UAE cables manufacturer Ducab saw a 250 per cent increase in sales to the oil, gas and petrochemical sector and a 25 per cent spurt in sales to the utilities sector in 2011, the company’s chairman said while releasing business figures for the year.

The company generated record sales of Dh4.9 billion ($1.3 billion), representing a 39 per cent increase over 2010.

Chairman Ahmad Al Shaikh said the spectacular success was the result of successful expansions and additions of new product ranges and good management of financials.

“We have ventured into new sectors and markets within different regions, and repaid loans of Dh235 million ($63.97 million) on the due dates, as well as paying dividend to our shareholders. Our shareholders equity also increased by Dh138 million ($37.56 million) by the end of last year. As a privately held concern, we are under no obligation to file detailed financial results, but I must stress that our underlying profitability has doubled in 2011 as compared to 2010, which is a huge achievement for Ducab,” he said.

A major highlight in Ducab’s 2011 achievements was the inauguration of Ducab HV, a Dh500 million ($136.19 million) high voltage cable plant and a joint venture between Dubai Water and Electricity Authority (Dewa), Abu Dhabi Water and Electricity Authority (Adwea) and Ducab. 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 region, 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,” remarked Al Shaikh. 

Ducab’s cables sales were almost Dh3 billion for the year with growth driven by strong sales in all GCC markets.

CHALLENGING PERIOD

“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. 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 UAE nationals,” said Al Shaikh.

“We are eager to focus on Ducab’s strengths of customer service and product quality, driven by our strong belief that such commitment to high quality and exceptional value will continue to increase the sale of Ducab cables and allied products across the region,” he said.

Ducab has 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 per cent 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.

Ducab’s cables and copper products are currently sold in over 40 countries worldwide across the Middle East, Europe, Africa and the Far East, and this number will only grow in coming months and years. Approximately 60 per cent of Ducab’s total sales are realised outside the UAE market.

Ducab occupies an area of 590,000 sq m of land in Jebel Ali, Dubai, and nearly 330,000 sq m in Mussafah, Abu Dhabi. that encompass two factories.