KING ABDULLAH ECONOMIC CITY’S INDUSTRIAL VALLEY ADDS PETROMIN TO PORTFOLIO OF INVESTORS
PETROMIN TO BUILD LOGISTICS SERVICE CENTER FOR NISSAN VEHICLES
King Abdullah Economic City, January 11th, 2017 – King Abdullah Economic City (KAEC) has succeeded in adding Petromin to the growing list of investors in the Industrial Valley. According to the deal signed by the two sides just before the start of the New Year the Saudi lubricants giant will lease 193,917 square meters of land to build a logistics service center for Nissan vehicles.
“King Abdullah Economic City’s efforts are focused on boosting the competitiveness of the Industrial Valley as a regional manufacturing and logistics hub,” stated Fahd Al-Rasheed, Group CEO and Managing Director of KAEC, as he welcomed the company into the city and the Industrial Valley. “The unrivaled quality of our infrastructure, along with the continual reviews and enhancements of procedures and facilities presented to investors, are sure to attract national and global manufacturing and logistics giants, which, in turn, will give us further impetus to press on with achieving the strategic vision the government has set forth for this modern city.”
Petromin is one of the Kingdom’s leading producers of automotive lubricants and automotive service providers. The company is active in five major sectors: the mass production and retail sales of automotive and industrial lubricants; Petromin Express, the company’s quick automotive service arm; automotive maintenance and repair; retail sales of automotive fuels through the company’s gas stations; and automotive retail – the company is the official Nissan Motors dealer in Saudi Arabia.
Samir Nawar, Chief Executive Officer of Petromin, underlined the importance of the two sides working together as a team and building robust relations that bode well for the performance and investments of both.
“This is why we have long-term investment in King Abdullah Economic City at the very top of our priorities,” he said. “There are so many favorable aspects that make the Industrial Valley the perfect place for us to expand our investments, including the city’s strategic location, the commencement of operations at the hugely capable King Abdullah Port, and the sheer ease of doing business thanks to the record time in obtaining the necessary permits and licensing from the Economic Cities Authority.”
With more than 600 service centers throughout the Kingdom, Petromin Express is the Kingdom’s biggest provider of quick automotive services. The company is the world’s eighth biggest automotive service network.
Petromin’s operations in the Kingdom date back to 1968, when it started production of high-quality oils. The company now has more than 4,000 employees, and exports its products to over 35 countries in the Middle East, North Africa, and Asia, including all of the five other Gulf Cooperation Council member states.
Expressing his happiness with the new partnership, Rayan Qutub, CEO of the Industrial Valley, said that the deal reflects the growing demand for space in the Industrial Valley from major national corporations and adds significant value to the automotive sector.
“The automotive sector, which includes vehicle dealers, distributors, spare parts suppliers, commercial vehicle assembly corporations and lubricants manufacturers, is a runaway success in the Industrial Valley,” he said. “It is a natural outcome that the Industrial Valley is developing as the primary base of operations for this sector, thanks to the Industrial Valley’s strategic location on the coast of the Red Sea, its logistical access, the upcoming re-export zone, and the opening of the roll-on/roll-off pier at King Abdullah Port.”
He went on to say that the Industrial Valley has become the number one choice for corporations that seek to start or expand their business in the region.
“The fact that Petromin has joined us is a manifestation of the level of trust KAEC has grown to enjoy. So far, we have been able to attract 120 of the biggest corporations in the country, the region, and the world, of which 25 have already begun production and 35 others are in the process of building their facilities.”
About King Abdullah Economic City
King Abdullah Economic City is one of the biggest privately owned and run projects in the world. Its centerpiece is a comprehensive, 181-square-kilometer city on the eastern coast of the Red Sea, just north of Jeddah. The city is home to seaside neighborhoods that offer a variety of residential solutions to suit various levels of income, as well as the King Abdullah Port, which is set to be one of the largest seaports in the world. The Hijaz District has one of the stations of the Haramain High Speed Rail Project, and the 55km2 Industrial Valley continues to attract top national and international corporations. Listed on the Saudi Stock Exchange (Tadawul,) Emaar Economic City, the primary developer of the city, is a publicly traded Saudi corporation established in 2006.
Petromin is the leading manufacturer of lubricants and automotive service provider in the Middle East, Asia, and Africa.
The company has five business units:
- Mass production of automotive and industrial lubricants
- Petromin Express, the company’s automotive service network
- Automotive service and repair
- Fuel retail
- Automotive dealership (the company is the Nissan Motors dealer in the Kingdom.)
The company’s staff comprises more than 4,000 employees, and exports its products to more than 35 countries in the Arabian Gulf, the Middle East, Africa, and Asia.
Established in 1968, the company later became a joint venture between U.S. oil giant Exxon Mobil and Saudi Aramco. In 2007, Petromin was taken over by Advanced Petroleum Services. Investments and restructuring helped grow and diversify the company’s activities to the point where it was able to offer a comprehensive range of automotive-specific services.
The lubricants sector remains the company’s core business, with which Petromin enjoys leading status in the industry, providing all sorts of motor oils and automotive and industrial lubricants in the Middle East and North Africa. Out of its state-of-the-art processing plant in Jeddah, along with two others in Riyadh and Dubai, the company ships world-class products that exceed the expectations of private automobile owners, corporate fleets, and industrial and government fleet operators.
Petromin Express provides fast, reliable, and confidence-inspiring quick service and oil change through a sprawling network of automotive service centers, which now count more than 600 centers that make for simply unrivaled coverage of every major city, town, and village in the Kingdom, serving well over 10,000 customers per day. Petromin is ranked eighth among the world’s biggest automotive service networks in the world.
In fuel retail, Petromin is one of 10 corporations authorized to build and operate gas stations along expressways. With its own vision for advanced gas stations, the company opened a number of full-service gas stations for motorists and tourists, including fuel retail sales, Petromin Express, Primo retail shops, fast food outlets, coffee shops, and ATM points.
As for automotive retail, in March of last year, Nissan Motors selected Petromin to be its official dealer for Nissan vehicles in the Kingdom. The company now is planning to open a network of showrooms, service centers, and spare parts outlets all over the Kingdom.