International Phosphoric Acid Joint Venture Will Invest $200 Million in Africa

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Office Cherifien des Phosphates (OCP) (Casablanca, Morocco) has entered into a joint venture agreement with Fauji Fertilizer Company, Limited (Rawalpindi, Pakistan) to construct a new phosphoric acid production unit at the existing site in Jorf Lasfar, Morocco owned by OCP. Construction of the $200 million unit is expected to commence in the spring of 2006. Jacobs Engineering Group, Incorporated (NYSE:JEC) was selected as the engineering and construction contractor for the 375,000 metric tons a year phosphoric unit and will handle the project from its offices in Lakeland, Florida. Completion is anticipated during the second half of 2007.

This joint venture project illuminates the growing trend of globalization. Throughout the industrialized world, more companies are investing in foreign lands and forging relationships with foreign corporations to stay competitive in business. Three companies from as many continents are involved in this large investment of time and money to construct the new unit. Wise investment in the continent is the surest way to utilize Africa’s abundant natural resources and immense labor pool. Chris Easley, a senior researcher in Industrialinfo.com’s international department said, “Two companies that are a world apart, but sharing a similar interest are relying on each other’s expertise to see this project through. Plus, with a world-renowned E&C firm like Jacobs Engineering wanting to be involved in the design and construction demonstrates one of the many positive and sure ways to develop Africa. It might not be through politics or humanitarian aid that raises Africa’s worth or inspires the citizens, but it might be through private investments, creating tangible jobs, thereby raising the quality of life for all."

Phosphoric acid has a variety of uses ranging from fertilizers to flavor enhancers. It is used as an intermediate chemical in the production of phosphate fertilizers, agricultural feeds, polishes, soaps and detergents. It is also be utilized in the food and beverage processing industry as a preservative, clarifier and acidifier. It is also applied in rubber processing, as a soil stabilizer and as a catalyst in producing propylene, butene, ethyl benzene, and cumene.

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