OCP and CHS Aim to Build a Fertilizer Plant in the United States
The Moroccan company OCP and the American agricultural cooperative CHS are planning to build a new phosphate fertilizer plant in Louisiana. The project could produce over one million tons per year and significantly reduce the United States’ dependence on imports.
The Moroccan group OCP, through its subsidiary OCP North America, and CHS, one of the leading farmer-owned agricultural cooperatives in the United States, are taking a significant step toward developing national production of phosphate fertilizers.
The two organizations have announced a joint venture project aimed at constructing and operating a new phosphate fertilizer production facility at the Cornerstone Energy Park in Waggaman, Louisiana.
If approved and funded, the future plant is expected to have a production capacity of over one million metric tons of phosphate fertilizers per year. This would also mark the first facility of its kind built in the United States since 1984.
Reducing American Dependence on Imports
The project comes amid a significant reliance by American farmers on imported phosphate fertilizers.
According to CHS and OCP North America, the United States currently imports about 40% of the phosphate fertilizers necessary to meet farmers’ demands. The new production capacity planned in Louisiana could potentially reduce this dependence by over 48%.
The goal is to enhance the security of fertilizer supply and bring production closer to American farmers.
For CHS, this initiative also represents an opportunity to create additional value for its members by leveraging domestic production integrated with the cooperative’s distribution network.
OCP to Provide Phosphoric Acid
As part of the future joint venture, OCP Group will supply the phosphoric acid needed for fertilizer production at the American site.
The Moroccan group will be able to rely on its expertise in phosphates and its global resources, while the finished products will be marketed and distributed by OCP North America and CHS.
CHS has a significant fertilizer distribution network serving cooperatives, distributors, and farmers across the United States.
Establishing the facility in Waggaman also offers a major logistical advantage. The site at Cornerstone Energy Park allows for easy access to raw materials and utilizes the Mississippi River transportation network for product distribution.
Nearly 1,000 Direct and Indirect Jobs Created
Beyond agricultural implications, the project is expected to generate significant economic benefits for Louisiana.
According to estimates from the partners, around 60 permanent high-value jobs could be created in Jefferson Parish, along with approximately 500 jobs during the construction phase.
The total impact of the project is estimated to involve 924 direct and related support jobs.
Subject to obtaining necessary permits and securing financing, the construction of the plant is expected to take up to 24 months.
A Project Supported by American Local Production Strategy
The project aligns directly with the desire of U.S. authorities to increase domestic fertilizer production capacity and strengthen supply security for farmers.
In this regard, a funding request has been submitted to the U.S. Department of Agriculture (USDA) under the Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) program.
This initiative aims to support investments that could bolster the national fertilizer supply and reduce vulnerabilities associated with imports.
OCP Strengthens Its Presence in the U.S. Market
For OCP North America, this project represents a critical step in developing its operations in the United States.
The future infrastructure would allow the Moroccan group to solidify its presence in a strategic agricultural market while directly contributing to securing the supply of agricultural nutrients.
The partnership with CHS also provides OCP with access to an extensive American network of cooperatives and distributors, strengthening the group’s positioning close to farmers.
A Commitment to the New Orleans Community
The two partners have also expressed their intention to support the economic and social development of the region.
CHS and OCP are committed to supporting charitable initiatives in the Greater New Orleans area, complementing the expected economic impact of the industrial project.
This approach aims to reinforce the local grounding of the project and support communities surrounding the future production site.
A Strategic Partnership for American Agriculture
With a potential capacity of over one million tons per year, the future Waggaman plant could become an important link in the American supply chain for phosphate fertilizers.
For OCP, the project is also a further demonstration of its internationalization efforts and its ability to partner with local players to develop infrastructure close to agricultural markets.
If the necessary approvals and funding are secured, this joint venture between OCP North America and CHS could mark the return of substantial phosphate fertilizer production facilities to the United States, more than four decades after the last of its kind was built.
