Morocco’s state-run company OCP, the world’s biggest phosphate exporter, is planning to increase its market share of fertilizers to 40 pc by 2020, according to Bloomberg news agency.
The company also seeks to double phosphate rock & derivatives output in the next six coming years as part of the OPC’s development strategy, which includes overhauling mining and industrial infrastructure.
The OCP aims to boost production of phosphate rock from its current level of 34 Million tonnes to 50 million by 2020 through its 11.56 billion euro investment program.
According to Oxford Business Group, plans are also being sketched out to increase annual fertiliser output from 3.5m tonnes to 10m and reduce production costs by up to 40 pc by overhauling infrastructure and expanding port operations.
Phosphates account for around a quarter of Morocco’s export revenue. The OCP has kicked off its expansion program while keeping an eye on the market trends.
With shrinking prices affecting the sector globally, foreign financing is playing an increasingly important role in supporting the company’s development program.
Several factors have contributed to the global drop in prices, including an increase in phosphate production in recent years among newer players, particularly Saudi Arabia and Peru.
Slower economic growth in emerging markets such as China and India has also affected global demand for phosphates. While domestic consumption has eased, China is increasing its exports which dampened the global market.
According to some expert, the Moroccan company could capture half of expected growth in global demand for phosphate-based fertilizers by tripling production capacity and focusing on Africa and South America.
