Rabat – The Moroccan government has greenlighted the expansion of OCP Nutricrops subsidiaries in France and India.
Decrees published in the Official Bulletin earlier this month announced the formalization of the approval.
The expansion is part of OCP Group’s strategy to strengthen its international position and reinforce the presence of its subsidiary OCP Nutricrops, specialized in the production and marketing of high-value-added phosphate fertilizers in Europe.
Regarding the subsidiary in France, the group intends to create the company with a capital of €26 million.
“The new company will be tasked with coordinating marketing activities in Europe and developing specialized fertilization products tailored to the characteristics of European soils and crops,” the statement published in the official gazette reads.
OCP Group’s expansion comes in a context marked by high competitiveness and the high maturity of the European fertilizer market.
The statement also recalls the growing European demand for sustainable, digital, and low-carbon fertilization solutions.
The decree further added that establishing a subsidiary of OCP Nutricrops seeks to support ecological agricultural transformation.
OCP Group approved the operation during its meeting held on March 11 last year.
The government also approved the creation of an OCP Nutricrops subsidiary in India.
The subsidiary will be in charge of developing and marketing fertilization solutions adapted to soil and crop characteristics in India. It will also be responsible for producing and exporting phosphate-related chemical products and providing research and development and logistical services.
The government recalled the importance of the phosphate fertilizer market in India as well as the need for the provision of tailored fertilization solutions in India, given its diversity of soils and crops.
It endorsed the creation of OCP Nutricrops in India’s market, stressing that this presence will strengthen proximity to fertilizer consumers and improve OCP Group’s commercial responsiveness through the development of customized products tailored to local markets.
The announcement came amid high demand for Morocco’s fertilizer amid the war in the Middle East.
Earlier this week, Reuters reported that India is actively in talks with Morocco and other countries to secure additional fertilizer supplies as the Strait of Hormuz closure restrictions threaten to affect global availability.
Reuters said New Delhi seeks to diversify its import sources.
The decision came a few weeks after a statement by India’s Department of Fertilizers, which announced the formalization of long-term fertilizer agreements with several countries, including Morocco.
The arrangements include annual quantities of 2.5 million tonnes from Morocco.
Morocco’s fertilizer supply role extends beyond India.
The US is also in discussions with Morocco to secure shipments to Rabat.
According to Argus Media, OCP sold 90,000 tonnes of phosphate fertilizers to Latin American markets for the April shipment.
Last year, OCP Group reported a 17% increase in revenues, which amounted to around $11.4 billion.
Morocco holds some of the world’s largest phosphate reserves. OCP plays a key role in managing and developing the country’s resources, extracting phosphate rock and processing it to produce fertilizers that are key for global agriculture.
In addition to its global focus, OCP is also strengthening its position in Africa, a key priority in which the group contributes to food security and sovereignty with heavy investments and partnerships to provide customized fertilizers and solutions to improve productivity and support sustainable agriculture.
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