Libyan's investment arm in Africa, Libya-Africa Investment Portfolio, has signed a memorandum of understanding with Morocco's Office Cherifien de Phosphate (OCP) for the Moroccan company to build three fertiliser plants worth $1.0 billion.

OPC said that a first plant would produce 1.0 million tonnes of phospheric acid per year, with investment of $350 million, and a second plant to produce 800,000 tonnes of ammonia would cost $500 million. A third unit, with an annual capacity of 1.0 million of fertiliser, will cost $150 million. OPC gave no dates when the plants would be built.

An official close to the deal has been reported saying that the acid unit would be based in Morocco, the ammonia to be built in Libya and the fertiliser plant location has yet to be decided whether it would be built in Libya or Morocco.

Early this month, OCP signed a memorandum of understanding with Vietnam's Pterovietnam to build two fertiliser plants worth $600 million.

In February, OCP invited non-Moroccan investors to set up plants to help Morocco expand its fertiliser and chemical business.

OCP, with an annual output of 27.25 million tonnes of raw phosphate, has 43.5 percent of the world's phosphate market, 47.2 percent of the phosphoric acid market and 9.5 percent of fertiliser output, according to the company.