Alhamrani-Fuchs has had a good start this year and a senior official says the company plans to get more into the niche market of lubricant specialities.

General manager Sohail Shahid Khan said such a step was aimed at not only increasing volumes but also securing the existing clientele. “Business is getting better or rather stabilising and we see a slight growth,” he said.

The Jeddah-based company manufactures at its Yanbu plant engine oil, hydraulic oil, automotive oil, industrial grades and speciality products and does not plan any expansions for now.  Some 30 per cent of the output is consumed within Saudi Arabia with the remainder going to 26 countries in the Middle East and Africa.

Production dipped in 2011 to 124,000 tonnes against 146,000 tonnes in the previous year, and the first quarter of the current year saw 34,000 tonnes of product emerging from the company’s lines.

Notwithstanding the lower output of 2011, the sales value for the year grew to SR1.02 billion against SR890 million in the year before. 2012 appears promising with Quarter 1 witnessing a sales turnover of SR289 million and an increase in productivity. Among significant developments of recent years was an expansion in storage capacity with the addition of a new warehouse of 3,400 sq m and an increase in tank storage by 1,500 tonnes, the improvements costing $2.5 million.