Creating High-Performance Lubricant Formulations In-House
Issues
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.
Solution
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.
Approach
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.
Recommendations:
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.
Engagement ROI
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.
