OCP gets greenlight to set up organic fertilizers production & marketing company in Spain

The OCP group announced that it has obtained the Government’s greenlight for the creation in Spain of a company dedicated to the production and marketing of organic fertilizers as well as to research and development in this field.

The announcement was made after the publication in the Official Gazette of a decree allowing the Group to create the joint venture.

The new company, called Fertinagro OCP Organic Biosolutions, will be launched in partnership with the Spanish company Fertinagro Biotech S.L, where OCP Group holds 20% of the capital, OCP said in a press release.

The objective is to follow the development of the organic fertilizer market, diversify its product range with new fertilizers with high added value and provide fertilization solutions based on Fertinagro’s experience in the sector, the press release said.

The new entity will be created in the form of a joint-stock company, with a €25 million capital to be financed at 60% by loans. The remaining 40% will be provided by the shareholders’ own resources.

According to forecasts, the company should generate a turnover of approximately €4.4 million at the beginning to reach nearly €98.4 million by 2029, equivalent to an average annual growth of 47%.

OCP Group, the world’s largest exporter of phosphates and a leading global phosphate plant nutrition player, had, in October 2018, acquired 20% of the Spanish Fertinagro Biotech S.L. which manufactures and supplies a wide range of plant nutrition solutions.

Global demand for Moroccan phosphate rose lately in light of the repercussions of the Russian-Ukrainian crisis, after Russia’s exports of this substance were affected by Western sanctions.