Farabi and Richful to build Saudi Arabia’s first lube additive plant

Farabi Downstream Petrochemical Company (FDC) has signed a memorandum of understanding (MoU) with China’s Xinxiang Richful Lube Additive Co., Ltd. (Richful) to establish Saudi Arabia’s first integrated lubricant additive component and additive package manufacturing plant. The agreement, signed on 26 February 2025, is under the patronage of the Ministry of Energy (MoE) and marks a significant step in advancing the country’s petrochemical sector.

The joint venture (JV) will develop a state-of-the-art lubricant additive facility in Yanbu, Saudi Arabia, aimed at manufacturing high-quality lubricant additives that meet global industry standards. This initiative aligns with Saudi Arabia’s broader strategy to enhance downstream investments, maximise hydrocarbon resource utilisation, and promote economic diversification through import substitution and local value addition.

Richful, one of China’s leading manufacturers of lubricant additives, brings extensive research and development expertise to the partnership. By leveraging Farabi’s well-established manufacturing footprint within Saudi Arabia and the broader region, the JV aims to create a globally competitive production hub for lubricant additives.

The facility will produce a range of lubricant additives, including detergents, dispersants, zinc dialkyldithiophosphates (ZDDPs), and antioxidants, catering to the growing needs of the automotive, industrial lubricants, and marine oil industries. The project represents the first fully integrated lubricant additive complex in Saudi Arabia.

Farabi Downstream Petrochemical Company (FDC) is a subsidiary of Farabi Petrochemicals Group, a leading Saudi Arabian company specialising in the production of petrochemical products. Established in 2006 and headquartered in Jubail Industrial City, Farabi has positioned itself as the largest producer of linear alkylbenzene (LAB) in the Middle East. 

The Farabi Group comprises several entities, including Farabi Petrochemicals Company (FPC), Farabi Yanbu Petrochemicals Company (FYPC), Farabi Downstream Company (FDC), HADAF International Energy Company (HADAF), and Farabi Marketing Company (FMC). These companies operate primarily in the industrial cities of Jubail and Yanbu in Saudi Arabia. 

Farabi’s product portfolio includes normal paraffin (NP), specialty oils, and solvents, serving various sectors such as home and laundry care, industrial applications, power plants, and the oil field and mining industries.

As part of its expansion strategy, Farabi has initiated projects to construct additional NP and LAB complexes in Yanbu and downstream derivatives facilities in Jubail. These developments aim to increase Farabi’s production capacity to approximately 1 million tons per annum across various product categories and grades. 

In a strategic move to enhance its global presence, Farabi acquired a 50% stake in Great Orient Chemical (Taicang) Co., a prominent LAB production plant located in Taicang, China. This acquisition marks Farabi’s first overseas venture, aiming to strengthen its foothold in the Asian market.