Ducab sales surge 39pc to $1.33bn
Dubai, February 29, 2012
Ducab, one of the leading manufacturers of high-quality power cables in the Middle East, has announced record sales of Dh4.9 billion ($1.33 billion) for 2011, up 39 per cent over the previous year.
Announcing the results on Wednesday, Ducab chairman Ahmad Al Shaikh said the significant areas of growth included 25 per cent higher sales to the utilities sector and a record 250 per cent increase in sales to the oil, gas and petrochemical sector.
“Our success in 2011 was the result of successful expansions and addition of new product ranges, and managing our financials,' he stated.
'We have ventured into new sectors and markets within different regions, and repaid by due dates loans of Dh235 million, as well as paying dividend to our shareholders. Our shareholders equity also increased by Dh138 million by the end of last year.”
Al Shaikh pointed out that the Dubai group's underlying profitability had doubled in 2011 as compared to 2010.
A major highlight in Ducab’s 2011 achievements was the inauguration of Ducab HV, an Dh500 million high voltage cable plant, and a joint venture between Dewa, Adwea and Ducab, by Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.
Ducab-HV represents a huge benefit to the UAE economy as it offers excellent quality alternatives to imports. The plant’s products cover the highest voltages used in the GCC, ensuring that Ducab’s utility partners and other customers can source energy infrastructure and cables from a local supplier.
“Ducab-HV will offer exceptional quality, stringently tested, high voltage products and cables to local and regional markets, thereby providing a very viable alternative to imports. It presents a significant step in Ducab’s ethos of innovation and R&D, and will meet the highest voltage requirements in the UAE and GCC,” he added.
According to Al Shaikh, Ducab’s cables sales were almost Dh3 billion for the year with growth driven by strong sales in all GCC markets.
Approximately 60 per cent of Ducab’s total sales are made outside the UAE market, he added.
“Last year was a challenging period worldwide in the cabling industry, with sectors generating major demand, such as real estate and construction, not seeing much activity,' he stated.
'However, we were able to complete the first half with good results which continued as well in the second half to round up a very successful 2011. UAE National Development continues to be a core focus with 40 per cent of senior management and 18 per cent of white collar staff positions held by Emiratis,' he added.
According to him, Ducab has also initiated several measures to ensure environmental sustainability.
'Water conservation is an important element of Ducab’s green strategy, with its Jebel Ali plant treating and reusing 100 percent of its water for irrigation.'
'Ducab facilities are air conditioned by units that have high energy efficiency ratios (EER), while energy efficient lighting alternatives are also being investigated. In addition, Ducab has increased its investment in copper recycling equipment across all its sites,' he stated.
Ducab’s cables and copper products are currently sold in over 40 countries worldwide across Middle East, Europe, Africa, and Far East in Asia, and this number will only grow in coming months and years,' he added.-TradeArabia News Service