SK Lubricants enters Saudi Arabian market
SK Lubricants will begin exporting ZIC, its own brand of lubricants, to Saudi Arabia, after signing a licensing deal with Rabigh First Lubricants Co. A subsidiary of Saudi-based pipe coating company Globetech, Rabigh, will supply ZIC products in Saudi Arabia.
Until the agreement expires in 2020, Rabigh First Lubricants will pay a royalty for all profits related to ZIC sales.
Saudi Arabia’s lubricants market is dominated by state-owned Petromin Corp., which has 94% market share. The rest of the market is dominated by major oil companies Shell and ExxonMobil and Fuchs Petrolub, the largest independent lube oil company.
The company said it “plans to further expand into other markets in the Middle East and North Africa.”