The new entity will build on the two groups’ competitive advantages, namely ADNOC’s world-scale sulphur production, ammonia and gas expertise, and shipping and logistics network, and OCP’s access to large phosphate resources, its century-long fertilizers know-how and its marketing network.
The partnership will comprise two fertilizer production hubs, one in the UAE and one in Morocco (utilizing both existing and new assets), giving the joint venture global market reach.
The OCP and its Emirati partner say they will work on developing capabilities that will support their joint venture, as they expand their partnership, leveraging their respective strengths and building their human capital.
OCP Group has engaged in a large-scale development program that will enable it to capture its fair share of growing demand for fertilizers. The first phase of this program was completed this year and has brought the Group’s existing fertilizer capacity to 12 million tons, and rock export capacity to over 18 million tons.
Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said the joint venture with OCP Group is part of ADNOC strategy to diversify its products and increase revenues.
“The agreement builds on the expanded partnership model we announced last year, as we open our entire value chain to reliable, value-adding, long-term partners, who can complement our capabilities and resources, and enhance our market access”, added Al Jaber, hailing the solid ties existing between the United Arab Emirates and Morocco.
Mostafa Terrab, OCP Group Chairman and CEO, said this project brings together the world’s largest phosphate reserves and the world’s largest sulphur production capacity and it represents an unprecedented alliance in the industry, providing the partners with a world-class integrated asset base and complementary geographic locations.
“We view this new partnership as a unique opportunity, in line with our global strategy that will contribute to our ability to serve growing demand for fertilizers worldwide”, the OCP head underlined.
OCP Group is the world’s leading producer and exporter of phosphates in all forms and an essential player on the fertilizers market.