Petromin Corporation

Petromin Corporation
شركة بترومين
Company typeOil and Lubricant manufacturer
IndustryIndustrial, Engine Oil and Lubricants
Founded24 February 1968; 55 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/

Petromin Corporation is a Saudi Arabian multinational conglomerate operating in automotive services, mobility solutions and lubricants sectors. This includes industrial and automotive lubricants, vehicle sales and aftersales services, fuel retailing, vehicle distribution and complete mobility solutions.[1]  

Petromin operates internationally, including Egypt, Dubai, Malaysia, India, Pakistan etc. As one of the "Major Leading Players" of the Industrial and automotive lubricants sector, Petromin currently distributes its products to over 40 countries across the world, with a focus on the GCC, Middle East, Africa and Asia.[2][3]

History

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]

Petromin was initially destined to replace foreign-owned Aramco as the state's primary oil company. However, due to company inefficiencies, personal rivalries and corruption, a change of direction was exercised making Petromin responsible for statist oil development essentially, as the "Saudized" Aramco, henceforth[7][8]

Under the leadership of Dr Abdulhadi H. Taher,[9]Petromin grew multiple fold with tens of thousands of employees. At that point in time, the Ministry of Petroleum and Minerals was known as Petromin. This entity was essentially responsible for all oil exploration, refining, and distribution of all petroleum and mineral resources in the kingdom that was not in the domain of then US-controlled oil concessionaire Aramco.[10] After the Kingdom purchased Aramco from the Americans, Petromin and most of its industrial developments were infused into it.

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.[11][12][13]

Al-Dabbagh acquires Petromin Corporation

Prior to the acquisition, 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 the same year, it also became one of the first companies in Saudi Arabia to start employing women.[16]

In 2008, the company was renamed to its current name Petromin Corporation.[17]

In 2010 the Hinduja Group announced the launch of the initial public offering of Petromin.[18][19]Petromin’s owners planned to sell 30 percent of Petromin, the minimum float required in Saudi Arabia, through the IPO, as informed by Hinduja group. Hinduja also planned an IPO in Hong Kong for Gulf Oil Marine.[20][21]

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.[17][22]

Evolution of Petromin

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 solutions 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 complete mobility solutions by expanding into 8 different verticals including Electric Vehicles, logistics and fleet services, car maintenance service centres, and auto parts distribution among others.[23][24][25]

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, introducing state-of-the-art Petromin Express workshops, fuel station network, Electromin's EV charging solutions, and National Auto Parts products among other subsidiaries, in the countries.

In 2023, HPCL and Petromin started a joint venture Automin Car Services in India to establish HP-Petromin Express co-branded vehicle service centres.[26]

Business verticals

Petromin operates in smart mobility solutions including lubricant oils, car servicing, fuel retailing, car dealerships, advanced fleet management solutions, EV charging solutions and auto parts across the kingdom.[1][3]

Petrolube

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.[27]

Petrolube currently operates three main plants.[28] 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.[29] 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. With a production capacity of around 120,000 MT per year, it includes one of the most modern lubricant laboratories in Dubai. Petrolube also owns the Riyadh Blending Plant, which was commissioned in 1981, and has a production capacity of around 75,000 MT per year.[17][30]

National Motor Company

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.[31][32][33] In 2019, Petromin and Nissan extended the partnership.[34]

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).

National Car maintenance company

Petromin launched the National Car Maintenance Company with the aim of providing automotive aftersales services for a range of makes and models of cars. The company has touchpoints spread over KSA, Egypt, UAE, Malaysia, India and Pakistan spread over 700 outlets.[35]

The National Car Maintenance Company operates several lines of car service centers, including Petromin Express and Petromin Auto Care. Petromin Express is a chain of quick lube service centers, offering different parts, products and quick services to customers across Saudi Arabia, Dubai, Malaysia, India, Pakistan and Morocco. Petromin Auto care is a chain of general, mechanical and electrical repair service centers. Currently this chain operates 40 centers across Saudi Arabia.

Electromin

Electromin is a Smart Mobility solutions provider and E-mobility arm of Petromin Corporation. They offer technology-orientated eMaaS solutions for B2B and B2C clients, including passenger and commercial electric vehicles, their maintenance services, installation of EV charging infrastructure, along with multiple other EV-related services and products.[36]

They are the first company in the Kingdom to offer a public charging solution using SASO-approved chargers, and using these chargers they have installed the country's first public EV charging network across key locations in the country.[37]

Electromin has partnered with several international and local entities like Tawal, Siemens, ABB, Quantron etc. to make sustainable transportation accessible in Saudi Arabia. Some of their clients include Red Sea Global, PepsiCo and KAEC.[38][39][40][41]

National autoparts company

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.[23]

National Fuel Company

Petromin runs an integrated network of 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.[42][43]

National Transportation Solutions Company

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.[44][45]

PepsiCo and National Transportations Solutions Company (NTSC) signed an MoU and launched the first Electric Commercial delivery truck pilot in Saudi Arabia.[46]

Expansion and partnerships

Petromin entered a partnership with Nissan, becoming the official authorized distribution agent in Saudi Arabia.[47]

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.[48]

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.[49]

National Auto Parts Company (NAP), acquired SpareIt, an Indian auto-tech platform. Petromin's investment in SpareIt marks a cornerstone for their business development in India.[50]

In 2022, its subsidiary Electromin, formed a strategic partnership with Quantron AG.[24] 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.[51][52]

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.[53]

In 2023, Petromin Corporation and Emaar, the Economic City signed a long-term strategic partnership to provide KAEC with mobility and transport solutions that will be available to residents and visitors.[54]

Contribution to motorsports in Saudi Arabia

Petromin also signed a three-year partnership (2021-2023) with Saudi Motorsport Company.[55] 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.[56]

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. [57]

Awards and achievements

In May 2003, Petromin became one of the first companies in Saudi Arabia and the Middle East to obtain ISO Certification.[12]

In 2022, the company also received 4 prestigious awards at the 10th National Auto Awards, organized by PR Arabia. Sheikh Amr Al-Dabbagh won Automotive Man of the Year, National Motor Company won for Best Car Dealer, Jeep Grand Cherokee for Best Medium Family SUV, and RAM 1500 for Best Light truck.[58][59][60]

In 2022, Petromin Express was also awarded as the Automotive Quick Services Provider of the Year at the Automechanika Dubai Awards.[61]

In 2023, Electromin was listed as one of the Top 10 Sustainable Environment & Supply Of Essential Needs, by Forbes Middle East.[62]  

In 2023, Petromin Corporation won two awards at the Arabian Business KSA Excellence Awards. These include "Automotive Company of the Year" for Petromin Corporation and ''Smart Mobility Leadership Award'' for Electromin.[63]

In 2023, Petromin Express won two Golds at the Gulf Customer Experience Awards.[64]

References

  1. ^ a b "Petromin to build 240 gas stations in Kingdom". Arab News. 28 April 2017. Retrieved 20 September 2018.
  2. ^ "Global Lubricating Grease Market 2018". Chronicle India. 20 July 2018. Archived from the original on 20 September 2018. Retrieved 20 September 2018.
  3. ^ a b "The Story". Petromin Corporation. 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.
  9. ^ "Abdulhadi H. Taher". Saqi Books. Retrieved 25 February 2020.
  10. ^ "Saudi Aramco 2030 - Post IPO challenges". Springer. 2018. Retrieved 25 February 2020.
  11. ^ "Petromin's Jeddah plant gets OHSAS certification". Trade Arabia. 26 October 2017. Retrieved 20 September 2018.
  12. ^ a b "ISO Achievements". Petromin Corporation. Retrieved 20 September 2018.
  13. ^ "Petromin Integrated Management System Policy". Petromin Corporation. Retrieved 20 September 2018.
  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. ^ Yahya, Samar (15 September 2017). "Ensuring empowerment of women in Petromin". Saudigazette. Retrieved 4 January 2024.
  17. ^ a b c "Saudi Arabia's Dabbagh Group in talks to buy Hinduja's stake in Petromin JV". Domain-B. 9 April 2013. Retrieved 28 September 2018.
  18. ^ "Hindujas plan up to $1b Saudi IPO for Petromin". Gulf News Business. 3 June 2010. Retrieved 26 February 2020.
  19. ^ "Hindujas to raise $1 bn through Petromin IPO". The Economic Times. 3 June 2010. Retrieved 3 March 2020.
  20. ^ "Hindujas plan up to $1b Saudi IPO for Petromin". gulfnews.com. 3 June 2010. Retrieved 4 January 2024.
  21. ^ "Hindujas to raise $1 bn through Petromin IPO". The Economic Times. 3 June 2010. ISSN 0013-0389. Retrieved 4 January 2024.
  22. ^ "Saudi firm set to buy out Indian partner in lubricant venture: sources". Reuters. 9 April 2013. Retrieved 20 September 2018.
  23. ^ a b "Saudi lubricant firm Petromin Corp. launches multi-brand auto parts subsidiary". Arab News. 12 October 2022.
  24. ^ 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.
  25. ^ tradearabia.com http://tradearabia.com/touch/article/MTR/400933. Retrieved 23 November 2023. {cite web}: Missing or empty |title= (help)
  26. ^ "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.
  27. ^ "Saudi Arabia's Petromin Revives $1 Billion IPO Plan". Bloomberg. 13 January 2023. Retrieved 18 August 2023.
  28. ^ "Petrolube, BPCL Sign Agreement". Arab News. 1 February 2007.
  29. ^ "The List of Top Lubricant Companies in Saudi Arabia". Marcopolis. 30 April 2015. Retrieved 23 September 2018.
  30. ^ "Plants". Petromin Corporation. Retrieved 23 September 2018.
  31. ^ "Petromin Nissan Dealership". Petromin Corporation. Retrieved 26 September 2018.
  32. ^ "Petromin Corporation". Bloomberg L.P. 9 April 2017. Retrieved 26 September 2018.
  33. ^ "Nissan-Petromin plans to open 20 more showrooms in Kingdom". Arab News. 16 October 2016. Retrieved 26 September 2018.
  34. ^ "Nissan Saudi Arabia and Petromin Strengthen Relationship as New Agreement Signed". Zawya. 9 October 2019. Retrieved 3 March 2020.
  35. ^ MENAFN. "Petromin Launches State-of-Art Commercial Vehicle Care Centers to Support Saudi Transportation and Logistics Industry". menafn.com. Retrieved 3 January 2024.
  36. ^ "Electromin to launch KSA's first EV ultra-fast DC charging network across the Kingdom". Saudi Gazette. 9 July 2023. Retrieved 18 August 2023.
  37. ^ "Siemens to add to Kingdom's EV drive with supply of chargers to Electromin". Arab News. 20 November 2022. Retrieved 18 August 2023.
  38. ^ "Tawal signs strategic partnership with Electromin". Arab News. 9 February 2023. Retrieved 18 August 2023.
  39. ^ "Siemens to provide electric car charging in Saudi Arabia - electrive.com". Electrive. Retrieved 18 August 2023.
  40. ^ Release, Press. "Petromin and Electromin sign strategic partnership with Emaar Economic City". www.zawya.com. Retrieved 3 January 2024.
  41. ^ Technology, eVehicle (16 October 2023). "Quantron AG and Electromin Deliver 50 EV Trucks in Saudi Arabia". eVehicle Technology. Retrieved 3 January 2024.
  42. ^ "Petromin to build 240 gas stations in Kingdom". Arab News. 28 April 2017. Retrieved 23 September 2018.
  43. ^ "Gas Stations". Petromin Corporation. Retrieved 26 September 2018.
  44. ^ "SADAFCO partners with NTSC to implement zero-emission vehicles". Arab News. 4 October 2023.
  45. ^ "PepsiCo & NTSC to Launch First EV Delivery Truck in Saudi Arabia". Transport and Logistics ME. 15 February 2023.
  46. ^ "PepsiCo partners with NTSC to launch and pilot the first EV Delivery truck in the Kingdom". Zawya.
  47. ^ "Nissan enters into business partnership with Petromin". Saudigazette. 8 March 2016. Retrieved 2 January 2024.
  48. ^ "Petromin inks new partnership deal with Hyundai and Al-Majdouie". Arab News.
  49. ^ Alwazir, Wiam (1 July 2022). "GM: Driving the Kingdom's Automotive Innovation into the Future". USSBC.
  50. ^ "Petromin Corporation's unit acquires India's SpareIt". Al Jazeera Mubasher. 20 September 2022.
  51. ^ "Siemens to add to Kingdom's EV drive with supply of chargers to Electromin". Arab News. 20 November 2022.
  52. ^ "https://www.arabnews.com/node/2203026/business-economy". Arabian Business. {cite web}: External link in |title= (help)
  53. ^ Joseph, Shilpa Annie (30 August 2023). "Italy's Pirelli selects National Auto Parts to become its KSA distributor - GCC Business News". GCC Business News.
  54. ^ "Petromin to invest in KAEC's Industrial Valley". Arab News.
  55. ^ "Petromin Signs Partnership with the Saudi Motorsport Company". automobilsport.
  56. ^ "FIA World Touring Car championship ready for Saudi debut". Zawya. Retrieved 18 August 2023.
  57. ^ "Nissan KSA highlights importance of diversity and female empowerment in Saudi automotive market". Saudi Gazette. 12 March 2020. Retrieved 18 August 2023.
  58. ^ Release, Press. "Petromin's National Motor Company wins 'Best Automotive Dealer' award in the Kingdom for 2022". www.zawya.com. Retrieved 1 January 2024.
  59. ^ "Al-Dabbagh named automotive industry's 'Man of the Year'". tradearabia.com. Retrieved 1 January 2024.
  60. ^ "Al-Dabbagh Receives Man of the Year Award". Arab News. 27 April 2006. Retrieved 1 January 2024.
  61. ^ "Automechanika Dubai 2022 Awards – Platform To Recognise And Award Top Talent And High-Performing Organisations – Motorindia". Retrieved 1 January 2024.
  62. ^ "Most Innovative Companies In Saudi Arabia 2022" (PDF).
  63. ^ "Petromin sweeps two awards at Arabian Business KSA Excellence Awards 2023".
  64. ^ gulfcxawards.com https://gulfcxawards.com/previous-winners. Retrieved 1 January 2024. {cite web}: Missing or empty |title= (help)

External links