Lubref Recruits Producers for LubeHub

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Lubref Recruits Producers for LubeHub
Luberef's base oil plant in Yanbu’ al Bahr, Saudi Arabia. © Luberef

Luberef signed memorandums of understanding with several companies this month, agreeing to explore the possibility of constructing facilities to produce specialty lubricants or fluids at a lubricant hub it is developing in Yanbu’al Bahr, Saudi Arabia.

The companies involved produce lubricants, electrical transformer oils, white oils and wax products. Officials said the initiatives are part of a broader plan to expand Luberef’s existing facilities in Yanbu into a hub of lubricant-related manufacturing activities.

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“We look forward to enhancing our efforts in achieving the goals of the Kingdom’s Vision 2030 in localizing specialized products, increasing internal investment opportunities, economic diversification and long-term growth,” Luberef President and CEO Tariq Naeem told the Saudi Press Agency, according to an article on Al Arabiyah’s website.

A Nov. 10 English language news release about one of the memorandums said Apar Industries Ltd. is considering an investment to make transformer fluids and white oil. Headquartered in Mumbai, Apar supplies electrical transformers as well as electrical transformer fluids, claiming to be the world’s third-largest supplier of the latter. In recent years it also began supplying automotive lubricants.

Apar currently operates four manufacturing plants and does business in 125 countries.

The other memorandums are with Petromin Corp, National Oil and Chemical Co. and Day Candle. Petromin has historically been a manufacturer and marketer of lubricants but in the past decade has acquired auto dealerships, a trucking fleet, fuel stations and automobile maintenance service shops. It claims to be the largest lubricant supplier in Saudi Arabia.

National Oil and Chemical, known as ChemaOil, is based in Al Khobar, Saudi Arabia and produces dielectric and transformer fluids, process oils, white oils, drilling fluids and detergent and water treatment chemicals. Day Candle is headquartered in Jeddah and produces candles and other wax products.

A second Nov. 10 news release about the agreements with Petromin, ChemaOil and Day Candle did not specify the types of products they are considering for Yanbu. None of the companies have made final investment decisions.

Luberef already operates a base oil plant in Yanbu, as well as at Jeddah. Its plans for the LubeHub call for additional facilities operated by it and other companies making lubricants and ancillary fluids using Luberef base stocks. It also calls for construction of facilities to make lubricant additives.

The company says Yanbu is well-positioned to supply the Middle East, Africa and South Asia.

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Market Topics    Middle East    Plants & Facilities    Region    Saudi Arabia    Transformer Oils    White Oils