King Abdullah Economic City (KAEC) has signed a contract with Jeddah, Saudi Arabia-based Gulf Start Factory for Petroleum Industries to lease a 15,677-square-meter parcel of land in the Industrial Valley.

Established In May 2005, Gulf Start Factory for Petroleum Industries has an existing plant with a production capacity of 16,000 metric tons and the new facility is expected to more than double that to 35,000 metric tons by the end of 2016.

With construction set to begin later this year, the company’s facility is expected to commence production of motor oils and lubricants for sale in Saudi Arabia, as well as exports to countries in the Arab world and Africa through King Abdullah Port.

Mr. Fahd Al-Rasheed, Group CEO and Managing Director of KAEC, said that Gulf Start brings new skills to the city, thanks to its vast expertise in the manufacture of lubricants.

“Expanding in the field of light industries is part of the city’s desire to become a hub of varied, qualitative industries,” he said. “This also supports our strategic objective of creating alternative industries that meet the aspirations of a changing market.”

Eng. Saleh Bashanfar, General Manager of Gulf Start, said that the company’s decision to invest in KAEC’s Industrial Valley is part of its plans to expand into global markets. “Our decision to manufacture at the Industrial Valley came after we explored all possible investment opportunities and studied KAEC’s existing achievements, after which we concluded that the city is the best possible place to take our national and international investments. Gulf Start will be able to reach a wider range of consumers thanks to the strategic location of the Industrial Valley amid a comprehensive network of land and sea transport lines.”

Mr. Rayan Qutub, CEO of the Industrial Valley, welcomed Gulf Start and its staff, saying: “The city enjoys many advantages that have helped it attract a wide range of major national and global investors, some of which are in the region for the first time. To date we have succeeded in attracting 120 national, regional and global companies, mainly in the six industries that the Industrial Valley is focused on, which are food and consumer goods, pharmaceuticals, logistics, packaging, construction materials and automotive industries.”

George Morvey, Industry Manager Energy, Kline's Energy Practice, told OEM/Lube News "The Saudi Arabia total country finished lubricant demand in 2015 is estimated between 480-490 KT with Automotive 80% and Industrial 20%. Petromin, Shell, Fuchs, and ExxonMobil are the leading suppliers accounting for a combined market share of 80%."

Gulf Start Factory for Petroleum Industries are owners of the Neutron and Shield brands.

In May 2005, the Gulf Start Factory for Petrochemical Industries was established as a subsidiary of the Mohammed Omar Bashanfar Establishment. The company commenced production of motor oils of the Neutron brand, with long-term supply contracts with other companies. In 2012, the company launched its Shield brand of industrial-grade lubricants for modern automotive engines. The company exports 55% of its products to Iraq, Jordan, Egypt, Yemen, Morocco, Mauritania, Mali, and countries in South-West Africa.

Covering an area of 181 square kilometers and approximately 100 km north of Jeddah, KAEC is home to beachside districts which offer varied residential solutions that suit different levels of income; King Abdullah Port, set to be the region’s largest; Al-Hijaz district, home to one of Al-Haramain Railway’s major stations; and the Industrial Valley, where many major national and international corporations have set up their facilities.