To shake up the energy sector, Valor International has just signed a new Memorandum of Understanding (MoU) with the Hamriyah Free Zone Authority (HFZA). This is the beginning of a very ambitious project where they will construct an ultra-modern mini-refinery. This will place Valor International in a position for significant regional expansion and increased production capacity.
Valor International FZC, which is famous for its expertise in handling and trading downstream refined oil products, operates from Hamriyah Free Zone. The company has already made substantial investments into logistics and handling infrastructure, having spent over Dh 100 million. It operates its most notable purchase, known as Valor International Terminal FZE, which is a 115,000 CBM oil storage facility. This giant can store vast quantities of liquid bulk while at the same time catering to almost all oil logistics needs.
Increase Production; Expand Territory
With this MoU confirmation, business activities at Valor International will take a different direction.
This will allow them to do the following:
- Cope with skyrocketing energy and oil derivatives demands propelled by regional economic growth.
- Extend their presence in these regions, which would be in line with their head office in Sharjah.
- Run a wider range of commodities, such as crude oil, fuel oil, gasoil, and naphtha, for local and global markets.
The agreement was signed by Saud Salem Al Mazrouei, who is the director of Hamriyah Free Zone Authority (HFZA), and Nimar Nikx, who is the CEO and managing director of Valor International FZC, at HFZA headquarters in the presence of senior officials from both sides.
“The expansion plan for Valor is a major step forward,” said Al Mazrouei. “In addition to supporting the growth of oil business between producers and consumers, the new facility will help meet increasing demand for energy and oil products due to rapid economic development in Sharjah Emirate,” he added.
“The petrochemical industry has become one of the key industrial sectors in HFZA’s vital free zone areas,” continued Al Mazrouei. “To this end, therefore, we are doing everything possible to create a conducive environment for businesses operating within this sector. We are 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.”
Strategic Partnership and Supportive Ecosystem
This expansion is fueled by a Memorandum of Understanding (MoU) signed with HFZA. It grants Valor access to:
- a stimulating business environment within the free zone.
- integrated and sophisticated facilities and services supporting regional and global expansion.
- a supportive ecosystem for companies operating in the oil and gas sector.
Nimar Nikx expressed his happiness with the new step taken by Valor. He emphasized that it was driven by the unique facilities and exceptional support provided by the free zone to all investors.
“We have had such a great experience with HFZA since our incorporation in 2019,” Nikx 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, the Far East, and some African nations. We are currently exporting to over 10 countries around the world, and we are growing daily.”
In one year, we should have more than 30 to 40 more employees for our administration and trading teams and plant,” Nikx responded.
HFZA provides “unique facilities and exceptional support,” which Valor’s CEO Nimar Nikx praises. Strategic partnerships of this kind are crucial in fostering industry growth and innovation, according to Nikx. His leadership underscores the importance of collaboration and forward-thinking in driving the company’s success.
The New Memorandum of Understanding: Details and Implications
The freshly signed MoU allows Valor International FZC to lease a plot measuring 193,500 square feet from HFZA. A state-of-the-art mini refinery will be constructed on this site, which has attracted Dh77 million in investment capital. This facility is expected to have a production capacity of about ten thousand barrels per day, from which crude oil, fuel oil, gasoil, and naphtha shall be produced.
Investing in the future:
The expansion is a lynchpin of the strategic plan of Valor International in order to ameliorate its functions regionally and globally. This new facility, which is based in Sharjah, will increase Valor’s cumulative investment in Hamriyah Free Zone to almost AED 200 million. This not only shows that the firm is dedicated to growing but also underlines its status as a significant player in oil trading and logistics.
This presents Valor with marketing confidence that they are moving to capture more of the regional oil and gas market. The strategic shift paves the way for long-term sustainability with an increase in production. This new mini-refinery will process a wider variety of commodities and thus meet many different market needs. Such expansion can only be done through strategic alliances with HFZA (Hamriyah Free Zone Authority).
Hfza offers a robust business environment coupled with interconnected facilities and a supportive eco-system. The capital will be used to support Valor’s growth in the U.S. and abroad, he said, as both markets present good opportunities for the company.
Through this partnership, we get the best of infrastructure and services, which in turn also helps in seamless expansion. Valor is making strategic efforts, already securing their place and readiness in the market for now and forever, that can secure their success and lead in the
