Phosphoric Acid, being the main raw material for DAP production is being imported from Morocco. To ensure the continuous supply of this strategic raw material to run our DAP plant at Karachi, Office Cherifien des Phosphates (OCP), Morocco, the biggest industrial group of Kingdom of Morocco and the Fauji Group
(Fauji Foundation, FFC and FFBL) entered into a joint venture for its uninterrupted supply. The company, named as Pakistan Maroc Phosphore S.A(PMP) costing 2030 million Moroccan Dirhams
(US $ 250 million) was formed at Morocco. The project has successfully been completed in record time and within the budget. Commercial production and shipment to FFBL started in April 2008 and May 2008 respectively. Plant is designed to produce 375,000 MT per year of Phos acid thus meeting the total requirement of DAP plant of FFBL. Surplus acid shall be sold in the international market.
The Project is one of its kinds with strategic significance of involving two of the largest business groups of two brotherly Muslim nations ie, Fauji Group of Pakistan and OCP Group of Morocco. Its formal inauguration was performed by His Majesty the King of Morocco in October 2008. Dignitaries from Pakistan also attended the ceremony.
Significant benefits associated with this project are:
Production of 375,000 metric tons of phosphoric acid per annum will not only ensure un-interrupted supply of raw material, catering the entire post-BMR demand of DAP requirement of FFBL, but would also be a source of profit in the form of selling out the surplus production. This, in turn will enhance FFBL earnings in the form of dividends.
This is the first ever foreign investment by the Fauji Group. Apart from its imminent contribution towards economic growth of Pakistan, it has added to the prestige of the Country. May also prove a gateway for others to invest in the international market. Long-term raw material supply guaranteed in an extremely turbulent international market.