Morocco’s OCP accelerates growth with new strategic program

Morocco’s OCP Group, one of the world’s top phosphate producers, has launched the Mzinda-Meskala Strategic Program. Announced in December 2022, this initiative aims to significantly increase fertilizer production capacity in the Mzinda-Safi and Meskala-Essaouira regions. It is part of OCP’s broader strategy to meet rising global fertilizer demand while adhering to its sustainability targets, including achieving carbon neutrality by 2040.

Boosting capacity and sustainability

The program targets two major goals: enhancing production capabilities and meeting ambitious environmental commitments. Key to the initiative is the development of a new mine in Meskala and the construction of a mining and chemical complex in Mzinda. These sites will process phosphate rock from the Ben Guerir, Youssoufia, and Meskala deposits.

By 2028, the Mzinda-Safi Corridor is projected to reach an annual output of 12 million tons of rock, 3 million tons of phosphoric acid, and 8.4 million tons of fertilizers. In parallel, the Meskala-Essaouira Corridor will generate 20 million tons of phosphate rock, 1 million tons of phosphoric acid, and 2 million tons of fertilizers annually.

The Mzinda-Meskala program places a strong focus on operational efficiency, cost control, and value chain optimization, ensuring that OCP can meet rising demand in key markets such as Europe, Africa, and India. A key element of the program is its commitment to environmental sustainability, with OCP implementing eco-friendly production techniques to balance industrial growth with responsible environmental stewardship.

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Fostering local integration and economic growth

The program also emphasizes local economic integration, aiming for a 70% local sourcing rate to support over 600 Moroccan industrial companies. This initiative is expected to create 25,000 direct and indirect jobs by 2028, bolstering OCP’s role in Morocco’s industrial and economic development.

Strong economic performance drives expansion

OCP’s decision to advance the Mzinda-Meskala program follows a robust financial performance in the first half of 2024. The group’s revenues reached MAD 43.24 billion ($4.32 billion), up from MAD 37.56 billion ($3.89 billion) in the same period in 2023. This growth was driven by higher export volumes, particularly in fertilizers and phosphoric acid, despite global price declines for raw materials.

The group’s EBITDA rose by 113% to MAD 16.31 billion ($1.69 billion), and operating profit grew to MAD 11.80 billion ($1.22 billion) in the first half of 2024. CEO Mostafa Terrab attributed this success to OCP’s ability to adapt to market conditions, focusing on specialized products like Triple Superphosphate (TSP) to meet global demand. The company’s operational efficiency and strong position in cost management also helped maintain competitive margins.

OCP’s Mzinda-Meskala Strategic Program is poised to reinforce the group’s global leadership in the fertilizer industry. With its focus on expanding production capacity, local economic integration, and sustainability, OCP is positioning itself to meet future agricultural challenges while contributing to Morocco’s industrial growth.