Creating High-Performance Lubricant Formulations In-House

The client’s operations used off-the-shelf industrial lubricants that often underperformed in their extreme operating environments. This led to frequent downtime and higher lubricant consumption. There was no in-house lab for formulation, no R&D team, and no partnerships with additive suppliers. The client lacked a roadmap on how to set up a cost-effective custom formulation capability.

We designed a custom formulation development program, from lab setup and staffing to product design and pilot testing. This included recommending base oil and additive suppliers, mapping R&D workflows, and implementing small-batch testing for internal use. We also scoped opportunities for future commercialization of high-performance lubricants tailored for Saudi industrial conditions.

• Conducted lubrication failure analysis across five industrial plants.
• Proposed lab infrastructure with ASTM testing equipment and layout.
• Selected key base oils and additive packages suitable for dusty, high-load conditions.
• Developed five pilot lubricant formulas and tested over 90 days in real operations.
• Created SOPs for internal QA, formulation logging, and field performance validation.
• Established partnerships with two global additive companies for support.

• Start with captive-use formulations to reduce risk and test in live operations.
• Develop in-house QA protocols aligned with ASTM and OEM standards.
• Train chemical engineers on formulation tools and batch blending.
• Document case studies to support future product marketing.
• Assess potential for commercial spin-off of high-performing formulas.

The client reported a 19% reduction in lubricant consumption and a 27% drop in unplanned machine downtime at two pilot plants. Internal formulation replaced 70% of third-party procurement in Year 1. Cost savings from in-house production were estimated at SAR 3.2 million annually. The client began preparing regulatory approval for commercial sales. Total ROI was 4.3x, combining internal efficiency and new revenue streams.