Sepahan Oil Company, the largest producer of Group I base oils in the Middle East, signed an agreement with FUCHS Lubricants Iranian Company, a 100% subsidiary of FUCHS Oil Middle East, to manufacture and supply grease under the FUCHS license.

FUCHS will work with Sepahan Oil as a consultant on transfer of technology for production of high-quality lubricants.

According to SOC Public Relations Department, the company is seeking to promote quality of products and get access to European modern technology to produce variety of lubricants.

SOC's grease manufacturing unit will become operational within 15 months under the deal.

Iran is the largest automotive market in the Middle East with its population of 80 million. The country sold 1.1 million cars last year, with new sales expected to reach 1.6 million in 2020, according to US research company IHS Automotive.

Sepahan has a Group I base oil plant in Esfahan, Iran with capacity to produce up to 8,000 barrels per day.