SK Lubricants, the lubricant oil production unit of South Korea’s top oil refiner SK Innovation, will begin exporting its own lubricant oil brand ZIC to Saudi Arabia.
The company announced Monday that it has signed a licensing deal with Rabigh First Lubricants Co.― a subsidiary of Saudi-based pipe coating company Globetech ― to supply ZIC products.
Until the agreement expires in 2020, Rabigh First Lubricants will pay a brand royalty for all profits related to ZIC sales. The Korean lubricant firm will also provide its special lubricant formula to Rabigh First Lubricants.
The deal marks the first time for a Korean firm to export its self-developed lubricant oil product overseas. In the past, Korean lubricant companies had relied mainly on imports from global oil firms, including Esso and Gulf, to secure their lubricant supplies.
SK Lubricants is also entering Saudi Arabia’s lubricants market ― 94 percent of which is dominated largely by the state-run Petromin Corp. and major foreign lubricant makers such as Fuchs, Shell and Exxon Mobil ― with the new licensing deal.
As SK begins exporting to Saudi Arabia, the company said it “plans to further expand into other markets in the Middle East and North Africa.”
