Assahafa.com
Morocco’s OCP Group, one of the world’s leading phosphate producers, has launched its Mzinda-Meskala Strategic Program, aimed at significantly expanding fertilizer production in the country.
Initially announced in December 2022, the program is set to enhance production capacity in two key regions: the Mzinda-Safi Corridor and the Meskala-Essaouira Corridor.
This initiative is part of OCP’s broader strategy to meet growing global demand for fertilizers while committing to long-term sustainability goals, including achieving carbon neutrality by 2040.
Increasing capacity and sustainable goals
The Mzinda-Meskala Strategic Program has two primary objectives: boosting fertilizer production to strengthen OCP’s global supply capacity and adhering to its ambitious environmental goals.
The program aims to develop a new mine in Meskala and construct a state-of-the-art chemical and mining complex in Mzinda, both of which will process phosphate rock from key deposits in Ben Guerir, Youssoufia, and Meskala.
By 2028, OCP plans to reach an annual production capacity of 12 million tons of rock, 3 million tons of phosphoric acid, and 8.4 million tons of fertilizers within the Mzinda-Safi Corridor.
Simultaneously, the Meskala-Essaouira Corridor is projected to produce 20 million tonnes of phosphate rock, 1 million tons of phosphoric acid, and 2 million tons of fertilizers annually.
Economic development and local integration
In addition to its production goals, the Mzinda-Meskala program emphasizes the importance of local economic integration. OCP has set a target of achieving a 70% local integration rate, a move that will support over 600 Moroccan industrial companies.
This effort is expected to drive substantial economic benefits across the regions involved, contributing to job creation and boosting industrial activity.
The program is anticipated to generate 25,000 direct and indirect jobs by 2028, further reinforcing OCP’s role as a key player in Morocco’s economic development.
OCP’s investment in local capacity-building is part of its broader effort to support Morocco’s industrial ecosystem, leveraging local resources and talent to enhance its global competitiveness.
Operational efficiency and sustainability commitments
A central aspect of the Mzinda-Meskala Strategic Program is OCP’s focus on operational efficiency, with an emphasis on cost control and optimizing its value chain.
The expansion is designed to ensure that OCP can continue to meet rising demand in key global markets, including Europe, Africa, and India.
By increasing production capacity while maintaining a strong focus on efficiency, the group aims to remain competitive in a highly dynamic global fertilizer market.
OCP’s commitment to sustainability is also a core component of this initiative. The group has set a goal to achieve carbon neutrality by 2040, and the Mzinda-Meskala program plays a critical role in this effort.
By implementing environmentally friendly production techniques and optimizing energy use, OCP plans to balance its industrial expansion with responsible environmental stewardship.
Economic performance supports expansion
OCP’s decision to move forward with the Mzinda-Meskala Strategic Program comes on the back of strong economic performance in the first half of 2024.
The group reported a significant rebound in sales, reaching MAD 43.2 billion ($4.4 billion) by June 2024, up from 37.6 MMDH during the same period in 2023.
This growth was primarily driven by higher export volumes, particularly in fertilizers and phosphoric acid, despite declining global prices for raw materials.
Chairman and CEO Mostafa Terrab emphasized the group’s ability to adapt to changing market conditions, noting that OCP was able to capitalize on growing demand for specialized products such as Triple Superphosphate (TSP).
The group’s flexibility, combined with its strong position in cost management, helped it maintain competitive margins.
Terrab also highlighted that OCP’s operational efficiency and market responsiveness allowed the company to deliver higher volumes, particularly in key markets such as Europe and Africa.
The rise in export volumes for phosphate rock mitigated lower sales prices, helping to boost overall revenue.
With the launch of the Mzinda-Meskala Strategic Program, OCP is positioning itself for continued growth and global leadership in the fertilizer industry.
The program’s focus on expanding production capacity, coupled with its sustainability and local integration efforts, reflects OCP’s broader strategy to meet the challenges of global agricultural demand while contributing to Morocco’s economic development.
Source: Morocco word news
