Providing an end-to-end solution begins by fully understanding our clients’ needs, so we deploy our field engineers to understand the issues and challenges they face. Based on our analysis, we recommend the lubricant that will best enhance the life of the machinery and increase productivity.”

Peter Quarm

DIRECTOR, DUTYLEX

December 05, 2019

Can you provide an overview of Dutylex’s activities and its position in the market?

Dutylex is a fairly young energy company from Ghana, and our goal is to energize various industries. Over the last six months, we have been on a journey to determine where we best fit in terms of industries. Our role in Ghana is to represent and rebrand Mobil, and we are therefore present in the mining industry as well as the oil and gas and marine industries. Our aim is to be able to contribute to the Ghanaian economy to further its prosperity and productivity.

What challenges has the company encountered in the mining industry?

To the industries we supply, price is a key factor in their decision as to which lubricant to use. The price we charge includes securing the product, shipping it to Ghana and customs clearing, and all these processes are complicated and costly. The main challenge we face is being able to provide a premium product for a competitive price. Currently, we are exploring supplying a more premium product at a lower price without reducing its quality.

Is your competition foreign or local?

The competition we face is a combination of both, but mainly foreign companies. The competition in this market is price-based and we attempt to strike a balance by producing an affordable product at excellent quality.

Do you provide prospective clients with a lube analysis service to ensure they choose the right product for their business?

Our primary goal is not simply to sell the product, but to provide an end-to-end solution. This begins by fully understanding our clients’ needs, so we deploy our field engineers to understand the issues and challenges they face. Based on our analysis, we recommend the lubricant that will best enhance the life of the machinery and increase productivity.

Are lubricants something the government requires mines to use considering the fact that they reduce the environmental footprint overall?

My view is that the government is strict in ensuring a reduced environmental footprint of mining in general. In Ghana, the issue is not necessarily having the laws but more their implementation and enforcement.

Are companies generally aware of the cost-saving advantages of lubricants?

Around 80% of our clients would prefer a more cost-effective solution in lubrication as opposed to a high-quality one. Therefore, we often have to communicate the importance of quality to them to justify the premium nature and pricing of our product.

At the moment you import Mobil´s lubricants. Do you plan to produce the product in Ghana in the future?

The long-term goal is to blend our own lubricant in Ghana. In Africa, it is only Egypt that produces the lubricant, and it supplies 50% of the entire product range that is used in Africa. We believe that blending our own lubricant would have a positive domino effect by creating employment and other benefits.

What differentiates Dutylex in the lubricant market?

Our main differentiators are our indigenous nature and our expertise in delivering to our clients at affordable prices. Our work ethic is also our competitive advantage; we are very responsive to our clients’ needs regardless of the hour. As we grow in size, I know this component of our business will remain steady – our readiness to serve our clients.

In which segment of the mining industry do you see the highest growth potential?

We see the most opportunity with multinational companies such as Newmont, which is our biggest client at the moment. While we are not discounting opportunities to work with service providers such as African Mining Services, our ideal domain is direct relationships with the main mining operators in the industry.

Do you see opportunity to expand into other African countries?

In the short-term, we want to capture the Ghanaian market. After affirming our position in Ghana, we would like to expand throughout West Africa, which is a powerhouse of mining. Our target is not just to distribute Mobil but to supply markets such as Togo, Benin, Burkina Faso, Mali and Cote D’Ivoire as well.

Do you have a final message to our readership?

We are a small company with great expertise and skill, and when given the opportunity, we always deliver.

 

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