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OCI Global completes sale of fertilizer facility to Koch

This divestiture, part of OCI's plan to optimize its asset portfolio, has generated $9.5 billion in gross cash proceeds.

Buisness Executives Shaking Hands Pixabay

OCI Global a prominent producer and distributor of hydrogen products, has finalized the divestment of its Iowa Fertilizer Company LLC in Wever, Iowa, to Koch Ag & Energy Solutions (KAES). The transaction, signed on December 18, 2023, followed necessary regulatory and shareholder approvals, marking a pivotal step in OCI's strategic endeavors.

This sale is part of OCI’s broader strategy to optimize its asset portfolio, having generated an impressive $9.5 billion in gross cash proceeds from recent divestitures, including Fertiglobe and OCI Clean Ammonia. The proceeds will primarily facilitate significant debt reduction and substantial capital return to OCI's shareholders.

Iowa Fertilizer Company, recognized as the first greenfield nitrogen fertilizer plant constructed in the U.S. in over a quarter-century, represents the largest private construction project in Iowa's history. Since beginning operations in April 2017, the facility has significantly bolstered the local agriculture industry, creating over 3,500 jobs during its construction phase and continuing to impact the regional economy positively.

Nassef Sawiris, Executive Chairman of OCI, highlighted the transaction's role in reinforcing OCI’s commitment to shareholder value creation. "The successful closing of the IFCO transaction underscores our continuous drive to enhance shareholder value and our reputation as a proficient developer and investor," Sawiris stated.

Ahmed El Hoshy, CEO of OCI, praised the accomplishments of the IFCO team in transforming a simple cornfield into a top-tier nitrogen production facility. "The transition of IFCO to KAES’s capable hands ensures the facility is ideally positioned for future growth, benefiting from KAES’s strategic and geographical advantages," El Hoshy added.

With this strategic divestiture, OCI continues to focus on advancing its global operations and exploring new investment opportunities, aiming to maintain and expand its market leadership in the hydrogen and nitrogen sectors.

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