Valor International, a leader in trading and handling of downstream refined oil by-products, has signed an agreement with Hamriyah Free Zone Authority (HFZA) to expand its regional operations and increase its production capacity.
Initially Valor International invested more than AED100 million ($27.2 million) into the logistics and handling by acquiring a 115,000-CBM oil storage facility in Hamriyah Free Zone going by the trade name Valor International Terminal FZE. The facility is a liquid bulk storage facility providing full range of oil logistics operations.
Under the new memorandum of understanding (MoU), Valor International will invest another AED77 million to build a multifunctional mini refinery over an area of 193,750 sq ft leased from the free zone.
The new facility will have an estimated production capacity of 10,000 barrels per day and be designed to refine multiple commodities such as crude oil, fuel oil, gasoil and naphtha, among others.
With the new expansion plans, the total value of Valor’s investments in the free zone will reach close to AED200 million. This comes in line with its strategic plans to expand its regional and global presence from its headquarters in Emirate of Sharjah.
The agreement was signed by Saud Salem Al Mazrouei, director of the Hamriyah Free Zone Authority, and Nima Niknejad, managing director of Valor International, at HFZA headquarters.
“Valor’s expansion plan is a significant step in the right direction. In addition to enhancing the growth of oil trade between manufacturers and users, the new facility will help the company better meet the increasing demand for energy and oil derivatives, in light of the rapid economic growth witnessed by the Emirate of Sharjah,” Al Mazrouei said.
“The petrochemical industry has become a major part of the free zone’s vital industrial sectors in the Hamriyah Free Zone, and with that in mind, we are making every possible effort to create a stimulating environment for companies operating in this sector and are therefore providing a package of integrated and sophisticated facilities and services to encourage companies to expand in regional and global markets starting from the Hamriyah Free Zone,” he added.
Nima Niknejad said: “The new plant will be dedicated to refining many commodities such as fuel oil, gasoil, naphtha, and kerosene for local and global use. Our target market other than Local UAE markets includes India and Fareast and some African Nations.
“We are currently exporting to over 10 countries around the world and we are growing daily. We have close to 40 people working at our terminal and we estimate that within 1 year we shall have another 30 to 40 employees for the plant and around 10 more to our administration and trading teams.”
For more information visit valorinternational.globo.com
