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Morocco's OCP to commission Nigeria, Ghana plants in 2024

Published 25/06/2020, 17:31

By Ahmed Eljechtimi
RABAT, June 25 (Reuters) - Morocco's OCP Group expects a
fertiliser plant in Ghana and an ammonia plant in Nigeria to be
operational by 2024, the company's chief growth officer said,
adding 2 million tonnes a year to its global output capacity.
OCP, the world's biggest phosphates exporter, will build the
two plants, each with capacity of 1 million tonnes a year, as
part of its push to drive the use of phosphates-based
fertilisers in Africa, Soufiyane El Kassi said via email.
It had already announced plans to start operating a
2.5-million tonnes a year fertiliser plant in Ethiopia by 2023
or 2024 with phosphoric acid supplied from Morocco, and El Kassi
said its output would be for both the domestic and export
markets.
Like many other Moroccan firms, including banks, insurers
and real estate companies, OCP has been expanding its
investments in Sub-Saharan Africa in recent years, boosting the
kingdom's economic clout.
The group also operates 28 blending units where fertilizers
are customised to the requirements of different soils and has
offered training to help 750,000 African farmers in eight
countries to increase production.
In 2019, OCP's fertilisers exports hit 9 million tonnes,
including 1.8 million tonnes to Africa or 58% of total
fertilisers sold on the continent.
Low international prices however incurred a 3% drop in
revenue to $5.5 bln in 2019.
It has cut production by 500,000 tonnes in the first
quarter, a move which El Kassi said was to adapt to market
demand.
The OCP, with net debt at $4.7 bln in 2019, last issued an
international bond in 2015.
“Maintaining a footprint in the Eurobond market has always
been part of our financing strategy,” Kassi said.

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