Koch Ag & Energy Solutions (Koch) and OCP have signed an agreement under which a Koch affiliate will acquire a 50% interest in Jorf Fertilizers Co. III (JFC III) from OCP. When closed, the transaction will establish a 50/50 joint venture.

 

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 tpy of phosphate-based fertilizers. JFC III is one component of the Jorf Fertilizer Complex, the world's largest phosphate fertilizer production platform.

 

JFC III’s production 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,” said Scott McGinn, Koch Fertilizer executive vice president. “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.” 

 

“Our collaboration with Koch is now entering a new phase after more than a decade of commercial relationship,” said Soufiyane El Kassi, Chief Growth Officer of OCP. “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.”

 

Commenting on the deal, Mostafa Terrab, CEO of OCP said, “Our long-term partnership with Koch is reaching a new stage through the establishment of our Moroccan-based Joint-Venture, which confirms our common goal to provide farmers with high quality and reliable Moroccan phosphate fertilizers.”

 

Mark Luetters, President of Koch Ag & Energy Solutions, echoed Terrab’s statement, adding that the new venture will further grow the relationship between the two partners “as [they] work together to secure JFC III’s long-term success.”

 

Beyond reinforcing the OCP-Korch partnership, the new JFC III venture deal opens new doors for the American giant to establish and reinforce its presence in Africa.

 

“The closing of this acquisition marks Koch’s first substantial investment on the African continent,” said Brad Razook, Executive VP of Koch Industries. “We are excited to add another nutrient to the KAES portfolio in collaboration with a world-class partner.”

 

JCF III has an annual production capacity of 1.1 million metric tonnes of phosphate-based fertilizers, and it is strategically located within the world’s largest phosphate fertilizer production platform, known as the Jorf Fertilizer Complex.