OCP Group: Koch Ag & Energy Solutions plans to acquire a 50% stake in JFC III

Koch Ag & Energy Solutions (Koch) and OCP Group have signed an agreement, under which a subsidiary of Koch will be able to acquire a 50% stake in Jorf Fertilizers Company III (JFC III) from OCP Group, a world leader in the phosphate fertilizers market.

Once closed, the transaction will give rise to a Joint-Venture equally owned by OCP and Koch.

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. JFC III 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. In addition, the companies plan to collaborate for the supply of ammonia and sulfur to the OCP Group, and will rely on their logistics capacities for the export of fertilizers from Morocco.

For Scott McGinn, Executive Vice-President of Koch Fertilizer, “this agreement is the result of a long-standing relationship with the OCP Group and the same ambition to extend phosphate offers worldwide”.

“We are excited to grow Koch Fertilizer from being primarily a producer and marketer of nitrogen, by offering a wider range of phosphate products to our customers. We look forward to collaborating with OCP and building on the unique advantages of both companies,” he added.

For his part, Soufiyane El Kassi, Chief Growth Officer of OCP, underlined that the Group’s 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.

It should be noted that the transaction is subject to the usual conditions precedent.