#USA #Wichita #Koch Ag #OCP Nutricrops #Jorf Fertilizers

Expanding Horizons in Fertilizer Production

A significant development in the agricultural sector has emerged as Koch Ag & Energy Solutions (Koch) and OCP Nutricrops S.A. (OCP) announce their latest joint venture. This partnership will be known as Jorf Fertilizers Company I (JFC I), where Koch will invest in OCP's operations. Once finalized, this deal will establish a balanced 50/50 ownership and management structure between the two firms.

This joint venture is a strategic enhancement of the long-lasting relationship between Koch and OCP, which reportedly gained momentum in 2022 when Koch acquired a 50% stake in Jorf Fertilizers Company III—now referred to as Kofert. JFC I operates a state-of-the-art phosphate fertilizer production facility situated in Jorf Lasfar, Morocco, boasting an impressive production capacity of up to 1.2 million metric tons of phosphate-based fertilizers annually. Notably, this facility forms part of the Jorf Fertilizer Complex, recognized as the largest phosphate fertilizer production hub globally.

Upon the closure of the JFC I transaction, the cumulative annual production capacity from both joint ventures is expected to reach approximately 2.5 million metric tons of phosphate-based fertilizers. This milestone represents not just a physical expansion in the production capabilities but also marks a renewed chapter in the collaborative efforts surrounding the Jorf Fertilizer Complex between Koch and OCP.

This new venture arrives at an opportune moment for the North American agricultural landscape. Farmers, especially in the U.S., are seeking robustness in supply chains and diversified sources for phosphate fertilizers—elements critical for maintaining resilient agricultural value chains. The recent move by the U.S. government to pause countervailing duties on Moroccan phosphate fertilizer imports only adds more potential for the joint venture to serve the needs of American farmers, who rely on effective phosphorus nutrition for optimal crop yields and soil health.

"This investment builds on the successful collaboration we have had through the Kofert venture," stated Koch Fertilizer President Scott McGinn. His enthusiasm was evident as he expressed commitment to expanding Koch Fertilizer's offerings in phosphate products to better serve customers in North America.

Echoing McGinn's sentiments, Faris Derrij, Chairman and CEO of OCP Nutricrops, acknowledged the significance of this agreement, branding it as a crucial milestone in their partnership with Koch. Derrij reiterated that the joint venture's primary aim is to deliver reliable, high-quality solutions for soil nutrition that cater not only to local farmers but also to clients across North America. This aligns with the overarching goal of fostering resiliency in agricultural practices and ensuring long-term food security amid changing environmental dynamics.

The successful execution of this joint venture is contingent upon the fulfillment of standard closing prerequisites, including relevant regulatory approvals. This pivotal partnership will undoubtedly drive innovations in agricultural practices and ensure that farmers have access to top-quality fertilizers needed for sustainable agricultural production.

About OCP Nutricrops

OCP Nutricrops is a subsidiary of the OCP Group focused on developing soil and plant nutrition solutions to tackle global food production and sustainability challenges. By providing customized, sustainably produced phosphate-based solutions, OCP Nutricrops empowers farmers to enhance soil health and increase crop yields efficiently.

About Koch

Koch Ag & Energy Solutions, along with its affiliates—Koch Fertilizer, Koch Agronomic Services, and Koch Energy Services—serves as a notable entity in offering value-added solutions across agriculture, energy, and commodity markets. Located in Wichita, Kansas, Koch operates as one of America’s largest private companies, contributing significantly to various sectors through a commitment to growth and innovation. With a workforce surpassing 130,000 globally, Koch remains dedicated to investing in the future and improving agricultural practices through cutting-edge advancements.