OCP Group
The OCP Group is a Moroccan based phosphate rock miner, phosphoric acid manufacturer and phosphate fertilizer producer. Founded in 1920, the company has grown into one of the world’s largest producers of phosphate and phosphate-based products.
OCP has access to more than 70% of the world’s phosphate rock reserves. Initially a mining company, OCP has diversified in 1965 to become a phosphate processor, making it one of the world’s leading fertilizer manufacturers. The company holds a 31% market share of the world phosphate product market.
The group employs nearly 23,000 people in Morocco and a number of international subsidiaries. In 2018, its revenues amounted to US$5.884 billion.
History
Origins
The OCP Group was founded in Morocco in 1920 as the Office Chérifien des Phosphates following Royal Decree. Mining production began in 1921, when it began extracting phosphate rock at its first mine in Khouribga. Transportation of the phosphate to the port of Casablanca also started in 1921, allowing the first export of phosphate that year. Subsequently, OCP launched other mining sites in Youssoufia in 1931 and in Benguerir in 1976, and launched chemical production in Safi in 1965 and in Jorf Lasfar in 1984.Ownership
In 2008, the OCP Group became a limited company. Currently 95% of the OCP Group is owned by the Moroccan state and 5% by Banque Centrale Populaire investment funds.Corporate Timeline
- 1920 Office Chérifien des Phosphates founded
- 1921 Launch of mining production in Khouribga
- 1931 Launch of mining production in Youssoufia
- 1965 Launch of chemical production in Safi
- 1976 Acquisition of 65% of Phosboucraa
- 1980 Launch of mining production at Benguerir site
- 1984 Launch of chemical production at Jorf Lasfar
- 1996 Construction of purified phosphoric acid plant launched in Jorf Lasfar
- 2002 OCP becomes sole owner of Phosboucraa
- 2006 Office Chérifien des Phosphates becomes OCP
- 2008 Transformation of Office Chérifien des Phosphates into a Corporation
- 2011 Joint Venture with Jacobs Engineering
- 2013 Joint Venture with DuPont de Nemours
- 2014 Launch of the Slurry Pipeline between Khouribga and Jorf Lasfar
- 2016 Creation of OCP Africa
- 2018 Inauguration of Mohammed VI Polytechnic University and Joint Venture with IBM
The OCP Group plays an important economic and social role in Morocco. The value of phosphates and their derivatives represented nearly a quarter of the country's exports and approximately 3.5% of the GDP in 2010.
In 2016, Fitch Ratings confirmed the rating of "investment grade" for the OCP Group.
After approval from the AMMC on December 9, 2016, the OCP Group managed to reach 10.2 billion dirhams of bonds from the national community. This loan is the largest ever made in the Moroccan market.
In February 2016, the OCP Group created a new subsidiary named OCP Africa, which is responsible for leading the development of the group in the African fertilizer market through a network of subsidiaries in 12 African countries.
In the same year, OCP adopted a new internal culture, called ‘Le Movement’, aimed at re-focusing the group even more strongly on innovation.
Operations
Mines and Key Sites
Khouribga
OCP’s first mine opened in Khouribga in 1921. The Khouribga area has the richest phosphate deposits in the world. In 2014, a slurry pipeline between Khouribga and Jorf Lasfar was launched, which transports phosphate from the mines to the processing facility safely and efficiently. The pipeline, one world’s longest gravity powered pipelines saves more than 3Mm3 of water per year, as well as a significant amount of energy. The site employs more people than any other OCP mine, which is more than 6,100 people. In 2016, the mine produced 18.9MT of Phosphate Rock, or 70% of the total group output.In 1994, the OCP Group started a new mining project in Sidi Chennane in the Khouribga area. The construction of the purified phosphoric acid plant was launched in Jorf Lasfar in 1996 and started production in 1998.
In 2014, the OCP Group inaugurated the slurry pipeline linking Khouribga to Jorf Lasfar, a technological advancement in the transportation of phosphates.
In February 2016, a fertilizer production plant dedicated entirely to Africa was inaugurated at Jorf Lasfar, the African Fertilizer Complex. Connected to the slurry pipeline, JFC 4 will be fully integrated and have its own thermoelectric plant. These plants not only make Jorf Lasfar completely energy self-sufficient, they also create an energy surplus that fuels the complex’s sea water desalination station.
Gantour (Benguerir and Youssoufia)
Gantour is made up of two mining facilities, Benguerir and Youssoufia and holds the second largest amount of Morocco’s phosphate reserves, 37% of the total.The mine in Benguerir opened in 1980. It is situated 70 km north of Marrakesh.
In 2016 the mines’ produced 6.3MT of Phosphate Rock, representing 23% of the group’s total output. Since 2017 the mine has been one of Mohammed VI Polytechnic University’s testing sites that is open to the scientific community and allows researchers from partner universities to test full-scale solutions in key areas. Called the “Advanced Mining Technology Platform,” this pilot mine has many purposes.
Rock from Benguerir is transported by rail to Safi by ONCF, the national railway company of Morocco.
The Group's activities are organised into an integrated model covering all operations of the value chain from the extraction of phosphates to the production and marketing of various products including fertilizers and phosphoric acid.
The mine in Youssoufia is the second most important mine to the Moroccan economy after the Khouribga mine. It is also the third biggest producer world wide of phosphate.
Since 1998, OCP has also operated the Bouchane mine, which is situated 40 km from Youssoufia. The phosphate from this mine is also processed at Youssoufia.
Jorf Lasfar
The Jorf Lasfar processing platform is the largest fertilizer complex in the world. The first phase of the site opened in 1984 and has been expanded multiple times since. Products are made using phosphate rock mined in Khouribga. The site produced 4.63Mt of fertilizer in 2016, including, 1.86Mt Phosphoric acid, 1.91Mt MAP, and 1.14Mt DAP. Over 30 different of fertilizer were produced to suit various soil types. The complex is made up of several units including the newest, the Africa fertilizer complex and JFC II. The site is the world’s largest exporter of fertilizer. The site has a desalination plant with a capacity of 25Mm3 per year – since its construction this has significantly reduced the amount of water consumed by the plant from local sources.Safi
The first OCP chemical site, the Safi complex started its activities in 1965 to process the phosphate rock from Benguerir. In addition to fertilizer and phosphoric acid production units, the site has a phosphate washing unit and a sulfuric acid plant.In 2016 the site produced 1.5Mt of phosphoric acid and 832.6Kt of TSP fertilizer. These figures represented the highest production figures in the site’s history. The site produces fertilizer for both the domestic and international markets.
Phosboucraa (Subsidiary)
In 1976, OCP acquired 65% of Phosboucraa mine, and became the sole owner in 2002.Operations at the mine originally began in 1972; its activity includesmining, processing and marketing phosphate rock. Boucraa mine represents approximately 2% of the Morocco’s total phosphate reserves, 4.6% of OCP Group’s total revenue and around 8% of the total rock extracted.
100% of profits made in the region are reinvested in the local community through the Phosboucraa Foundation. The Phosboucraa Foundation has so far helped more the 50,000 people through its various programs in education, health, and entrepreneurship.
Phosboucraa’s activities are located in 3 different places:
- Headquarters located in the City of Laayoune
- The processing plant and wharf are located at Laayoune beach, 20 km south-west of the Headquarters. A 102 km long conveyor belt is used for transporting phosphates from the mine
- Mining activities are located 140 km away by road in Bou Craa, thus far from any possible shipping area
The project will continue the groups policy of hiring local workers, which now make up 76% of the workforce, up from just 4% in 1976. This has been achieved through outreach and training programs, upskilling locals to take on these roles. These schemes have also led to hundreds of workers being trained to do skilled work at the groups site in the North.
Products
Phosphate rock
The mining of phosphorite, was OCP’s earliest operation, with the sale of these products being the company’s main business. The company extracted 34.4 metric tonnes in 2018, 11.3 tons of which were exported, with Khourigba accounting for the biggest share. OCP market share in this product category is 38%.Phosphoric acid
is made from phosphate and due to its non-toxic nature, is widely used in the food, cosmetic, and dental industry. It is an example of diversification and supply chain integration to drive value. OCP produced 6.1 million metric tonnes in 2018, giving it a market share of 49%.Standard (Conventional Fertilizers)
As another example of moving up the value chain, OCP also has a number of sites producing fertilizer. Fertilizer sales, including fortified fertilizers now account for slightly over half of OCP’s total revenue and 23% of its world market share. The phosphate-based conventional fertilizers produced by OCP include; Mono-Ammonium Phosphate a concentrated phosphate fertilizer, made with phosphorus and nitrogen. Di-Ammonium Phosphate is a concentrated phosphate fertilizer, that can also be used as a fire retardant. Triple Super Phosphate is a concentrated phosphate fertilizer made with just phosphate. These can be used directly for soil fertilization or as raw material for blends, or other products.Fortified fertilizers
OCP Group also produces a number of fortified fertilizers that can be tailored to meet the needs of particular types of soil – even down to a field by field scale. A number of different formulations are produced. NP+ are nitrogen and phosphate-based complex fertilizers, enriched with secondary and micro nutrients. NPK+ is similar in structure to the former, but uses a different chemical process, and contains potash. OCP products can also be tailored to meet crop specific nutrient requirements, for example, for corn, cotton, or cocoa.Soluble fertilizers
Fertilizers are used for high value crops specifically for irrigated systems. They ensure efficient use of fertilizers, thus considerably enhance agricultural productivity and reduce water consumption. These fertilizers are well-suited to new micro-irrigation and sprinkler systems. The groups total fertilizer production is 8.8 million metric tonnes.Animal Feeds
OCP also produces animal feeds from phosphate. The product is called PHOSFEED® and is made from phosphoric acid and calcium carbonate. PHOSFEED® is GMP+, HACCP and ISO 22000 certified.OCP Globally
While the majority of OCP’s operations are based in Morocco due to its large Phosphate reserves, the company has expanded globally, in processing, sales, and distribution. The company has more than 160 customers on 5 continents. The companies also support the communities they operate in by analyzing soil to tailor fertilizer to specific needs.North America
OCP North America, headquartered in New York, founded in 2019. The company conducts research on the North American market, as well as analyzing soil to better customize fertilizer. In early 2020, it will assume the North American sales and marketing portfolio of OCP, building on the research undertaken. OCP North America is also building a range of partnerships and initiatives in the region designed to advance OCP’s commitment to sustainable plant nutrition. As with the rest of the group OCP North America is building strong ties with academic, R&D and innovation partners across North America.South America
OCP’s largest South American operations are located in Brazil. The company’s Brazilian operations are made up of two companies, OCP di Brasil and OCP Fertilizantes, both headquartered in Sao Paulo. The companies undertake competitor and market research as well as working with farmers to establish the best fertilizers for their needs. The company also helps market, sell, and distribute OCP products in the country. OCP sales in the country increased by 20% in Q1 2019.India
OCP India undertakes market and soil research in order to drive sales of OCP products in the country. The company carries out administration, sales support and marketing for OCP’s Indian customers. The company is constructing a fertilizer plant with Krishak Bharati Limited that will have a capacity of 1.2 million tonnes per year – the combined investment is worth US$230 million. The unit will use phosphate transported from OCP facilities in Morocco, the company will also be responsible for the shipping of the products.Asia Pacific (APAC)
OCP has a research, sales and marketing function in Asia Pacific based in Singapore and Beijing. The construction of a fertilizer processing plant is underway in Singapore to allow easier mass customization of products for local markets.OCP Africa
Founded as a wholly owned subsidiary of OCP S.A. in 2016, the company acts as a distributor for OCP products as well as operating facilities for fertilizer production. This capacity is being expanded rapidly following a large-scale investment program. OCP Group sees Africa as a major market for growth due to its unexploited potential due to the comparatively low use of fertilizers, which is reflected in lower than average per hectare crop yields. Support provided includes training programs and soil analysis that seeks to help farmers make the most of their land. OCP Africa operates in 16 African nations and has 12 subsidiary companies. OCP’s largest African operation outside of Morocco, in Ethiopia, is set to expand significantly on the completion of a new fertilizer blending unit that will increase supply of customized fertilizer.The African Development Bank has pledged to support the various initiatives of the OCP Group in favour of the African continent.
Major Subsidiaries and Joint Ventures
Policy Center for the New South
Policy Center for the New South, formerly OCP Policy Center, is a Moroccan policy-oriented think tank based in Rabat, Morocco, aiming to promote knowledge sharing and to contribute to debate on key economic and international relations issues. The organization hopes to bring fresh perspectives to international debate by using public policy analysis and consultation, while promoting international cooperation for the development of countries in the southern hemisphere. The center is supported by the OCP foundation.JESA
In 2010, OCP Group entered in to a joint venture with Jacobs Engineering Group Inc., one of the world's largest providers of technical, professional, and construction services. The new company was named Jacobs Engineering SA. Jacobs Engineering SA, will provide OCP as well as other industries in Africa with world-class tools to support OCP’s industrial strategy in construction of new infrastructure projects first of which were new chemical plants, the company also specializes in the mining, energy, water, infrastructure and planning, transport, and the environment. The company has since become a leader across these sectors. The JV employs more than 1,700 people, 1,500 of whom are in Morocco with 1000 of the jobs being highly skilled engineering roles. The company is now fully owned by OCP.DuPont
In 2013, OCP Group formed a joint venture with DuPont, one of the world’s largest chemical producers. The firm, DuPont OCP Operations Consulting JV will provide advisory services on safety, environmental, and operational improvements. These services will be offered to improve the business environment in Morocco and across Africa. The JV’s aim is to deliver DuPont’s world recognized services using OCP’s region leading footprint.IBM (TEAL)
In 2017, OCP Group announced a joint venture with IBM Inc., one of the world largest providers of business IT and software. The JV, called TEAL Technology Services™, provides digital and IT services to a number of sectors from agriculture to industry. TEAL will implement advanced technologies such as analytics, cognitive and Internet of Things and develop customized services, drawing on both OCP and IBM expertise, while also aiming to generate skilled employment in the Moroccan and African IT sectors. It is hoped that TEAL will draw on OCP and IBM’s positions as market leaders in their respective fields to help facilitate a digital revolution in Africa.Prayon
is a joint venture between OCP Group and the Wallonia Regional Investment Company. The original company was founded in 1882 in Belgium as the Société Anonyme Métallurgique de Prayon, a Zinc producer. In 1996, OCP bought half of the shares. The company specializes in chemical R&D, finding and developing compounds and developing their use cases. The company, through OCP’s expertise is recognized as a leader in phosphate creativity.Corporate Identity
Corporate culture: ‘The Movement’
To help move the business forward, the Group launched a new internal business philosophy in 2016, ‘Le Mouvement’. The scheme invites all employees to unlock their potential and give free rein to their creativity. Giving them the necessary means and time to work on the topic of their choice, as long as they create value for OCP and leave their comfort zone to innovate. The Movement has three major objectives: to make OCP a more global company, a digital company, and a company of learners. Since its launch, new managerial and organizational approaches, disruptive innovations, and a new mindset have already emerged and profoundly changed our way of thinking and doing things. It aims to drive the company forward by increasing employee engagement and promoting entrepreneurship.Sustainability and Social Impact
OCP is one of many major companies increasingly looking towards the concept of a circular economy. OCP is taking this belief and supporting this by reimagining a whole range of its industrial processes in order to reduce its environmental footprint. With Morocco being a country under water stress, the impact of OCP’s water use was significant. However, through desalination and water recycling, OCP now generates 30% of its water from these sustainable sources and plans to reach 100% over the next decade. In addition to sourcing more sustainable supplies, OCP has also reduced its water use by introducing a slurry pipeline, an initiative that saves in excess of 3 million m3 of water per year.In order to counter the energy intensity of the company’s operations, the Group is on course to meet 90% of its energy needs from either renewables or co-generation by 2020. This move will save tonnes of CO2 from entering the atmosphere. Over the next few years, all of OCP’s needs will be renewable or co-generation – helping OCP to fulfil another aspect of its circular vision. OCP produces 400 GWh of renewable energy per year that is used across its sites, with the Benguerir, Youssoufia, and Phosboucraa sites getting 100% of their power from these sources.
The Group has also committed to revitalizing former mining sites and allowing local communities to generate additional income as well as leaving former mine sites in a better ecological condition than before operations. OCP’s sustainability and environmental programs are reviewed to the internationally recognized GRI auditing standard.
Community Engagement
Act4Community
OCP has also launched the Act4Community as a new way to engage with the local communities by supporting their development, with a real focus on generating long-term value through increasing employability and turning ideas into projects. The scheme aims to draw on the company’s culture of individual entrepreneurship, using employee’s expertise and OCP’s corporate resources to seek to improve a number of areas, from health, education and training, as well as the environment. The long-term goal of this project is to both aid in the entrepreneurial development of OCP staff at the same time as increasing local people’s incomes and living standards – as well as helping OCP broaden its local skill and supplier base.Act4Community collaborates with various NGO’s around the world and most recently collaborated with the NBA to launch a basketball skills program in Morocco and Rwanda. The first location at which was in the mining city of Khourigba. The project is in partnership with the Charity Hoops4Hope and NBA legend Ray Allen.