Farabi Petrochemicals commences its new LAB plant in Yanbu, Saudi Arabia

Farabi Petrochemicals inaugurated

  • Farabi Petrochemicals inaugurated its fourth LAB plant in Saudi Arabia, cementing its position as the world's largest integrated LAB producer.
  • A new memorandum of understanding was signed with Unilever to expand their long-standing global supply partnership.
  • The new state-of-the-art facility in Yanbu represents a USD 950 million investment and adds 120,000 metric tons of annual LAB capacity.
  • The plant is strategically located next to Aramco refineries to leverage local feedstocks for enhanced efficiency and sustainability.
  • The project was highlighted as a key contributor to Saudi Arabia's Vision 2030 goals of economic diversification and industrial growth.
  • The expanded agreement with Unilever is designed to align Farabi's increased capacity with the global consumer goods company's growing demand for home care products.

On September 22, 2025, Farabi Petrochemicals Company commenced operations at its fourth integrated Linear Alkyl Benzene (LAB) facility in Saudi Arabia, an event that solidified its status as the globe's leading integrated LAB manufacturer. During the inauguration, a new memorandum of understanding was also finalized with Unilever, marking an expansion of their long-standing global supply arrangement.

The new plant, representing an investment of USD 950 million and situated in Yanbu Industrial City, contributes an additional 120,000 metric tons of LAB production capacity annually. By being constructed next to Aramco's refineries, the facility was noted to efficiently utilize locally sourced kerosene and benzene, a configuration expected to ensure superior integration, operational efficiency, and sustainability.

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It was reported that the CEO of Farabi Petrochemicals Group, Eng Mohammed Al Wadaey, expressed pride in the company's achievement, stating that the milestone was a result of consistent growth, diversification, advanced infrastructure, and dedicated employees. He added that the project actively supports the national Vision 2030 by contributing to economic diversification, job creation, and establishing Saudi Arabia as a global industrial hub, all while maintaining a positive environmental impact. The Chief Procurement Officer of Unilever, Shailendra Sadera, was also present for the signing.

The expanded agreement was said to align Farabi's increased production capabilities with Unilever's growing worldwide demand for home care products. Both companies were reported to have expressed confidence that this strengthened partnership would foster innovation, sustainable growth, and deliver long-term value.

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