danube invests aed 60 million in a new facility in jafza south

Published June 12th, 2007 - 09:58 GMT

danube invests aed 60 million in a new facility in jafza south

500,000 sq. ft. warehouse to host the Middle East’s largest dry kiln facility

June 12, 2007

Danube Building Materials, FZCO, a leading player in the construction, interiors, and shop-fitting industry, has announced its expansion into the southern area of Jebel Ali Free Zone with an AED 60 million warehouse and distribution facility. The new complex, which is aimed at leveraging the high demand for Danube’s comprehensive range of products, will include the largest dry kiln facility in the Middle East.

The 500,000 facility will also house an annex logistics and distribution centre, a state-of-the-art Dutch barn and an open yard. With a container-loading pit equipped with three 10-tonne dock levellers, the Dutch barn will be used to safely store weather-sensitive building materials such as MDF, plywood and some timber products. The open yard is paved and levelled to accommodate a huge stock of timber/lumber bundles, marine plywood, steel, glass and aluminium, which are top-sellers in the market.

"Jafza and Danube have shared a rewarding relationship since 2004, and the company’s new venture in the southern area is a testament to the solid reputation and market stronghold that has been achieved over the years. As a business hub of Dubai, Jafza aims towards building long-term partnerships and adding value to our customers’ operations, and we fully support Danube as it furthers its business goals with the launch of its new state-of-the-art facility,” said Salma Ali Saif Bin Hareb, CEO, Jafza.

Following the completion of the new warehouse and distribution centre, Danube will construct the largest dry kiln facility in the Middle East and has already obtained the building permit from Jafza authorities. The future project, which will have a capacity of 1000m³, will enable in-house moisture removal for its extensive timber range.

Commenting on the new expansion, Rizwan Sajan, Chairman of Danube, said, “The continuing demand for our products in the booming construction and building materials industry has prompted us to supplement our first facility in Jafza north with an extensive distribution centre in the new south area. This will enable us to ensure the quality standards of our products and services by protecting the quality of stored supply and maintaining a wide range of products readily available to clients.”

“Danube has a firm commitment to bring to the Middle East market the latest and most innovative construction and building materials products, and the future dry kiln facility is part of our aim to provide the best products at the most competitive prices. Upon completion, the dry kiln chamber will be the largest in the Middle East region and with this enormous capacity, moisture treatment for our timber products can be undertaken by our staff. This will enable us to supply the best goods, speed up our process and add value to the products we offer to consumers,” added Sajan.

Danube’s latest expansion coincides with the 15th year of the company in the building materials industry since beginning as a small trading firm in 1993 and rising to become one of the largest building materials providers in the region with operations in the UAE, Oman, Bahrain and India. The company’s product portfolio has extensively grown and presently comprises 10,000 products ranging from MDF, plywood, timber, laminates, veneers to sanitary fittings, hardware, ironmongery, aluminium and glass amongst others. In 2004, the company began its operations in Jebel Ali with a 19,000 sq. m. warehouse cum office, which serves as its regional hub.

“As we enter our 15th year in the industry, our new facility is a fitting highlight of the accomplishments that we have attained over the years in Dubai and the Middle East, especially with the 50 per cent growth in revenues in 2006. We are prepared for further strategic expansions into the booming construction industries in the Middle East and we expect to hit higher revenue targets in the future,” concluded Sajan.

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