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Petromin Corporation

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The Petromin Corporation is a Saudi Arabian lubricants and automotive services company, operating in lubricant oils including manufacturer, industrial, and automotive oils and lubricants, car servicing (Petromin Express), fuel retailing and car dealerships.[1][2] The company is one of the "Major Leading Players" of the lubricating grease Industry.[3]

Petromin Corporation
شركة بترومين
Company typeOil and Lubricant manufacturer
IndustryIndustrial, Engine Oil and Lubricants
Founded24 February 1968; 56 years ago (1968-02-24)
Headquarters
Jeddah
,
Saudi Arabia
Area served
Middle East, Africa and expanding to Asia
ProductsEngine Oil, Petrol Fuel, Diesel Oil, Hydraulic fluid
ServicesAutomotive & Lubricants services
Websitehttp://www.petromin.com/

History

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The company was established by a royal decree on 24 February 1968[4] The initial name of the company was Petromin Lubricating Oil Company and was renamed to Saudi Arabian Lubricating Oil Company in 1997. It was established as a joint venture between Saudi Aramco and Mobil investments and started production at its first blending plant in Jeddah, in 1970.[5][6] The first director general of the company was Abdulhadi Taher.[4]

The company was initially destined to replace foreign-owned Aramco as the states primary oil company, but due to company inefficiencies, personal rivalries and corruption, instead it was decided to make it "Saudized" Aramco.[7][8]

In May 2003, Petromin became one of the first companies to obtain international ISO Certification for their Quality and Integrated Management Systems (ISO 9001:2015). The company has since been re-certified in 2014 and received the OHSAS 18001:2007 certification for their Health and Safety Management Systems at the Jeddah plant in 2017.[9][10][11]

It was established to be the statist oil development of Saudi Arabia because at that time Aramco was 100% American owned. Under the responsibility of Dr. Abdulhadi H. Taher,[12] Petromin became an industrial behemoth with tens of thousands of employees. It was responsible for all oil exploration, refining, and distribution of all petroleum and mineral resources in the kingdom that were not in the domain of then US-controlled oil concessionaire Aramco.[13] After the Kingdom purchased Aramco from the americans, Petromin and most of its industrial developments were infused into it.

Joint-venture between Dabbagh Group and Gulf Oil Corporation

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Petromin was a joint venture between Mobil Investments (29% stake) and Saudi Aramco (71% stake), an affiliate of ExxonMobil with an annual sale of 80,000 metric tons and an annual turnover of $200 million. In 2007 it was purchased by Dabbagh Group and Gulf Oil Corporation, a subsidiary of Indian Hinduja Group, for $200 million.[14] Dabbagh took a 51% stake and Hinduja a 49% stake in the new joint venture.[15]

In 2008, the company was renamed to its current name Petromin Corporation.[16]

In 2010 the Hinduja Group announced the launch of the initial public offering of Petromin.[17][18]

In 2013, The Dabbagh group purchased the Hinduja stake based on a total valuation of more than $700 million, made by Deutsche Bank, who assisted in the deal.[16][19]

In 2015, Petromin signed a five-year partnership with Hyundai and Al-Majdouie, to serve its oils at all Hyundai centers in the region and to supply diesel engine oils to Al-Majdouie Logistics.[20]

In 2017, the company employed around 5,000 people.[1][2][21] Petromin was one of the first companies in Saudi Arabia to start employing women in 2007.[22]

The company produces industrial and non-industrial oil, lubricants and other associated products. The main product categories are gasoline, diesel engine oils, gear and transmission oil, greases, industrial, marine and specialty products. In these categories the company produces more than 150 different products.[16][23]

The company currently distributes its products to over 35 countries across the world, with a focus in the GCC, Middle East, Africa and Asia.[24][2]

Petromin Express is a chain of quick lube service centers throughout Saudi Arabia, offering different parts, products and services. The chain operates more than 700 outlets.[25]

The company also runs a gas station network across the country, which is partly connected to Petromin Express service station, offering combined automotive services. Petromin is one of only two companies allowed to set up fuel stations along highways in Saudi Arabia. In 2017 the company first announced its plans to build 240 gas stations across the Kingdom.[1][20][21][26]

Petromin entered a partnership with Nissan, becoming the official authorized distribution agent in Saudi Arabia. The first showroom was opened in Riyadh on 16 October 2016.[27][28][29] In 2019, Petromin and Nissan extended the partnership.[30]

Evolution of Petromin

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Petromin Corporation began diversifying its business portfolio in the early 2000s. In addition to the original lubricant business, the company expanded into the vehicle maintenance industry by introducing Gulf Express in 2001, which was later renamed to Petromin Express - a quick automotive services network that served as its first step into the automotive sector.

Furthermore, Petromin entered the General Electrical and Mechanical Repair services sector in 2012, under the brand name Petromin Auto Care, offering maintenance for all makes and models of vehicles. In the same year, Petromin also launched its first fuel station in the Kingdom of Saudi Arabia.

In 2016, Petromin further expanded its operations into vehicle distribution by acquiring the Nissan brand dealership in Saudi Arabia. These initiatives allowed the company to enter the automotive market as a provider of both vehicles and services.

Petromin evolved from a lubricant manufacturer to an automotive group offering electric vehicles, logistics and fleet services, car maintenance service centres, and auto parts distribution among others.[31][32][33]

They have expanded their operations to several countries in the region including, UAE, Egypt, India, Malaysia and Pakistan. Recent expansions include joint ventures with major companies like HPCL, DRB HICOM Malaysia, and acquisition of SpareIt.

In 2023, HPCL and Petromin started a joint venture Automin Car Services in India to establish HP-Petromin Express co-branded vehicle service centres.[34]

Activities

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The Jeddah plant of Petromin is one of the biggest oil and mobilization plants in the Middle East and Petromin Corporation is the largest maker of lubricants in Saudi Arabia, with a present production capacity of 300,000 metric tons.[35]

Business verticals

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Petrolube

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Petrolube has a 43% market share in Saudi Arabia and exports Petromin Oils to over 40 countries. They produce more than 150 industrial and automotive lubricants and other associated products. The main product categories include gasoline, diesel engine oils, gear and transmission oil, greases, industrial, marine, and specialty products.[36]

Petrolube currently operates three main plants.[37] The Jeddah Lube oil blending and Grease plant is now one of the largest manufacturer and distributor of lubricants in the Middle East, and Petromin Corporation is the largest maker of lubricants in Saudi Arabia, with a present production capacity of 250,000 MT annually.[38] It was originally erected in 1968, with a blending capacity of 70,000 MT and upgraded in 2011 to its current capacity. The facilities encompass the Jubail lubricants and grease manufacturing plant, which was built in 1985, with a production capacity of 6,000 MT of grease.

Petrolube's latest oil blending plant was commissioned in 2007 and is based in Dubai, UAE. Petrolube also owns the Riyadh Blending Plan, which was commissioned in 1981, and has a production capacity of around 75,000 MT per year. The plant works in cooperation with the drum manufacturing company Greif, Inc., allowing a direct filling of Petromins products.[16][39]

National MOTOR Company

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National Motor Company are authorized dealers of Nissan vehicles, Stellantis brands (Abarth, Alfa Romeo, Chrysler, Fiat, Dodge, Jeep, Mopar and RAM) and Foton commercial vehicles in Saudi Arabia.

Petromin entered a partnership with Nissan in 2016, becoming the official authorized distribution dealer in Saudi Arabia. The first showroom was opened in Riyadh on 16 October 2016.[29][28][27] In 2019, Petromin and Nissan extended the partnership.[30]

In 2021, Petromin started the distribution of vehicles from 8 distinct Stellantis brands through a partnership with Stellantis Middle East. Subsequently, they inaugurated a mega-facility designed to encompass sales, servicing, and provision of spare parts (3S).

Electromin

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Electromin offer passenger and commercial electric vehicles, their maintenance services, installation of EV charging infrastructure, along with multiple other EV-related services and products.[40]

National autoparts company

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In 2022, Petromin introduced National Auto Parts Co., a subsidiary that sell multi-brand auto parts through an online platform to wholesalers and independent garages.[31]

National Fuel Company

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Petromin runs gas station across Saudi Arabia and Egypt, which is connected to café drivethrus, ATMs, convenience stores, Petromin Express quick automotive service center, Petromin auto care workshops, and tire change services at its forecourts.[21][26]

National Transportation Solutions Company

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NTSC offers Fleet Maintenance, Fleet Management, Operational Leasing, Petromin Commercial Vehicle Care (PCVC), Diesel Vehicle Service, and Repair. As a subsidiary of Petromin group, NTSC extends its services to clients throughout KSA.[41][42]

PepsiCo and National Transportations Solutions Company (NTSC) signed an MoU and launched the first Electric Commercial delivery truck pilot in Saudi Arabia.[43]

Expansion and partnerships

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In 2015, Petromin signed a five-year partnership with Hyundai and Al-Majdouie, to serve its oils at all Hyundai centres in the region and to supply diesel engine oils to Al-Majdouie Logistics.[44]

In 2022, General Motors designated Petromin as the new wholesale distributor for ACDelco in the Kingdom. ACDelco is a subsidiary of General Motors and is the region’s primary supplier of aftermarket products.[45]

National Auto Parts Company (NAP), acquired SpareIt, an Indian auto-tech platform.[46]

In 2022, its subsidiary Electromin, formed a strategic partnership with Quantron AG.[32] The partnership initially involved the distribution of Quantron's QARGO 4 EV light truck in Saudi Arabia. Siemens also provided EV chargers to Electromin, Saudi Arabia's e-mobility unit, for their region-wide charging network.[47][48]

In 2023, National Auto Parts signed a distribution agreement with Pirelli, which made NAP a new distributor for Pirelli tyres in the Kingdom of Saudi Arabia.[49]

Contribution to motorsports in Saudi Arabia

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Petromin also signed a three-year partnership (2021-2023) with Saudi Motorsport Company.[50] and became Title Naming Rights Partner of the Saudi Supercar Club (SSC). As part of this partnership, they sponsored the WTCR FIA World Touring Car Cup debut at Jeddah Corniche Circuit in, December 2022.[51]

In 2023, Petromin Nissan announced a strategic partnership with Nissan Formula E Team for three years. With this partnership, they became the official innovation partner of the Nissan Formula E Team for the Diriyah E-PRIX. [52]

References

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  1. ^ a b c "Petromin to build 240 gas stations in Kingdom". Arab News. 28 April 2017. Retrieved 20 September 2018.
  2. ^ a b c "The Story". Petromin Corporation. Retrieved 20 September 2018.
  3. ^ "Global Lubricating Grease Market 2018". Chronicle India. 20 July 2018. Archived from the original on 20 September 2018. Retrieved 20 September 2018.
  4. ^ a b Hertog, Steffen (2008). "Petromin: the slow death of statist oil development in Saudi Arabia" (PDF). Business History. 50 (5): 645–667. doi:10.1080/00076790802246087. S2CID 154116939. Retrieved 16 September 2013.
  5. ^ Official Website Company Information
  6. ^ www.tradeboss.com/ Petromin Corporation Petromin Corporation Trade Boss. Retrieved 7 July 2014.
  7. ^ "The one thing in Saudi Arabia that works well is under threat". Reuters. 4 February 2016. Retrieved 20 September 2018.
  8. ^ "Petromin: the slow death of statist oil development in Saudi Arabia" (PDF). LSE Research Online. September 2008. Retrieved 20 September 2018.
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  10. ^ "ISO Achievements". Petromin Corporation. Retrieved 20 September 2018.
  11. ^ "Petromin Integrated Management System Policy". Petromin Corporation. Retrieved 20 September 2018.
  12. ^ "Abdulhadi H. Taher". Saqi Books. Retrieved 25 February 2020.
  13. ^ "Saudi Aramco 2030 - Post IPO challenges". Springer. 2018. Retrieved 25 February 2020.
  14. ^ "Petromin Sold to Dabbagh-Hinduja Alliance for $200m". Arab News. 30 January 2020. Retrieved 25 February 2020.
  15. ^ "Dabbagh Group to buy Gulf Oil in Saudi Arabian lubricant venture". VCCircle. 9 April 2013. Retrieved 25 February 2020.
  16. ^ a b c d "Saudi Arabia's Dabbagh Group in talks to buy Hinduja's stake in Petromin JV". Domain-B. 9 April 2013. Retrieved 28 September 2018.
  17. ^ "Hindujas plan up to $1b Saudi IPO for Petromin". Gulf News Business. 3 June 2010. Retrieved 26 February 2020.
  18. ^ "Hindujas to raise $1 bn through Petromin IPO". The Economic Times. 3 June 2010. Retrieved 3 March 2020.
  19. ^ "Saudi firm set to buy out Indian partner in lubricant venture: sources". Reuters. 9 April 2013. Archived from the original on 20 September 2018. Retrieved 20 September 2018.
  20. ^ a b "Petromin inks new partnership deal with Hyundai and Al-Majdouie". Arab News. 11 April 2015. Retrieved 23 September 2018.
  21. ^ a b c "Petromin to build 240 gas stations in Kingdom". Arab News. 28 April 2017. Retrieved 23 September 2018.
  22. ^ "Ensuring empowerment of women in Petromin". Sudi Gazette. 15 September 2017. Retrieved 23 September 2018.
  23. ^ "Products, Specialty Products". Petromin Corporation. Retrieved 23 September 2018.
  24. ^ "50 Years of Leadership and Excellence". Petromin. Retrieved 23 September 2018.
  25. ^ "Petromin Express". Petromin Corporation. Retrieved 26 September 2018.
  26. ^ a b "Gas Stations". Petromin Corporation. Retrieved 26 September 2018.
  27. ^ a b "Nissan-Petromin plans to open 20 more showrooms in Kingdom". Arab News. 16 October 2016. Retrieved 26 September 2018.
  28. ^ a b "Petromin Corporation". Bloomberg L.P. 9 April 2017. Retrieved 26 September 2018.
  29. ^ a b "Petromin Nissan Dealership". Petromin Corporation. Retrieved 26 September 2018.
  30. ^ a b "Nissan Saudi Arabia and Petromin Strengthen Relationship as New Agreement Signed". Zawya. 9 October 2019. Retrieved 3 March 2020.
  31. ^ a b "Saudi lubricant firm Petromin Corp. launches multi-brand auto parts subsidiary". Arab News. 12 October 2022.
  32. ^ a b World, Automotive (9 November 2022). "Electromin and Quantron expand their business through a strategic long-term distribution partnership in Saudi Arabia". Automotive World.
  33. ^ "Petromin arm NAP invests in Indian auto-tech startup SpareIt". tradearabia.com. Retrieved 23 November 2023.
  34. ^ "HPCL partners Saudi Arabia's Automin Car Services to introduce co-branded HP-Petromin vehicle service centres in India". Financialexpress. 19 June 2023. Retrieved 23 November 2023.
  35. ^ "Hinduja Group Plans $1 Billion Saudi IPO of Lubes Blender Petromin". OEM/Lube News. 6 (22). 7 June 2010.
  36. ^ "Saudi Arabia's Petromin Revives $1 Billion IPO Plan". Bloomberg. 13 January 2023. Retrieved 18 August 2023.
  37. ^ "Petrolube, BPCL Sign Agreement". Arab News. 1 February 2007.
  38. ^ "The List of Top Lubricant Companies in Saudi Arabia". Marcopolis. 30 April 2015. Retrieved 23 September 2018.
  39. ^ "Plants". Petromin Corporation. Retrieved 23 September 2018.
  40. ^ "Electromin to launch KSA's first EV ultra-fast DC charging network across the Kingdom". Saudi Gazette. 9 July 2023. Retrieved 18 August 2023.
  41. ^ "SADAFCO partners with NTSC to implement zero-emission vehicles". Arab News. 4 October 2023.
  42. ^ "PepsiCo & NTSC to Launch First EV Delivery Truck in Saudi Arabia". Transport and Logistics ME. 15 February 2023.
  43. ^ "PepsiCo partners with NTSC to launch and pilot the first EV Delivery truck in the Kingdom". Zawya.
  44. ^ "Petromin inks new partnership deal with Hyundai and Al-Majdouie". Arab News.
  45. ^ Alwazir, Albara'a (1 July 2022). "GM: Driving the Kingdom's Automotive Innovation into the Future". USSBC.
  46. ^ "Petromin Corporation's unit acquires India's SpareIt". Al Jazeera Mubasher. 20 September 2022.
  47. ^ "Saudi Arabia's Electromin to receive EV chargers by Siemens amid kingdom's sustainability efforts". Arab News. 20 November 2022.
  48. ^ "https://www.arabnews.com/node/2203026/business-economy". Arabian Business. {{cite web}}: External link in |title= (help)
  49. ^ Joseph, Shilpa Annie (30 August 2023). "Italy's Pirelli selects National Auto Parts to become its KSA distributor - GCC Business News". GCC Business News.
  50. ^ "Petromin Signs Partnership with the Saudi Motorsport Company". automobilsport. Archived from the original on 18 August 2023.{{cite web}}: CS1 maint: unfit URL (link)
  51. ^ "FIA World Touring Car championship ready for Saudi debut". Zawya. Retrieved 18 August 2023.
  52. ^ "Nissan KSA highlights importance of diversity and female empowerment in Saudi automotive market". Saudi Gazette. 12 March 2020. Retrieved 18 August 2023.
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