We are thrilled to announce that Richful Lube Additive (HongKong) Ltd (“Richful Hong Kong”), a wholly-owned subsidiary of Xinxiang Richful Lube Additive Co Ltd (“Richful”), has entered into a partnership with Farabi Downstream Company (“Farabi”) of the Kingdom of Saudi Arabia (KSA) to form a new joint venture, tentatively named Richful Farabi Lube Additive Company (“Richful Farabi” or the “JV”). The new JV company is located in Yanbu, Kingdom of Saudi Arabia. Richful Hongkong will hold 60% share while Farabi will own the remaining 40% share.
This strategic move supports our long-term vision to expand global business operations, enhance regional customer support and strengthen our global competitiveness. The new joint venture will develop an advanced and integrated lubricant additives production base, strategically positioned to serve key markets across the Middle East, Africa and India. It will also provide competitive, high-performance products to regional and global customers.
The project will be developed in 2 to 3 phases, with an estimated total investment of approximately USD 246 million. Phase 1 investment is estimated to be USD 127 million and will consist of key components and additive packages production.
This new company not only reinforces our commitment to meeting the evolving needs of our customers but also represents a major step in expanding our global footprint. By localizing production, we aim to improve supply chain efficiency, reduce lead times, and deliver greater value to our customers.
We look forward to a successful collaboration with Farabi and contributing to the industrial growth of the Kingdom of Saudi Arabia.