Farabi Petrochemicals inaugurates $950M LAB plant in Yanbu, expands strategic partnership with Unilever
Farabi Petrochemicals Company today inaugurated its fourth integrated Linear Alkyl Benzene (LAB) plant in Saudi Arabia, reinforcing its position as the world’s largest integrated LAB producer. The company also signed a new Memorandum of Understanding (MoU) with Unilever to expand their long-standing global supply partnership.
The $950 million state-of-the-art facility, located in Yanbu Industrial City, adds 120,000 metric tons per year of LAB capacity. Built adjacent to Aramco’s refineries, the plant leverages locally produced kerosene and benzene feedstocks, ensuring world-class integration, efficiency, and sustainability performance.
The new plant marks a significant milestone in Farabi’s growth journey, contributing to Saudi Arabia’s Vision 2030 objectives of downstream diversification, localization, and GDP growth.
Farabi and Unilever have established a strategic partnership over the last two decades. Farabi’s timely investments in capacity have supported Unilever’s growth in the home care business
At the ceremony, Farabi Petrochemicals Group CEO Eng. Mohammed Al Wadaey and Unilever’s Chief Procurement Officer, Mr. Shailendra Sadera, signed the MoU to further strengthen their 20-year strategic partnership. LAB is a key ingredient in household and industrial cleaning products, and Unilever is the world’s largest buyer of LAB.
Farabi CEO mentioned, “Farabi Petrochemicals is proud to be the world’s largest producer of LAB and NP which is the result of consistent growth, product diversification, advanced industrial infrastructure and dedication of our talented employees.
We actively support Vision 2030 driving economic diversification , creating job opportunities , contributing to Saudi Arabia’s position as a global industrial hub, while maintaining a positive impact in the environment”
The expanded agreement aligns Farabi’s capacity growth with Unilever’s constantly growing global demand in home care products, supporting innovation and sustainable growth. Both companies expressed confidence that this deepened collaboration will generate long-term value and advance their shared sustainability goals.
