Koch to acquire half share in JFC 1

JFC I owns a 1.2 million tonnes per annum (t/a) capacity phosphate fertilizer plant at Jorf Lasfar, Morocco, the world’s largest phosphate fertilizer production complex. This plant will be operated as a 50:50 joint venture by Koch and OCP, on closure of the transaction, and serve customers around the globe, including those in North America.

The agreement, announced on 17th July, is the second joint venture between the Moroccan phosphate giant and the US nitrogen fertilizer producer. Koch previously acquired a 50% interest in Jorf Fertilizers Company III (JFC III) — renamed Kofert — from OCP in 2022 (Fertilizer International 507, p11). Combined, the two joint ventures will have a phosphate fertilizer production capacity of approximately 2.5 million t/a.

The new joint venture has been announced at an opportune moment, as it follows the US government’s temporary suspension of countervailing duties (CVDs) on Moroccan phosphate fertilizer imports at the end of June. The lifting of CVDs will allow JFC 1 to supply US farmers with phosphate fertilizers, a move that should improve regional supply reliability and diversify supply sources, according to Koch.

“This investment builds on the successful collaboration we have had through the Kofert venture,” said Scott McGinn, President, Koch Fertilizer. “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, the chairman and CEO 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.”

If approved, Koch’s second joint venture with OCP — by strengthening its phosphate product offering and expanding its international production base — marks a further diversification away from being a predominately North American nitrogen fertilizer producer and distributor. OCP, meanwhile, will benefit from the cash proceeds of the part sale of JFC I and gain a better route to market in North America.

The transaction between the two companies requires regulatory approval and needs to satisfy customary closing conditions. Its value has not been disclosed.