en.Wedoany.com Reported - Koch Ag & Energy Solutions and OCP Nutricrops signed an agreement on July 17 to acquire a 50% stake in Jorf Fertilizers Company I (JFC I), establishing a second 50/50 operational joint venture at the Jorf Lasfar industrial complex in Morocco.
JFC I operates a phosphorus fertilizer production facility with a nameplate capacity of 1.2 million metric tons per year. Upon completion of this transaction, combined with the Kofert joint venture formed after Koch acquired a 50% interest in Jorf Fertilizers Company III in 2022, the two joint ventures will have a total annual phosphorus fertilizer capacity of approximately 2.5 million metric tons. The transaction is subject to regulatory approvals.
Scott McGinn, President of Koch Fertilizer, stated that this investment builds on the experience of Kofert and expands Koch's phosphorus fertilizer product portfolio for customers. Faris Derrij, Chairman and CEO of OCP Nutricrops, said the agreement strengthens the two companies' ability to provide soil nutrition solutions for North America while supporting global food security.
The agreement was signed weeks after the Trump administration suspended anti-dumping and countervailing duties on Moroccan phosphorus fertilizers for eight months on June 29, citing domestic supply tightness due to a partial closure of the Strait of Hormuz. The U.S. Department of Agriculture (USDA) estimates that the tariff suspension could reduce U.S. phosphorus fertilizer costs by up to 22%, saving farmers approximately $1.82 billion annually. The larger, co-managed Jorf capacity base will increase OCP's supply to the North American market during this period.
The Jorf fertilizer complex at Jorf Lasfar is the world's largest integrated phosphorus fertilizer production platform. Its parent company, OCP Group (Morocco's state-owned phosphate company), holds over 70% of the world's known phosphate reserves and accounts for approximately 31% of the global phosphate market. Phosphorus cannot be synthesized and must be mined, making Morocco's reserves a critical strategic resource for global food production.
Mosaic successfully petitioned for anti-dumping and countervailing duties on OCP in 2021, claiming that subsidized Moroccan imports harmed the domestic industry. These tariffs were reduced to 2.11% by the end of 2025 and were temporarily suspended by the Trump administration in June 2026, reopening the U.S. market to OCP. Through the new joint venture, Koch can directly hold a share of Moroccan supply during the duty-free period to serve U.S. customers.
The JFC I transaction is subject to customary closing conditions and regulatory approvals. The parties did not disclose a target closing date or financial terms.
