KAEC — 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,” said 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.” — SG