Key Takeaways
- Koch Ag & Energy Solutions and OCP Nutricrops S.A. signed an agreement for Koch to invest in Jorf Fertilizers Company I (JFC I), creating a 50/50 joint venture once the deal closes.
- JFC I owns and operates a phosphate fertilizer production facility in Jorf Lasfar, Morocco, with capacity to produce up to 1.2 million metric tons of phosphate-based fertilizers annually.
- Combined with Kofert, the joint venture Koch and OCP formed in 2022, the two ventures will represent about 2.5 million metric tons of annual phosphate-based fertilizer production capacity.
- The deal follows the U.S. administration's recent decision to temporarily suspend countervailing duties on Moroccan phosphate fertilizer imports, which the companies said creates an opportunity to serve U.S. farmers.
- Koch Fertilizer President Scott McGinn and OCP Nutricrops Chairman and CEO Faris Derrij both said the joint venture builds on their companies' long-standing partnership.
Koch Ag & Energy Solutions and OCP Expand Phosphate Partnership
Koch Ag & Energy Solutions (Koch) and OCP Nutricrops S.A. (OCP) have signed an agreement for Koch to invest in Jorf Fertilizers Company I (JFC I), a phosphate fertilizer producer currently owned by OCP Nutricrops. Once the transaction closes, it will establish a 50/50 operating joint venture between the two companies. The agreement builds on a relationship the companies strengthened in 2022, when Koch acquired a 50% interest in Jorf Fertilizers Company III, since renamed Kofert.
Inside the Jorf Fertilizer Complex
JFC I owns and operates a phosphate fertilizer production facility in Jorf Lasfar, Morocco, with the capacity to produce up to 1.2 million metric tons of phosphate-based fertilizers annually. The facility is part of the Jorf Fertilizer Complex, which the companies describe as the world's largest phosphate fertilizer production platform. Once the JFC I deal closes, the new venture and Kofert together will represent a combined annual production capacity of about 2.5 million metric tons of phosphate-based fertilizers, intended to serve customers globally, including in North America.
What the Deal Means for North American Agriculture
The companies said the new joint venture arrives as farmers and customers look for greater supply reliability, more diversified sources of phosphate-based fertilizers, and long-term solutions to support resilient agricultural value chains. They also pointed to the U.S. administration's recent decision to temporarily suspend countervailing duties on Moroccan phosphate fertilizer imports, which they said creates an opening for the venture to supply U.S. farmers and customers with phosphate-based plant nutrition products used to support soil health and crop yields.
Koch Ag & Energy Solutions and OCP Leaders on the Agreement
“This investment builds on the successful collaboration we have had through the Kofert venture,” said Scott McGinn, Koch Fertilizer President. “We are excited to expand Koch Fertilizer's phosphate offering for our customers and to continue to grow Koch's long-standing relationship with OCP.”
“We welcome the signing of this agreement, which marks an important milestone in our long-standing partnership with Koch, a key North American player,” said Faris Derrij, Chairman and Chief Executive Officer of OCP Nutricrops. “The joint venture strengthens our ability to deliver reliable, high-quality soil nutrition solutions to farmers and customers, including across North America, while contributing to more resilient agricultural value chains and long-term food security.”
The transaction is still pending customary closing conditions, including regulatory approvals.
