East Oil Signs Exclusive Agency Agreement for German 'Divinol' Lubricants in Saudi Arabia and Syria as Part of Regional Expansion

Riyadh | EcoPulse24

East Oil Chemical Industries (9605) announced on Thursday, February 12, 2026, that it has signed an exclusive agency agreement with Germany’s Zeller+Gmelin GmbH & Co. KG. Under this agreement, East Oil becomes the sole distributor of Divinol branded lubricants in both the Kingdom of Saudi Arabia and the Syrian Arab Republic.

The company stated that the agreement grants it exclusive distribution rights for Divinol products, a German brand specializing in industrial and commercial lubricants, including advanced industrial applications, lubricants for heavy sectors, and high-performance lubrication solutions.

Background on the German Partner

Zeller+Gmelin is a long-established industrial company in Germany, founded in 1866, with over 150 years of expertise in developing and manufacturing specialized lubricants and industrial chemical solutions. These serve diverse sectors such as heavy industry, printing, automotive, and precision engineering.

Signing an agency agreement with such a significant industrial player marks a strategic milestone for East Oil, adding a high-reputation European brand to its portfolio and strengthening its position in Saudi Arabia’s specialized lubricants market - one of the region’s largest.

Strategic Implications of the Agreement

This move aligns with East Oil’s strategy to diversify its offerings and represent global brands, supporting its regional expansion and boosting competitiveness. The agreement is expected to:

• Expand its client base in heavy industrial sectors.
• Increase average profit margins through higher value-added products.
• Diversify revenue sources beyond traditional products.
• Enhance its presence in the Syrian market as commercial channels are reactivated.

The exclusive nature of the agreement gives East Oil a competitive advantage in the targeted markets, limiting direct competition for the same brand within the specified geography.

Expected Financial Impact

The company did not disclose the financial value of the agreement or target sales volumes but indicated the deal is expected to support revenue growth in line with its expansion plans.

Given the nature of industrial lubricants, introducing a specialized European brand may positively impact average selling prices and profit margins, especially if targeting stable-demand sectors such as manufacturing, energy, and large-scale projects.

Governance and Disclosure

The company confirmed that there are no related parties involved in this agreement, enhancing the transparency of the transaction from a governance and regulatory disclosure perspective.

EcoPulse24 Analysis

This step represents a strategic shift for East Oil from a traditional distribution model to representing high-tech industrial brands. As Saudi industrial companies focus on operational efficiency and long-term cost reduction, demand for specialized, high-quality lubricants is likely to grow.

The agreement’s success will depend on East Oil’s ability to build an effective distribution network, target major industrial sectors, and manage working capital efficiently. If East Oil can convert this exclusive agency into long-term supply contracts, it may serve as a sustainable growth driver in the coming years.