Leading private sector lubricants firm Alhamrani Fuchs Petroleum Saudi Arabia is moving closer towards a SR1 billion ($266 million) sales turnover, company figures show.

The company reported sales of SR890 million in 2010, up from SR875 million, but the first-quarter performance raises the possibility that the milestone will be reached this year if the pace is maintained. The company announced it realised SR280 million in sales for the first three months of 2011.

The company supplies engine oil, hydraulic oil, automotive oil, industrial grade products and speciality products. Production last year was 146,000 tonnes against 144,309 tonnes in the previous year.

Some 20 per cent of sales comes from the export market, said general manager for industrial and commercial sales Sohail Shahid Khan. 'We export to GCC countries, other adjoining countries in the region, North Africa and other African states. In bigger markets we are putting manufacturing facilities with distributorships.'

The company added a new warehouse of 3,400 sq m and raised its tank storage by 1,500 tonnes at a cost of $2.5 million.

'Alhamrani Fuchs does not plan factory expansions but seeks to go deeper into the niche market of lubricant specialities not only to increase volumes but also to secure the existing clientele,' said Khan.

The company buys its base oil and additives for manufacturing from local and overseas sources. For packaging it relies on local producers.

Technical back-up

It is providing technical back-up to its partners in Sudan, Tanzania, Syria, Egypt, Jordan, Morocco and Palestine. Sudan, Tanzania, Syria and Morocco have state-of-the-art plants in operation, producing Fuchs brand of international standards.

The company has a subsidiary in Dubai named Fuchs Oil Middle East Ltd (Fomel). Fomel currently exports to 26 countries across Africa, Asia and the CIS states.

The company’s head office in Jeddah

'Business is getting better or rather stabilising and we see a slight growth,' said Khan.

Alhamrani Fuchs Saudi Arabia is the largest independent producer of lubricants in the region and is recognised for its innovative and technically superior lubricants and other related speciality products.

The Alhamrani Group has been in the lubricants business since 1979 but in 1995 it formed a joint venture with Fuchs Petrolub AG of Germany, one of the largest independent producers and marketers of lubricants in the world.

The construction of a lube blending plant in Yanbu, the biggest of its kind in the Middle East and Africa, helped it play a greater role in the lubricants and speciality products market.

The company also offers blending/manufacturing services at its Yanbu Lube plant for multinationals and well-known brands.

One of its market-promoting initiatives was the launch of one-stop car care centres in 1998, aimed at providing a new standard of professional car care and personalised service in highly pleasant surroundings. The one-stop network is expected to grow to 100 centres in 2012 in Saudi Arabia.