Morocco’s OCP Group and CHS, America’s leading farmer-owned cooperative, are preparing to build and operate a phosphate fertilizer production facility at the Cornerstone Energy Park located in Waggaman, Louisiana. The two partners have set up a joint venture and anticipate up to $450 million investment to improve supply reliability for American farmers. The new plant […]
Morocco’s OCP Group and CHS, America’s leading farmer-owned cooperative, are preparing to build and operate a phosphate fertilizer production facility at the Cornerstone Energy Park located in Waggaman, Louisiana.
The two partners have set up a joint venture and anticipate up to $450 million investment to improve supply reliability for American farmers.
The new plant expected to produce over 1 million metric tons of phosphate-based fertilizer annually. The facility will be the first of its kind constructed in the United States since 1984.
American farmers use phosphate fertilizer to grow the crops that fuel and feed the world. However, phosphate reserves in the country are declining and today the U.S. imports approximately 40% of the phosphate-based fertilizer that is used to meet farmer demand. The potential to bring this new capacity online could reduce U.S. dependency on imported phosphate-based fertilizer by more than 48%, significantly strengthening the domestic fertilizer supply chain.
“This is an exciting moment for American agriculture,” said Jay Debertin, president and CEO of CHS. “As a farmer-owned cooperative, we exist to help farmers succeed. Together with OCP North America, we have the opportunity to build the first phosphate fertilizer plant in the U.S. in more than 40 years. This investment has the potential to create more value for our owners by bringing fertilizer production closer to the American farmer and the cooperative network.”
The OCP Group will supply phosphoric acid to the new facility, drawing on its global phosphate expertise and resources. Finished fertilizer products will be distributed through both OCP North America and CHS, which serves cooperatives, retailers and farmers across the United States through its extensive wholesale and retail crop nutrients network.
The new fertilizer plant’s expected location within the Cornerstone Energy Park in Waggaman helps ensure access to raw materials and the ability to transport products via the Mississippi River system.
“This project represents a milestone in OCP North America’s commitment to serving American agriculture,” said Kevin Kimm, CEO of OCP North America. “Together with CHS, we aim to build lasting infrastructure that strengthens U.S. food security and delivers a reliable, domestically produced supply of the crop nutrients American farmers need.”
Once approved, the project is expected to create approximately 60 permanent, high impact jobs in Jefferson Parish along with 500 construction jobs. The parties estimate that the project will have a total job impact of 924 direct and services-support jobs. This is expected to bring real, positive economic and community impact to the state of Louisiana.
“This announcement by CHS and OCP North America further solidifies the Cornerstone Energy Park and Jefferson Parish as key economic development locations attracting global industry,” said Matthew Sokol, president and CEO of Cornerstone Chemical Company.
