Vanol FZE is preparing to unveil a lubricant blending plant in Dubai with capacity of 75,000 metric tons per year, a launch pad for its plan to enter the toll manufacturing business.
Located in the Jebel Ali free economic zone, the plant was conceived of in 2016, according to officials, who added that it took three years to build. The company did not disclose the cost of the project.
“We had a construction delay due to the pandemic, and currently we are working on other similar projects,” a Vanol spokesperson told Lube Report today.
Vanol is based in Dubai, and this is the company’s first blending plant.
Officials said the plant will focus on toll blending finished lubricants for marketing companies and that it offers bulk blending services, packaging in bulk, private labeling and bottle manufacturing. The facility can fill canisters ranging from 1 to 5 liters and barrels ranging from 20 to 280 liters.
The United Arab Emirates has one of the world’s largest surpluses of lubricant blending capacity, being home to a large number of companies that blend lubricants for export to other nations. Vanol officials said they recognize that this equates to competition for their new plant.
“We believe that there is still opportunity for a quality lubricant toll blending [business] in U.A.E.,” the spokesperson said. “This belief comes from the idea that all other blenders have brands of their own, [which] doesn’t give peace of mind to the third-party labels. If there is a dedicated quality blender, the third-party blenders will be more comfortable doing business with them.”
The location of the plant is easily accessible “and this brings savings in the form of logistics and taxes.”
Vanol collaborates with global companies such as Castrol , BP, Gulf Oil and Bahrain Petroleum. “Experienced professionals from these companies can also help toll blenders in marketing, branding, product design and architecture, as well as training of their sales teams and help them to establish their brand quickly,” the spokesperson said.