OCP Group SA, Casablanca, and Koch Ag & Energy Solution LLC, have signed an agreement under which a Koch affiliate will acquire a 50 percent interest in Jorf Lasfar Fertilizers Co. III (JCF III) from OCP. When closed, the transaction will establish a 50/50 joint venture, the companies said in a joint press statement on March 2.
JFC III owns and operates an integrated phosphate fertilizer production facility in Jorf Lasfar, Morocco, with initial capacity to produce 1.1 million mt/y of phosphate-based fertilizers.
Output from the plant will be marketed by OCP and Koch Fertilizers 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.
OCP and Koch have agreed not to disclose the financial value of the deal, an OCP spokesperson told Green Markets.
Koch Fertilizer Executive Vice President Scott McGinn said the company was excited “to grow Koch Fertilizer from a predominately nitrogen producer and distributor by offering a larger suite of phosphate products to its customers.”
OCP Chief Growth Officer Soufiyane El Kassi said Koch is a key strategic partner “with a shared vision on how best to serve farmers and agriculture.”
The transaction remains subject to the satisfaction of customary closing conditions, including required approvals from regulatory authorities. Fulfilment of these conditions and transaction closure are currently estimated for the second or third quarter of this year.