Farabi inaugurates $950 million LAB plant in Yanbu, expanding capacity and strengthening its 20-year global partnership with Unilever.
Farabi Petrochemicals Company has officially inaugurated its fourth integrated Linear Alkyl Benzene (LAB) plant in Saudi Arabia, further consolidating its position as the world’s largest integrated LAB producer. The company also marked a significant step in its long-standing collaboration with Unilever by signing a new memorandum of understanding (MoU) aimed at expanding their global supply partnership.
The newly launched $950 million facility, located in Yanbu Industrial City, will add an annual capacity of 120,000 metric tons of LAB. Strategically situated adjacent to Aramco’s refineries, the plant utilizes locally sourced kerosene and benzene feedstocks. This proximity enables a high degree of integration, operational efficiency, and sustainability, aligning with global industry standards. The facility reflects Farabi’s commitment to state-of-the-art industrial practices while ensuring minimal environmental impact.
This milestone represents a crucial chapter in Farabi Petrochemicals’ growth trajectory. Beyond its industrial significance, the plant contributes to Saudi Arabia’s Vision 2030 objectives, particularly in promoting downstream sector diversification, localization of production, and broader economic development. By expanding high-value chemical production capabilities, Farabi is helping strengthen the Kingdom’s GDP and industrial base while fostering sustainable development.
The partnership with Unilever, a relationship spanning over 20 years, has been instrumental in supporting Farabi’s growth. Over the decades, Farabi’s strategic investments in capacity expansion have complemented Unilever’s increasing demand in the home care segment. The signing of the MoU at the inauguration ceremony by Farabi Petrochemicals Group CEO Eng. Mohammed Al Wadaey and Unilever’s Chief Procurement Officer Shailendra Sadera symbolizes the companies’ commitment to further strengthen their collaboration.
LAB serves as a critical raw material for household and industrial cleaning products, and Unilever remains the world’s largest buyer of this chemical. Al Wadaey emphasized that Farabi’s leadership in LAB and NP production stems from consistent growth, product diversification, advanced infrastructure, and the dedication of its skilled workforce. “Our operations actively support Vision 2030, driving economic diversification, creating employment opportunities, and positioning Saudi Arabia as a global industrial hub, all while maintaining a positive environmental impact,” he stated.
The expanded agreement ensures that Farabi’s increased production capacity will meet Unilever’s growing global demand, enabling the development of innovative and sustainable home care products. Both companies expressed confidence that the strengthened partnership would deliver long-term value, advance shared sustainability objectives, and reinforce their leadership in the chemical and consumer goods sectors.
