Oman’s Al-Mohtesham Trading and Contracting LLC has signed an agreement to build a 2.4 million tonne lubricant plant in Saudi Arabia’s Jazan Industrial City. The company currently collects 80,000 tonnes of waste oil a year and processes these into re-refined lubricating base oils at two locations—Dubai and Oman.
“This will be our third lubricant plant in the GCC [Gulf Cooperation Council],” said Faiz Mohammed, managing director. He signed the agreement recently with Prince Turki bin Mohammed bin Nasser, director of international trade at Saudi Arabia’s Ministry of Commerce and Industry, and supervisor of Jazan Industrial City.
“The main attraction of this Jazan venture is that if major companies are ready to invest and transfer their technology, the government will pay them 75% of their project cost in soft loans for 20 years,” Mohammed said.
The plant cost is estimated at SAR100 million (USD26.6 million).
The first phase of Jazan Industrial City was established in 2009. The vision for this SAR75 billion (USD19.9 billion) project is that it will be a state-of-the-art city housing many industries, including pharmaceuticals, petrochemicals and automobiles.