Morocco’s state-owned OCP Group, the world’s leading producer of phosphate and fertilizers, has entered into a landmark contract with Shanghai Zhenhua Heavy Industries (ZPMC). The agreement, valued at MAD 2.05 billion ($205 million), involves the supply of advanced bulk cargo handling equipment for the Port of Safi. The delivery of this equipment is scheduled to occur within a 30-month timeframe from the contract’s effective date, signaling a significant investment in enhancing Morocco’s port infrastructure.

According to Chinese media outlet Yicai, the deal was announced on December 30 by ZPMC, a Shanghai-based heavy equipment manufacturer. In its statement, ZPMC highlighted that this contract would significantly contribute to its global market presence and business growth. Renowned for its expertise in heavy-duty equipment, ZPMC has maintained a dominant position in the global market for quayside container cranes, with a remarkable 70% market share for 26 consecutive years.

ZPMC’s recent financial performance underscores its industry leadership. The company reported a 35% year-on-year increase in net profit, reaching CNY 433 million ($59.3 million) in the first nine months of 2024. Its revenue also experienced a robust growth of 13.7%, totaling CNY 25.4 billion ($3.6 billion). As one of the largest heavy equipment manufacturers globally, ZPMC operates six expansive production bases in Shanghai and Nantong. These facilities cover a combined area of 6.67 million square meters, including 10 kilometers of coastline, enabling the company to distribute its products to 106 countries and regions worldwide.

For OCP Group, this partnership with ZPMC reflects its continued commitment to operational excellence and strategic investments. The company has reported strong financial results, with revenues reaching MAD 69 billion ($6.9 billion) by September 2024, compared to MAD 61 billion ($6.1 billion) during the same period in 2023. This growth has been driven by favorable global market conditions, particularly rising phosphate fertilizer prices due to supply constraints in China and increased demand from key markets such as Europe and Africa.

OCP has also maintained a robust EBITDA margin of 39% in 2024, significantly above the industry average. Its phosphoric acid revenue has seen substantial growth, fueled by strong demand in Europe and India. Additionally, demand in Brazil has shown marked improvement, particularly for specialized products like Triple Superphosphate, during the third quarter of 2024.

As a vertically integrated leader in the phosphate industry, OCP oversees the entire value chain, from mining and production to transportation and sales. This agreement with ZPMC enhances OCP’s capabilities, supporting its mission to remain at the forefront of the global phosphate and fertilizer market while strengthening Morocco’s industrial infrastructure.