
A high-tech plant is to be set up in Saudi Arabia to make advanced lubricant products. Emaar The Economic City (Emaar.E.C) has signed an MoU with Saudi Total Lubricants Company (Satlub) to lease land in the industrial zone of King Abdullah Economic City (KAEC) to set up a manufacturing plant for producing advanced lubricant products.
Located in the KAEC Industrial Zone, the plant will be the first lubricant facility of Total in Saudi Arabia.
Total is one of the world’s leading oil and gas companies, and marks the evolution of KAEC as a prime driver of the manufacturing sector of the Kingdom.
Satlub is a joint venture of Total and Al Zahid Group, a diversified Saudi group.
Emaar.E.C, the Tadawul-listed company developing King Abdullah Economic City (KAEC), is the largest private sector-led mega-project in the region,
Dr Abdulraouf Mannaa, managing director and CEO, Emaar.E.C, signed the MoU with Jacques Souplet, regional director - Middle East and Central Asia, Total.
Dr Mannaa said: “KAEC is fast consolidating its position as a robust environment for manufacturing industries, with the dedicated Industrial Zone gaining huge international investor interest. Satlub is a leader in the lubricant industry and the MoU will pave the way for new regional growth opportunities for the company in the lubricant business.”
Souplet commented: “This MOU is a strategic move for Satlub in Saudi Arabia as it is the largest lubricant market in the Arabian Peninsula and Satlub is committed to establishing a strong and long-term presence in this market.
Satlub will manufacture and market the entire range of lubricants and specialty products for the automotive, industrial and marine sector within the kingdom and for future exports under the Total brand.
The state-of-the-art plant will be commissioned in two years and will be the most-modern blending facility using fully automated technologies. The initial production capacity of the plant will be 35,000 tonnes of finished products per year, with the potential for capacity expansion.
KAEC is the single largest private sector-led project in the region and enjoys a unique location on the Red Sea coast.
The project has six key components: the Sea Port, Industrial Zone, Central Business District (including the Financial District), Resort District, Educational Zone and Residential Communities. Work is progressing according to schedule on the various zones.
Emaar the Economic City is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world’s largest property developers, and a number of high profile investors from Saudi Arabia.