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Ducab plans expansion

DUBAI — Dubai Cable Company (Ducab) is planning further expansion of its facilities to meet the projected Dh1 billion demand this year, a senior company official said.

Speaking to Khaleej Times, Farid Mohammed Ahmed, senior general manager UAE operations, Dubai, said: “Last year we secured in excess of Dh1 billion orders that we are to execute this year."

"Given this figure, we are planning to expand in the next two to three months to increase our production capacity. In July, we will operate our new line in Abu Dhabi, specialising in manufacturing of LSF (low smoke and fume) wires.”

The company is investing Dh125 million in copper rod casting plant in its Abu Dhabi factory premises to cater to its raw material needs.

The plant will have a capacity of manufacturing up to 160,000 tonnes of copper rod a year, making use of the state of the art CONTIROD(r) technology and equipment.

The Abu Dhabi plant is Ducab’s biggest investment since its inception and was built as part of Ducab’s corporate strategy of increasing its business to Dh2 billion by 2010.

Last year, Ducab had Dh1.1 billion in sales, while this year’s outlook remains strong with at least the same level of growth.

The company is projecting 30 per cent year-on-year growth up to 2010. Its last year’s revenue is set to register 30 per cent growth to touch Dh1 billion against Dh768 million in 2004.

Some 80 per cent of Ducab’s products are sold in the UAE market, while the remaining 20 per cent is exported, he said, adding that 75 per cent of supplies are on long-term supply agreement.

Ahmed also said that Ducab would be involved in Dubai Metro project. He said: “Dubai Metro is in a very early stage. We are still in discussions. We are very well positioned both technically and logistically to be a lead supplier for the project.”