinn.
For his part, Soufiyane El Kassi, Chief Growth Officer of OCP, indicated that “our collaboration with Koch will take a new step after more than ten years of commercial relations”.
“Koch is a key strategic partner with whom we share the same vision that we serve farmers and agriculture. Through this transaction, we are happy to welcome another leading industrial player such as Koch to Morocco,” he said.