MAG Lubricants ready to roll out international growth program
MAG Lubricants is preparing to embark on a global expansion plan following a multi-million dollar investment program.
The company, which specializes in automotive oils for petrol and diesel engines along with gear oil, industrial gear oil, hydraulic oil, and lithium and calcium complex grease, is set to more than double its international workforce.
The ambitious growth strategy for the Dubai-headquartered firm comes on the back of the new US$50 million lube blending plant that it recently opened.
MAG Lubricants, which services the marine and automotive sectors, currently employs 38 direct staff at its new facility with more than 100 employees in various support roles.
It is part of the bigger MAG Group, which was founded in Abu Dhabi in 1978. The parent company is facilitating the building process, which leaves MAG Lubricants strategically placed to achieve its growth goals.
The rapidly expanding organization is aiming to have 250 direct staff at the factory by 2015. The factory is based in Dubai’s Technopark meaning it is ideally situated for importing and exporting products. “We are all very proud of the new blending facility in Dubai’s Technopark that will be the flagship for our business for the next 25 years…,” said CEO Mahmoud-Al-Theraawi.
“It not only gives us the option to work on our own projects but it can also be subcontracted to other businesses which will help us to further develop a secondary revenue stream.”
MAG Lubricants made the announcement during Automechanika, the largest automotive aftermarket trade exhibition in the Middle East region.
Among the plans include strategic growth into new key markets, with plans firmly in place to operate in 50 countries globally and to simultaneously increase its distributor network within those zones.
Al-Theraawi is looking to the new factory to further leverage and increase the international reach of the company, which has been buoyed by a strong financial position as it posted a profit of US$120 million.
“It is an exciting time for MAG Lubricants with our focus now on a strategic global level,” he said.
“We are well placed to move into new untapped markets given our strong domestic presence in the UAE. International growth is the best way to take MAG Lubricants to a new level in terms of our stature and overall development.”
“Our immediate trading markets are of course the Middle East along with North and South Africa. We already have links with Vietnam and the Philippines and now its time to develop new partnerships and customers in new areas.”
MAG Group first entered the industrial sector through manufacturing automotive spare parts, filters and accessories before developing mineral grease as well as blending and packing various engine lubricants.
(June 16, 2013)