Total recently inaugurated two lubricants blending plants, one on the Red Sea coast of Saudi Arabia, and the other in Tianjin in northern China.
The two new plants will allow Total to keep pace with the strong growth in its sales of automotive and industrial lubricants, a market that is forecast to grow by 20 percent to 2022, Philippe Charleux, vice president of Total Lubricants, said in a news post on Totals web site. They will secure our supply in the fast-growing Africa/Middle East and Asia regions in particular. The company said it sold 1.9 million tons of automotive and industrial lubricants in 2012 in 150 countries, ranking sixth in the sector. Totals aim is to step up development in the automotive and industrial lubricant segment, lifting global market share from under 4 percent at the end of 2012 to at least 5 percent by 2022.
Saudi Total Lubricants Co.s blending plant in Saudi Arabia is a 65,000 square foot facility with 25,000 metric tons per year capacity, and it will produce automotive and industrial lubricants. Located in the Industrial Valley in King Abdullah Economic City, 120 kilometers north of Jeddah, the plant features a fully automated blending system. The investment cost was not disclosed.
This is a major step towards improving the companys efficiency so that we can be the first choice in the Saudi market, Momar Nguer, senior vice president of Africa/Middle East for Total marketing and services, said in an Oct. 30 news release. With the establishment of this plant, the company aims to enhance its opportunities for growth in Saudi Arabia. The decision to establish this plant was based on a thorough study of the growing lubricants market in [the Kingdom of Saudi Arabia], which is propelled by one of the fastest-growing and most stable economies in the world.
Nizar Raydan, managing director of Saudi Total Lubricants, said the company invested in the site for a variety of reasons. The first of these is direct access to a huge seaport that has immense potential, Raydan said in the news release. The second is that [King Abdullah Economic City] has a highly develop basic infrastructure and very advanced utilities.
Saudi Total Lubricants is a joint venture formed by Total Group (51 percent) and Zahid Holding Group (49 percent) in 2007.
On Oct. 31, Total China inaugurated its 30 million (U.S. $40.6 million) Tianjin blending plant with up to 200,000 tons per year capacity. The 44,000 square meter plant will supply sectors such as the automotive industry, industrial market and original equipment manufacturer sector. In a news release, the company said the Tianjin plant will focus on supplying northern China, while Totals existing plants in Guangzhou and Zhenjiang will cover southern and eastern China.
Bertrand de La Noue, general representative of Total in China noted that, in 2012, China became Totals largest lubricants market worldwide. This new plant is another example that showcases Totals determination and confidence in the Chinese market.