OCP North America, a subsidiary of Morocco’s OCP Group, and U.S. agricultural cooperative CHS have announced plans to establish a joint venture to build and operate a phosphate fertilizer production facility in Waggaman, Louisiana.
The investment could reach $450 million, while the future facility is expected to have an annual production capacity of more than one million tonnes of phosphate fertilizers. It would be the first such facility built in the United States since 1984.
The project is planned for the Cornerstone Energy Park in Waggaman, Jefferson Parish. Its development remains subject to regulatory approvals and the securing of the necessary financing. Construction could take up to 24 months once the required approvals are obtained.
Under the planned joint venture, OCP Group would supply phosphoric acid to the facility, while the fertilizers produced would be marketed and distributed by OCP North America and CHS through their respective networks to U.S. farmers, cooperatives and distributors.
The new production capacity is intended to strengthen domestic supplies of phosphate fertilizers in the United States, which currently imports around 40% of the phosphate fertilizers required by American farmers.
According to the project partners, the facility could help reduce U.S. dependence on imported phosphate fertilizers by more than 48%.
For CHS, the project represents an important step toward bringing fertilizer production closer to U.S. farmers and strengthening the resilience of the agricultural supply chain.
OCP North America, for its part, views the initiative as a major step in its commitment to American agriculture, by helping develop local production capacity and providing a more reliable supply of agricultural nutrients.
The project is also expected to generate a significant economic impact in Louisiana, creating around 60 permanent jobs in Jefferson Parish and approximately 500 construction-related jobs. Total direct and supporting employment could reach 924 positions over the course of the project.
The two partners have also submitted an application for potential funding under the U.S. Department of Agriculture’s Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) program, which aims to support the development of domestic fertilizer production.
The project comes as Washington seeks to strengthen domestic production of agricultural inputs and reduce the vulnerability of U.S. supply chains to disruptions in international markets.
For OCP, the investment also marks a further expansion of its presence in the North American market and strengthens its partnerships with U.S. agricultural stakeholders.
