09 October 2012 21:10 [Source: ICIS news]
DUBAI (ICIS)--The use of lubricants in industrial applications in the Middle East has immense potential for growth, an industry official said on Tuesday.
“Industrial oil is a fast growing segment, which comprises about 26% of total lubricant consumption in the Middle East,” said Meherdad Vajedi, area sales manager with Nynas AB (Middle East), at the two-day ICIS Middle East Base Oils and Lubricants Conference in Dubai.
Total industrial lube consumption is only 440,000 tonnes/year, but this segment has been growing steadily for the past five years and is expected to continue expanding, said Vajedi.
Iran is the biggest market in the Middle East for industrial lubricants, accounting for 39% of the total consumption, Vajedi said. Saudi Arabia and Iraq are the second and third largest, with shares of 21% and 10% respectively.
Demand for industrial grease, which is currently 35,000 tonnes/year, goes mainly into lithium soap grease, he said.
Consumption of lubricants in the steel industry is also strong in the Middle East.
“The Gulf Cooperation Council (GCC) region has a per-capita consumption of 645 kg, which is higher than the world average of around 240 kg,” he added.
The use of lubricants in cement and aluminium plants in the Middle East is also growing, said Vajedi.
The automotive segment is also a strong consumer of lubricants.
“The Middle East produces 1.5 million units/year and Africa 660,000 units, mostly in Iran and South Africa,” he said.
The GCC has 300 auto parts manufacturing units, 180 of them in Saudi Arabia.
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