A determined marketing campaign by the Middle East’s leading lubricants manufacturer has led to a 22.65 per cent increase in sales.

Alhamrani-Fuchs Petroleum Saudi Arabia Ltd (AFPSA) reported SR602 million ($160.5 million) in total sales including SR142 million in exports in 2006. The Jeddah-based company exports to 20 countries including all the GCC states.
Total sales in 2005 were SR491 million, of which SR123 million was accounted for by exports.
“In bigger markets we are putting manufacturing facilities with distributorships,” a company spokesman said without elaborating.
AFPSA’s product range covers high-quality lubricants, greases and other speciality products for varied applications. Its Yanbu factory produces lubricants for cars and other auto vehicles, the steel industry, vehicle and machinery construction, the mining industry and agricultural equipment.
The product range includes the least sophisticated engine oil to the most sophisticated lubricants and greases. Products are also tailor-made to the requirements of customers.
The spokesman commented that a significant feature of 2006 was a rapid increase in raw material cost but that it had “stabilised” in the current year.
The raw materials are base oil, which it procures locally, additives which it sources within the country and abroad and packaging which is bought locally.
The Alhamrani Group entered into a joint venture with lubricants giant Fuchs Petrolub AG Germany in 1995 after operating in the lubricants business since 1979.
“State-of-the art production facilities certified by ISO 9002 guarantee a quality level that satisfies our customers’ demands,” the spokesman said. One of the company’s accomplishments is the award of the ISO 14001 environment-related certification, which it stresses is significant considering that oil and grease are associated with environmental pollution
The company produces in excess of 120,000 tonnes per year, of which 60,000 tonnes is sold within Saudi Arabia. A little over half of the remainder is exported with the balance constituting blending for other companies.
The lubricant market in the kingdom was said to be worth between SR2 billion and SR2.5 billion annually or nearly 330,000 tonnes. A senior official said last year that the company had captured 21 per cent of the domestic market and it hoped to increase the share by 3 per cent every year.
As Saudi Arabia has joined the World Trade Organisation, lubricant producers in the kingdom can expect greater competition from imports. However, car sales, for example, are also rising.
One of the significant developments at AFPSA was the launch in 1999 of ‘one stop’ car care centres, a network that has since grown to some 25 centres. Services offered there relate to oils and filters, tyres, batteries and basic under-the-chassis repairs and maintenance.
AFPSA is also the first company of its kind in the region to offer business-to-business online services.
Alhamrani-Fuchs Petroleum was the first to launch Supersyn 5W30 API SM motor oil in Saudi Arabia. The product was specially designed to deliver high performance in all American, European and Japanese modern gasoline or diesel car engines with or without turbo charge.
This motor oil is blended from refined base oils and high-tech additives at the Alhamrani Fuchs blending plant in Yanbu.  Fuchs Supersyn API SM is approved and recommended by top car manufacturers such as Daimler Chrysler, BMW and VW.
The sales surge within Saudi Arabia was also a consequence of a massive corporate and brand awareness campaign that the company started throughout the kingdom in 2004 to promote and enhance Fuchs products using a road show team. At the time the team mainly highlighted the Titan Fuchs multi-grade diesel engine oil 15W40, but the campaign helped to generate great interest in AFSPA and its products as a whole.
Around that time, AFSPA started manufacturing the new Titan Supersyn SL 0W30 that superseded all fully synthetic lubricants viscosity grades introduced worldwide, with unprecedented high performance standards that provided low friction engine oil for all American, European and Japanese passenger cars.
The product has approvals of major performance car manufacturers Porsche, Mercedes Benz, BMW and the VW group.
These car manufacturers had certified that Supersyn SL 0W30 reduced fuel consumption, provided outstanding engine cleanliness, gave excellent protection against wear in all engines by providing low evaporation loss and finally ensured excellent performance at cold starting.
As well as lubricants and greases, the Alhamrani group operates in the automotive, financial services, integrated technology solutions, building materials and systems, drums and industrial packaging, heavy equipment and machinery, and real estate sectors.