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Global Economy
OCP and CHS Forge $450 Million US Phosphate Fertilizer Joint Venture in Louisiana
Morocco's OCP Group, through its OCP North America subsidiary, and CHS Inc., the largest farmer-owned cooperative in the United States, have announced plans to build a new phosphate fertilizer production facility in Waggaman, Louisiana. With an investment of up to $450 million, the plant aims to produce over 1 million tonnes of phosphate fertilizers annually, marking the first such facility built in the U.S. since 1984 and significantly reducing American dependence on fertilizer imports.
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A Landmark Industrial Partnership
In a move that reshapes the American fertilizer landscape, OCP North America, a subsidiary of Morocco's OCP Group, and CHS Inc., the nation's largest farmer-owned cooperative, have unveiled plans for a joint venture to construct a state-of-the-art phosphate fertilizer production facility. The project, located within the Cornerstone Energy Park in Waggaman, Louisiana, represents an investment of up to $450 million and will boast an annual production capacity exceeding 1 million tonnes of phosphate fertilizers.
This facility would be the first of its kind built in the United States since 1984, signaling a significant shift toward domestic fertilizer production self-sufficiency.
Complementary Strengths Drive the Partnership
Under the agreement, OCP Group will supply phosphoric acid, leveraging its world-class phosphate resources and technical expertise. Finished products will be distributed through the extensive networks of both OCP North America and CHS, reaching American farmers, cooperatives, and distributors nationwide.
"This project marks a major step in OCP North America's commitment to serving American agriculture. Together with CHS, we aim to build durable infrastructure that strengthens U.S. food security and ensures a reliable supply of American-produced fertilization solutions that farmers need," said Kevin Kimm, CEO of OCP North America.
Jay Debertin, President and CEO of CHS, echoed this sentiment: "As a farmer-owned cooperative, our mission is to help farmers succeed. With OCP North America, we have the opportunity to build the first phosphate fertilizer plant in the United States in more than 40 years. This investment could create more value for our members by bringing fertilizer production closer to American farmers and the cooperative network."
Strengthening U.S. Supply Chain Resilience
The United States currently imports approximately 40% of the phosphate-based fertilizers needed to meet domestic agricultural demand. According to partner estimates, the new capacity could substantially reduce U.S. reliance on imported phosphate fertilizers, aligning with national priorities to expand domestic fertilizer production capabilities.
A funding application has been submitted under the FIELDS program (Fertilizer Investment & Expansion for Long-term Domestic Supply) administered by the U.S. Department of Agriculture (USDA).
OCP Group's Expanding Global Footprint
For OCP Group, this initiative exemplifies its strategy of combining industrial strength and phosphate expertise with a presence in key global agricultural markets. Through OCP North America, the Group continues to develop tailored phosphate solutions for North American agriculture, contributing to the security and resilience of agricultural supply chains.
The project remains subject to customary regulatory approvals, as well as those related to the project itself and its financing.