Koch Industries Complete 50% Acquisition of OCP’s Jorf Fertilizer Company III
Rabat – Koch Ag & Energy Solutions (KAES), an American provider of value-added agriculture and energy solutions, “successfully” completed its acquisition of the Jorf Fertilizer Company III (JCF III). JCF III is owned by OCP Group, Morocco’s phosphates mining and fertilizer giant.
Koch Industries and OCP closed the transaction this Thursday, June 30, establishing JFC III as a 50-50 joint-venture between the two companies.
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.
Reports say that the new deal, announced on March 2, is set to supply the fertilizer complex with American ammonia amid a global shortage of ammonia due to the ongoing war in Ukraine.