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Bright economic outlook bodes well for lubricants sector in the Kingdom
Published in The Saudi Gazette on 23 - 05 - 2010

The demand for lubricants will shift to a higher gear as the outlook for global automotive industry improves.
One study reported recently that world demand for lubricants is forecast to advance 2.3 percent to 41.7 million metric tons in 2010, driven by increasing rates of motor vehicle sales as well as by a rebound in manufacturing and other industrial activity worldwide.
Against this backdrop, lubricant production in Saudi Arabia, the biggest oil producer and exporter, will definitely expand, an official of a Jeddah-based lubricant company said.
In a recent visit to the lube oil blending plant of The Arabian Petroleum Supply Co. (APSCO) - the largest and longest serving private sector company of this nature within the Kingdom - the media were shown the different stages of producing lubricant. And APSCO's automated production system stands out being the first factory in the Kingdom to receive ISO9001-2000 Quality Management Certification.
Engineer Salem Al-Attas, chief production engineer of APSCO plant, said the company is currently working on increasing its production capacity in the coming period in order to increase its share in the target markets and to open new markets in the region, as well as to be able “to meet the fierce competition in the local market.”
APSCO's Quality Laboratory, considered one of the most advanced quality test labs in the Middle East, is equipped with up-to-date testing equipment and technologies to ensure high quality products that comply with the highest standards of Exxon Mobil lubricant plants around the world and to get accurate and reliable results in assisting the production lines in the plant.
At present, the company has a production capacity of 75,000 metric tons per year, producing different lube oil types for Mobil, Caterpillar, Toyota, AC Delco, Total brands for the local market aside from its own APSCO brand that is basically exported to other Middle Eastern and African countries.
In the average, the plant has a daily output of 200 metric tons of finished products, the official said.
Abdullah Mohammed Baawad, warehouse & logistic manager, APSCO lube oil blending plant, told the Saudi Gazette that the capacity at times exceeds above 90,000 metric tons as demand arises.
The plant has modern laboratories to ensure that all products comply with the international standards and specifications, as well as to test and analysis all products and raw material used for the production of lubricants and grease.
Researches were done at its laboratory to ensure that lubricants and grease manufactured by APSCO plant are reliable and suitable to Saudi Arabian climate and topography conditions.


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