Farabi and Richful Xinxiang Build Saudi Arabia's First Lubricant Additive Plant

Farabi Downstream Petrochemical Company (FDC) has signed a Memorandum of Understanding (MOU) with China's rich Xinxiang Company to establish Saudi Arabia's first comprehensive lubricant additive composition and additive packaging manufacturing plant. The agreement was signed on February 26, 2025, under the sponsorship of the Ministry of Energy (MOE), marking an important step in advancing the country's petrochemical industry.

The joint venture (JV) will develop the most advanced lubricant additive facility in Yanbu, Saudi Arabia, with the aim of manufacturing high-quality lubricant additives that meet global industry standards. This plan aligns with Saudi Arabia's broader strategy to enhance downstream investment, maximize the utilization of hydrocarbon resources, and promote economic diversification through import substitution and local value addition.

Richful Xinxiang, one of the major manufacturers of lubricant additives in China, provides extensive research and development expertise to its partners. The joint venture aims to create a globally competitive production hub for lubricant additives by leveraging Faraby's excellent manufacturing footprint in Saudi Arabia and wider regions.

The facility will produce a range of lubricant additives, including detergents, dispersants, Dialkyldithiophytes (ZDDPS), and antioxidants, to meet the growing demand in the automotive, industrial lubricant, and marine oil industries. This project represents Saudi Arabia's first fully integrated lubricant additive.

Farabi Downstream Petrochemicals Company (FDC) is a subsidiary of Farabi Petrochemicals Group, a leading Saudi Arabian company specializing in the production of petrochemical products. Farabi was founded in 2006 and is headquartered in Jubail Industrial City. It has positioned itself as the largest linear alkylbenzene (laboratory) producer in the Middle East.

The Farabi Group consists of multiple entities, including Farabi Petrochemical Company (FPC), Farabi Yanbu Petrochemical Company (FYPC), Farabi Downstream Company (FDC), Hadaf Internal Company (HADAF), and Farabi Marketing Company (FMC). These companies mainly operate in the industrial cities of Jubail and Yanbu in Saudi Arabia.

Farabi's product portfolio includes regular paraffin (NP), specialty oils, and solvents, which serve household and laundry care, industrial applications, power plants, as well as the oil and mining industries.

As part of its expansion strategy, Farabi has launched a project aimed at building other NP and laboratory complexes in Jubail's Yanbu and downstream derivative facilities. These developments aim to increase Farabi's production capacity to approximately 1 million tons per year across various product categories and grades.

In order to enhance its strategic global influence, Farabi has acquired a 50% stake in Great Orient Chemical (Taicang) Co., a renowned laboratory production plant located in Taicang, China. This acquisition marks Farabi's first overseas business, aimed at strengthening its foothold in the Asian market.

The above content is excerpted from the Lubricant Information Network

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