MOROCCO – OCP Group, one of the leading exporters of phosphate rock, phosphoric acid and phosphate fertilizers in the world has received approval from the Government of Morocco to launch operations in Romania, in cooperation with Emirati agricultural company Al Dahra.
The approval to invest in Romania was given to OCP (formerly The Office chérifien des phosphates) by Morocco’s Head of Government, Saad Eddine El Othmani, with the countersignature of the Minister of Finance, Mohamed Benchaaboun.
OCP operations are set to be executed by a newly-founded company to be called the South East European Fertilizer Company (SEEFCO).
Morocco World News reports that the OCP will acquire a 50% stakes in the company, while UAE’s Al Dahra will control the other half.
The new investment aims to extend OCP’s activities to Romania and later use the new base as a hub to expand into Central Europe and Eastern Europe.
By collaborating with the Emirati group, the investment costs for OCP will be significantly lower, with the Moroccan group also benefiting from Al Dahra’s book of business.
SEEFCO will start with a capital of US$5 million, shared equally between the Moroccan and Emirati organizations.
OCP which is 95% state-owned and 5% by the Banque Centrale Populaire, had a revenue of US$5.88 billion in 2018, scoring an annual increase of 19%.
The new partner, Al Dahra, is a multinational specialized in the cultivation, production, and trading of animal feed and essential food commodities.
The company has a an annual turnover of over US$1 billion and it employs around 5,000 workers in over 20 countries and caters to more than 45 markets.
The OCP’s Board of Directors made the decision to invest in Romania towards the end of 2018.
The decision is in line with the OCP’s vision to branch out internationally and strengthen its position as a global leader in phosphates.
In September 2019, the OCP signed an agreement with the Ghanaian government to build a fertilizer plant in Ghana by 2024.
The agreement is an essential component of OCP’s international venture, aiming not only to keep the group’s leadership position in terms of agricultural output but also to participate in the pan-African vision of achieving food security.
