How to Start a Lubricant Oil Production Company

A lubricants main job is to increase efficiency or reduce friction between mechanical parts. Many lubricants are produced from by-product of petroleum. The base oil is processed and used for many applications.
There are different petroleum products such as liquefied petroleum gas, dual purpose kerosene and low pour fuel oil. Others are automotive gas oil, diesel and petroleum motor spirit.
There are two major types of lubricants the natural petroleum by-product and synthetic oil. The oil is produced from hydrocarbon based pologlycols such as polyalphaolefins.
Entrepreneurs can leverage on the wide array of petroleum products to launch their own business. Lubrication oil production is capital intensive and highly competitive.
You will find different types of lubricants in the market. Top petroleum distribution companies manufacture their own brands of lubrication oils.
The oil has both industrial, home use in generators, and factories applications. The good news is that lubricant oil production can be done small or large scale.
Learn the Trade
Understanding the manufacturing process is very important before you start your business. Learn the trade through information gathering and seminars.
Sign up for training seasons, or study at an industrial trade institute. Read books on lubricant formulation and buy information products.
Another way to learn the trade is an apprentice training program with a manufacturer. Alternatively hire an expect chemist to manufacturer the product.
Register your Business Venture
Register your business name to reflect the nature of your enterprise. Make it a limited liability company and get insurance.
Find out other permits and patent the product name you create. Other things to do are write a business plan to highlight your future goals, growth potential and company structure. Include a mission statement and operational cost considerations.
 Lease a Property
The size of your operation dictates the amount of space you need. Large companies work from warehouses to produce the lubricant.
Small producers can produce in small factories or shed. You need proper containment, storage and handling of your product.
Due to the harmful chemicals you handle your location should be away from residential areas. The best location for your factory is in a designated industrial area.
You might also consider opening a wholesale outlet for your product. The outlet can sell to other wholesalers at a subsidized rate or to retailers.
Other things to think about when leasing a property are distance to your market and transportation costs.
Choose a Niche
You have to determine the type of lubricant you want to produce. Are you interested in producing synthetic lubricants or those produced from petroleum by-products?
The chemicals you use including production process, impacts on the price of the product. Some are very expensive because of the functionality and product quality.
Many small home base manufacturers focus on the cheaper or more common ones such as mineral oil. Choose a niche, source your product setup the manufacturing process.
Then bottle your product, label and market the brand.
Technical Information
Lubricant oil produced in the market fall into three major categories. The lubricants common in the market are viscous oils, medium oils and light oils. 
The production process involves mixing the base oil in a blending plant and adding additives such as anti-corrosion chemicals and dispersants.
Once the heat and agitation process is conclude it is left to cool. The next process is filling the plastic containers or drums before labeling.
 Learn the entire production process from the sourcing of raw materials, formation and production process. Don’t forget branding and marketing your product.
Focus on good quality control, consistency and well blended product. The quality of your product is your biggest marketing tool. Customers will seek your product if you do a good job.
You need moderate amounts to start a small manufacturing company. Approach a commercial bank in your area for a loan. You can target save or borrow from friends and family. Approach investors or try a partnership arrangement.
Raw Materials
Raw materials to produce lubricant are readily available. Countries that produce crude oil have lots of by-products for lube producers.  An abundance of Base oil from refineries guarantee lots of supply for your lube business.
Some raw material includes dioctyl sebacate, silicon oils and vegetable oil. Others are fats, hydrogenated oils, castor oils and polyalkylene glycols.
The business venture is highly competitive so you need advertisement. Advertise in both print and electronic media to attract customers.
Create a good brand name and produce quality lubricant. Build a website for your business and sell through the site. Engage independent sales representatives to push the product.
Do direct marketing to lubricant wholesalers or retailers and offer discounts. Organize promotions and interesting events to attract patronage.


  1. Ding Oil International Trading Ltd., Co. -- Kaohsiung, Taiwan.

    We are the leading supplier focusing on all types of vehicle and industrial lubricants with many years experienced with the brand name “BOD – Best Oil Designer”. We have been exporting to many markets worldwide such as USA, China, South East Asia, Korea, Japan,… as well as a very trustworthy OEM/ODM partner of them.

    We would like to introduce to you our special products that you may have demand currently. Our strategic products are as below:

    - Petrol Engine Oils

    - Diesel Engine Oils

    - Hydraulic Oils

    - Gear Oils

    - Brake Fluid

    - Transmission Oils

    - Grease

    - Coolant

    - Chemical Additives Oil

    - Other industrial lubricants,…

    Especially, we choose a very different way from other competitors who just focus on providing normal standard lubricants from API, ACEA, JASO,... all kinds of Automotive Oil and Motorcycle Oil that we offer are Fully Synthetic and specifically designed for racing cars/motorcycles, luxury cars and heavy engines which work under harsh conditions and require more power as well as some special functions of engine protection like: excellent corrosion and abrasion resistance, good cold starting, excellent temperature resistance, thermal dissipation, endurable under high temperature, anti-oxidation, anti-rust, prevent sludge formation, longer service life. Especially, save fuel, prolong engine life and reduce emission.

    Our product are produced under rigid quality control. Therefore, we can be sure that the goods supplied are those of the best quality.

    Moreover, we always consider all customers as mutual partner for long-term business. We can offer you various kind of lubricants at attractive prices. If you are interested, we will offer as soon as possible.

    Finally, hopefully we could start the win-win relationship very soon.

    For more information about our products, please refer to our website:

    Tommy Luu

    International Trading Representative

    Taiwan Office:Ding Oil International Trading Ltd., Co.

    Address: No.100-61, Fengren Rd., Fengshan Dist., Kaohsiung City 830, Taiwan (R.O.C.)

    Tel:+886-7-740-5126 +886-7-740-5128



    Line: +886-97-911-4842

    Zalo: +886-97-911-4842

    Official website:;

  2. Hi all, this is Anish. Along with my partner who was working as a chemist with an engine oil manufacturing company, I am planning to start an oil manufacturing facility. We are looking for funding. We have a clear business plan and market strategy. We invite financial partners. Our initial potential market is south India.
    Interested person can ping me.

    1. Hi I I'm interested in joining hands and scout for funding the project in South.
      U can contact me at my no 09380037125or my what's up no 9381016948

  3. I want to start oil business can u give me details & course how to make and machinery area and investment