OCP SA is to launch a joint venture company in Romania in partnership with the UAE’s Al Dahra Holding LLC that aims to tap demand for fertilizer in Central and Eastern Europe, according to a Bloomberg report, citing Morocco’s Official Gazette.
Morocco’s government signed off on the investment on Jan 16.
OCP and Al Dahra, an Abu Dhabi-based multinational agribusiness company, each will contribute an equal share in the new firm’s $5 million capital and each will hold a 50 percent stake, according to Morocco World News.
The new company, set to be named South East European Fertilizer Co. (SEEFCO), aims to extend the Moroccan group’s activities to Romania, but also will use the country as a hub to expand into Central Europe and Eastern Europe.
By collaborating with Al Dahra, the investment costs for OCP will be significantly lower, and the Moroccan group will also benefit from the UAE’s company’s business book, according to the Moroccan news report.