In the Yanbu Industrial City by the Persian Gulf, an invisible black bloodline is quietly connecting between the two energy giants. When India's precision refining technology meets Saudi Arabia's top crude oil production capacity, the signing of a long-term base oil supply agreement not only locks in Apar Industrial Group's raw material lifeline in the Middle East specialty oil market, but also injects the strongest industrial blood into this rising LubeHUB lubricant industry park.

Consolidate the local soil layout in the central and eastern regions

Apar Industries Limited announced that its wholly-owned Middle East subsidiary has signed a base oil supply agreement with Luberef, a subsidiary of Saudi Aramco.

Relying on this long-term supply contract, the LubeHUB lubricant industrial park production line in Yanbu, Saudi Arabia will have stable raw materials for manufacturing transformer oil and various special lubricants. The enterprise stated that the cooperation will enable direct local procurement of base oil and on-site processing of special oil products, stabilize its own localization production layout in the Middle East, and lay a solid foundation for the long-term development of the special oil business.

From Memorandum to Long Term Contract

Both parties signed a memorandum of cooperation as early as May 2022 to jointly investigate the construction of transformer oil and white oil production plants in the LubeHUB park, in order to enhance Saudi Arabia's independent supply capacity for special oil products. Currently, Apar has not disclosed whether this supply contract is related to the planned factory production and supporting facilities.

LubeHUB is a professional lubricant industry park created by Luberef, adjacent to its Yanbu production base. Enterprises entering the park can directly obtain the base oil and by-products produced in the park through pipelines as production raw materials. Luberef's core business is base oil refining, with Saudi Aramco holding a majority stake and Jadewa Industrial Investment Company holding the remaining shares. Keywords: Saudi Aramco, Middle East

Expanding production and investing in the future track

According to the financial report, for the fiscal year ending March 31, 2026, Apar Group's total revenue reached a historical peak of INR 229.02 billion, equivalent to USD 2.43 billion, an increase of 23.3% year-on-year; Net profit was 9.77 billion Indian rupees, approximately 103.66 million US dollars, a year-on-year increase of 19%. The company plans to invest a total of 22 billion Indian rupees in the next 18 months, including an additional investment of 15 billion Indian rupees. The funds will be mainly used for the expansion of cable business capacity.Editor/Gong Ziwei