Yunigreen to build hydrofinishing units to produce Group II base oils in Saudi Arabia

Yunigreen has announced the construction of two lube oil hydrofinishing units in Yanbu Industrial City, Saudi Arabia, to produce Group II base oils from waste oil.

The new units, each with a production capacity of 300 metric tonnes per day, will be operational by July 2027. The base oils produced at this facility will support the growing demand for high quality and sustainable lubricant products.

Yunigreen signed a memorandum of understanding (MOU) with Studi Tecnologie Progetti (STP), an engineering firm based in Rome, Italy, known for its expertise in re-refined base oil technology. The collaboration aims to bring advanced engineering solutions to Yunigreen’s base oil production. 

“By converting existing Group I re-refinery production to Group II and Group II+, Yunigreen supports lubricant producers’ carbon reduction initiatives without compromising product quality,” said Abdullah Al Harbi, CEO of Yunigreen.

Founded in 1979, Yunigreen has an annual production capacity of 218,000 kilotonnes of re-refined base oils (RRBO), making it a key player in the Middle East and North Africa (MENA) region.  Yunigreen, through its parent company Yanbu United Company for Trade and Industry (YUNITCO), has its own waste oil collection arm. The company specialises in the collection, transportation, and recycling of oil wastes, petroleum residues, and other industrial waste. 

YUNITCO’s operations are centred in Yanbu Industrial City, supplying products to more than 49 countries across Asia, Africa, Europe, and Latin America. Though it operates as a private entity, YUNITCO benefits from the supportive business environment in Saudi Arabia, particularly in the industrial hub of Yanbu, where the government encourages industrial growth and environmental initiatives.