- Russia –Ukraine war has created uncertainty in the international fertilizers supply. Morocco’s OCP is bracing up to tap the escalating global demand for fertilisers by increasing its output to 11.9 million tonnes in 2022, and by another 3 million tonnes in 2023.
Morocco’s state-owned phosphate company, OCP is bracing up to tap the escalating global demand for fertilisers. The fertiliser giant has announced its plans to jack up its production in the current year. It plans to increase its output to 11.9 million tonnes in 2022, as against 10.8 million tonnes in 2021.It is reported that in 2023 it proposes to further boost production by another 3 million tonnes.
Russia and Ukraine are the key suppliers of soil nutrients. The Ukraine war has unleashed uncertainty in the international fertilizers supply chain as the production in Ukraine came to a standstill. Russia is also unable to export due to sanctions from the West. OCP used to source a significant quantity of ammonia, a key input for manufacturing fertilizers from Russia. Currently, the company has sufficient stock of ammonia for the next few months. To offset the loss of the annual 1.8 million tonnes of soil nutrients coming from Ukraine and Russia, the company plans to switch from ammonia-based production to low-nitrogen-based production.
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https://trendsnafrica.com/ocp-to-launch-a-new-plant-to-produce-purified-phosphoric-acid/
OCP has entered into a long-term contract for importing US-produced ammonia. Under its deal with American Koch Industries announced early this month, the two entities will collaborate on ammonia supply to ensure fertilizers production. As a part of its long term strategy to strengthen its market foothold in Africa, it has plans to start producing ammonia from a Nigerian plant in 2025.With its wide network of global suppliers and storage facilities, the company plans to continue to be the leading supplier for the global fertiliser market.
The company foresees a rise in demand for fertilizers from India, the Americas, Europe and Africa.
