DUBAI, United Arab Emirates – Emirates Lube Oil Co (Elco) confirmed to Lube Report it commenced operations at a new grease plant located in Umm al-Quwain in October last year.
Elco also created a joint venture with Gurgaon, India-based Siddharth Greases and Lubes Pvt., National Lube Oil FZ, which is marketing greases under Elcos flagship National Lube brand. Elco claims the newly commissioned grease plant is one of the most sophisticated plants in the Middle East, and according to Elco Marketing Manager Ali Farah, the plant is versatile enough to produce a wide range of greases. It is one of most advanced grease factories in the region, and it can produce any kind of grease.
Farah said the plant can produce 12,000 metric tons of grease per year, on par with regional competitors like Total Marketing Middle East, which has the same capacity to make grease at its U.A.E. lube blending plant.
Farah indicated the joint venture gives Siddharth Petro rights to market at least some of the plants output.
With regard to the Siddharth JV, it is a pure business venture and has nothing to do with the ownership of the plant, he said.
Elco says the investment should help it consolidate its position in the grease market. The plant can handle a variety of raw materials and is equipped with a Stratco contactor reactor and a Charlotte colloid mill that can process greases made lithium, sodium, and calcium soap base thickeners, as well as non-soap greases. The plant also has a Cornell Versator mechanical vacuum deaerator, degasser and defoamer – used to remove entrapped air, foam or gas from liquids under high vacuum – and sufficient agitator kettles. Officials said it can produce food-grade grease.
Elcos JV with Siddharth is perplexing to some in the industry. Elco already has a solid financial base and is strong in greases, so I am surprised, said T.R. Kumar, managing director of U.A.E.-based Tesla Lubricants.
Farah said National Lube FZ will market greases from the plant on three continents, but that the facility is also available for toll blending. The main customers are our markets in Africa, Asia and Australia, and major lubricants producers who are looking for a reliable grease blender, as we have excess capacity, he said.