UAE's Enoc Group inks three-year lubricant supply deal with Famco
The MoU will see Eppco supplying roughly 22,500 barrels, equivalent to 3.6 million litres, of products to Famco
The lubricants arm of the UAE’s Enoc Group has signed a three-year supply deal with Al-Futtaim Auto & Machinery Company (Famco), with the memorandum of understanding to see Eppco lubricants exclusively supplying the construction and commercial vehicle distributor with lubricants, coolants, and greases for its UAE operations.
The group said it will supply 22,500 barrels – equivalent to 3.6 million litres – of the products over the next three years.
Citing “recent research”, Eppco lubricants – a joint venture between Enoc and Chevron Al Khaleej – said the global industrial lubricants market size is expected to reach $68.4bn by 2024.
“The growth of the manufacturing sector is resulting in a rise in demand within the automotive, industrial, and marine lubricant markets,” said HE Saif Humaid Al Falasi, group chief executive officer at Enoc Group.
Eppco Lubricants, which distributes Enoc- and Caltex-branded lubricants and greases in the UAE, described the agreement as one of its “most strategic accounts” in the last 15 years.
The deal comes three months Enoc Group formed a “strategic alliance” with energy giant Indian Oil Company in a joint effort to expand the former’s global presence.
In February 2019, it also announced its physical expansion into Egypt by setting up a joint venture with Proserv Egypt to sell lubricants in the country.