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Doha – Morocco’s state-owned phosphate and fertilizer producer OCP Group has signed a significant contract worth MAD 2.05 billion ($205 million) with Shanghai Zhenhua Heavy Industries (ZPMC) for the supply of bulk cargo handling equipment to the Port of Safi.
The equipment is set to be delivered within a 30-month timeframe after the contract takes effect.
According to Chinese media outlet Yicai, the deal was announced by ZPMC on December 30, with the Shanghai-based company stating that the contract is expected to positively impact its business development and strengthen its position in the global market.
ZPMC, which maintains a 70% global market share in quayside container cranes for 26 consecutive years, reported a 35% increase in net profit to CNY 433 million ($59.3 million) in the first nine months of 2024, while its revenue rose 13.7% to CNY 25.4 billion ($3.6 billion).
Read also: OCP to Invest Over $14 Billion During 2025-2027 Period
The equipment supplier is one of the world’s largest heavy-duty equipment manufacturers and a state-owned company listed on the Shanghai Stock Exchange.
The company operates six production bases across Shanghai and Nantong, with facilities spanning 6.67 million square meters and 10 kilometers of coastline. Its products are present in 106 countries and regions worldwide.
The agreement comes as OCP Group reports strong financial performance, with revenues reaching MAD 69 billion ($6.9 billion) as of September 2024, showing a significant increase from MAD 61 billion ($6.1 billion) in the same period of the previous year.
The group’s growth has been driven by favorable market conditions, including increased phosphate fertilizer prices due to supply constraints from China and strong demand in key markets, particularly in Europe and Africa.
The company has maintained a solid earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 39% in 2024, above the industry average.
OCP’s phosphoric acid revenue has seen substantial growth, driven by higher demand in Europe and India.
The company has also noted significant improvement in demand from Brazil in the third quarter of 2024, particularly in specialized products such as Triple Superphosphate.
As the world’s leading phosphate and phosphate derivatives manufacturer, OCP maintains a comprehensive operation covering the entire phosphate value chain from mining to transportation and sales.
