OCI Global completes sale of Iowa Fertilizer Company to Koch

HOUSTON (ICIS)–Fertilizer producer OCI Global announced it has successfully completed the sale of its equity interests in Iowa Fertilizer Company (IFCO) for $3.6 billion to Koch Ag & Energy Solutions.

The producer said the closing of the deal involving the large-scale US greenfield nitrogen fertilizer facility marks a significant milestone in OCI’s strategy to unlock value for shareholders

Located in Wever, Iowa the plant was the first greenfield nitrogen fertilizer plant built in the US in over 25 years, and the largest private construction project in Iowa’s history, adding more than 3,500 jobs during the construction period.

The facility opened in 2017 and has the capacity to produce 3.5 million tonnes of nitrogen fertilizers and diesel exhaust fluid annually.

“This acquisition marks another significant investment in the growth of our fertilizer business,” said Mark Luetters, Koch Ag & Energy Solutions president.

“In the past 15 years, we have invested $2 billion in our North American production facilities to enhance reliability, expand production and improve logistics for our customers. This investment enhances our ability to serve customers long-term by providing additional flexibility to adapt to their nitrogen preferences.”

The Wever facility adds to the Koch Fertilizer holdings, which includes four nitrogen production facilities in the US and one in Canada plus an extensive terminal network.

The company and its affiliates also have partial ownership of three nitrogen facilities in Trinidad and Tobago, as well as a phosphate production facility in Morocco.

The sale was first announced last December and OCI said it is confident that under Koch’s stewardship, IFCO will be well positioned for its next phase of growth.

“This milestone further reinforces OCI’s standing and record as a successful developer, operator and investor. Looking ahead, we will continue to deploy our distinctive knowledge, management expertise and entrepreneurial spirt into further value accretive ventures,” said Nassef Sawiris, OCI executive chairman.