2009 first half results - Ducab reports improvement plans for future growth on track
Ducab, the leading manufacturer of high quality power cables in the Middle East, announced its first half results that show evidence of the improving trend in the region’s economies as sales in the second quarter of 2009 showed a 30% improvement over the first 3 months of the year. The total sales of AED 1.2bn for the first half were an 18% decline over the first half of 2008, in line with the lower activity in the real estate sector and the impact on sales value of the sharply lower copper prices. Copper, a key raw material for cable, reached a peak price of over $8000 per tonne in 2008 before falling to under $3000 in early 2009. Prices have since recovered to $5-6000 per tonne.
Mr. Andrew Shaw, Managing Director, Ducab said, “The first quarter of the year was characterised by uncertainty and this adversely affected our sales, but we are very pleased to see the improvement in demand in the second quarter as construction projects have restarted and some stability has returned to the market. We expect this gradual improvement to continue in the second half as the economic situation improves and we begin to see higher sales in some of our new export territories in the MENA region”.
Ducab has been working on streamlining operations and improving efficiencies across the business since late 2008 with projects across all three manufacturing sites aimed at improving yields and reducing costs. For example production of low voltage cables and building wire has been consolidated into state-of-the-art facilities in Mussafah, Abu Dhabi to improve competitiveness and releasing space for expansion in the other factories.
Looking ahead to 2010 Ducab continues to invest in new capabilities and capacity. The company’s Special Cables Unit for Oil & Gas cables is nearing completion in Jebel Ali whilst the construction of the new High Voltage factory (Ducab-HV, jointly owned by DEWA & ADWEA), also in Jebel Ali, has commenced. The company also recently announced expansion in Qatar.
Today, Ducab factories can produce over 110,000 metal tonnes equivalent of high, medium and low voltage cables. The product range covers High Voltage cables up to 132kV, Ducab Powerplus Medium Voltage cables, Low Voltage power cables, control & auxiliary, flexible and building wiring and lead-sheathed cables, Ducab-Smokemaster, Low Smoke and Fume cables, and Ducab-FR (Fire Resistance Cables), Ducab connect- cable components and accessories, as well as copper rod that Ducab manufacture in their own copper rod plant. In June 2009 Ducab was voted as a UAE “Superbrand” for branding excellence.
Ducab tailor-made, advanced cable solutions have laid the foundation for projects ranging from world-renowned Hotels, Island Communities, Hospitals, Airports, Oil refineries and Government Utilities. Some of the landmark projects powered by Ducab include the Burj Dubai, Palm Jumeriah, Gasco Ruwais, Delhi Metro, Dubai Metro, Lulu Island Bahrain, Ras Laffan Qatar amongst many others.