One of the Middle East’s leading lubricants companies is projecting a slight increase in production volume this year after a fall in output in 2009.

Al-Hamrani Fuchs Petroleum Saudi Arabia expects output to touch 146,000 tonnes, beating the 2009 level of 144,309 tonnes which had slided marginally from the previous year’s total of 145,000 tonnes.

The first half of this year recorded production of 72,000 tonnes, the company said.

While output dropped last year, there was no fall in sales revenues, and this year will be another year of growth, indicated general manager Sohail Shahid Khan.

“Business is getting better or rather stabilising and we see a slight growth,” said Khan. Sales revenues for 2010 are projected at SR890 million ($237.3 million) against SR875 million in the previous year and SR850 million in 2008.

According to Khan, exports account for 20 per cent of sales income. In bigger markets, the company has set up manufacturing units and distributorships.

Wide range
Al-Hamrani Fuchs produces engine, hydraulic and automotive oils and industrial grades and speciality products. It exports to other GCC states, North Africa, Iran and Pakistan, among other markets.

The shareholding is split between Al-Hamrani (68 per cent) and Fuchs Oil (32 per cent). The company has a subsidiary based in Dubai called Fuchs Oil Middle East which oversees a supply network in the region.

In recent years the company increased storage by adding a new 3,400 sq m warehouse and boosted tank capacity by 1,500 tonnes.

The company sources its base oils and packaging material within Saudi Arabia and imports some of its additives. 

Its facilities in Yanbu have the quality certification ISO 9002 and the environmental certification ISO 1401. The company receives the technical support of Fuchs Petrolub AG, Germany.

When the Al-Hamrani Group entered into a joint venture with Fuchs Petrolub AG, Germany, in 1995, it had already been in the lubricants business for 16 years.