Enoc JV to Blend Lubes in Egypt

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Egypt’s Misr Petroleum has reached an agreement for the company’s joint venture with Emirates National Oil Co. to produce finished lubricants at Misr’s blending plant in Alexandria, Egypt.

The deal comes more than a year after the companies agreed to evaluate such an arrangement.

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Enoc officials said that manufacturing its lubricants within the country will boost its prospects for expanding sales in Egypt.

“Our ability to blend lubricants locally will not only ensure seamless production and supply but will immensely contribute to significant cost savings,” Enoc CEO Saif Humaid Al Falasi said in a news release.

Misr’s plant opened in 1995 and has capacity to make between 150,000 and 180,000 metric tons per year of finished lubes.

Egypt’s lubricant market is the third-largest in the Middle East and North Africa, and Enoc officials said they believe it offers opportunity for expansion.

“The Egyptian economy has been able to mitigate the negative ramifications of the COVID-19 pandemic, demonstrating its agility and resilience as the country continues to drive investments in critical infrastructure and employment opportunities,” Al Falasi said. “These factors instill confidence to invest in projects that serve the manufacturing and industrial sectors in Egypt and bolster our presence.”

Enoc and Misr announced in March of 2020 that they had agreed to evaluate an alliance to blend lubes at Misr’s plant. In 2019 the companies had agreed to create a joint venture that would serve as Enoc’s springboard to enter the Egyptian market.

Enoc is based in Dubai and operates its own blending plants in Fujairah and Jebel Ali, United Arab Emirates.

State-owned Misr is already one of the leading suppliers of lubricants in Egypt, marketing products under the Egypt, Protec and Vulcan brands.

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Africa    Egypt    Finished Lubricants    Market Topics    Middle East    Region    UAE