Economy Featured Morocco News

Morocco’s OCP Welcomes US Cut in Customs Duty on Phosphate Fertilizers

Morocco’s OCP, the world’s largest phosphates producer, welcomed the US decision to cut the customs duty on phosphates-based fertilizers from 19.97 to 2.12%.

The US decision will be applied from November this year to the next revision in the fourth quarter next year.

OCP said its revenue stood at 61.03 billion dirhams ($6 billion) by the end of October, compared with 89.53 billion dirhams the same period last year.

It notes positive demand prospects following China’s reduction of its exports and the growing demand as well as an expected gradual rise in phosphate-based products.

Phosphates fertilizers represented 69% of the group’s revenue up to September this year, up 65% compared to the same period last year.

The group had announced in late 2022 a $13 bln green investment plan to increase fertilizer and ammonia production using renewable energy.

As part of that project, it plans to build an industrial complex, worth $7 bln, that will help it produce green ammonia from hydrogen produced from renewable energies in the southern region of Tarfaya.

OCP is one of the world’s biggest ammonia importers spending $2 billion on the raw material that is essential to fertilizer manufacturing.

OCP plans to kick off production with 200,000 tons of ammonia in 2026 and 1 million tons in 2027 as it also seeks to increase production of fertilizers to 20 million tons in 2027 after 12 million tons in 2021.

The company also plans to increase desalination capacity in Safi and Jorf Lasfar sites in order to supply surplus to nearby towns.

Source: Northafricapost