Moroccan-based OCP will expand its facilities in Brazil, building four more warehouses in the country.
These new facilities are in the states of Goias, Minas Gerais, Para and Santa Catarina, according to the OCP Group, a global provider of phosphate and derivatives. Currently, OCP has operations in the states of Mato Grosso, Maranhao, Bahia, Sao Paulo, Parana, and Rio Grande do Sul. The OCP marketing material does not show a timeline for the expansion plan, but according to the Arab Brazilian Chamber of Commerce, the facilities are excepted to begin operations in 2020.
The warehouses will stock phosphates produced by OCP in Morroco. The expansion will help insulate the company from eventual issues in Brazilian ports and higher costs. The timing to build the new warehouses is not optimal as Brazil is facing phosphates oversupply, and demand is scant for more phosphates.
OCP is an important fertilizer player in Brazil. It has 52pc of market share in total Brazilian phosphate rock imports and 34pc in phosphates imports.
By Kauanna Navarro