Dubai Cable Company (Ducab) has signed its largest-ever export deal worth Dh 50 million ($13.6 million) to manufacture, hold stocks and supply over a two-year period all the cable requirements of Kahramaa, also known as Qatar General Electricity and Water Corporation.

The exclusive contract includes the supply of 11kV medium-voltage, low-voltage power distribution cables and pilot cables for the infrastructure projects undertaken by Kahramaa. Ducab won the contract from amongst several pre-qualified international and GCC cable manufacturers as it was evaluated to be the only company fully geared to meeting the stringent standards of product, customer service and logistical support, a Ducab statement said.

"Kahramaa's agreement with Ducab signifies a new era in industrial co-operation and trust among the GCC states. The Gulf states do not need to look towards international companies anymore for the supply of industrial goods as manufacturing units in the region are meeting international standards of quality and logistical support," said Abdullah Bin Hamad Al Attiyah, Qatar's Minister of Energy, Industry, Electricity and Water and Chairman of Kahramaa. "We look forward to such agreements as they further strengthen the existing ties among the countries in the region."

Ducab general manager for sales and marketing Farid Mohammed Ahmed said: "The fledgling industrial sector in the UAE is gradually making its presence felt in the Gulf and Middle East region and Ducab's agreement with Kahramaa will certainly give an added impetus to the sector.

"We hope this is the beginning of a long-term relationship with the Qatar power utility and we look forward to working with a progressive organisation like Kahramaa."

Ahmed added that Ducab's achievement in winning the contract in the face of stiff regional and international competition was evidence of its steadfast commitment to quality and the maintenance of high professional standards. Ducab believed in developing enduring partnerships with its clients, hence the concentration on value-added after-sales support and customer service, he said. The 11kV medium voltage (MV) power cables will be used to connect 66/11kV substations to 11kV / 415 V substations located closer to the load centres and consumers, while the low voltage (LV) power cables will connect 11kV / LV substations to the consumer load.

The actual supply of cables during the two-year agreement will be made directly to Kahramaa's contractors as required on a daily and weekly basis, from the stock held on ground with Ducab's joint venture Jassim Bin Khalid (JBK)-BICC, the marketing arm of Ducab in Qatar. The agreement specifies the "Call Off" supply of cables in cut lengths, thus relieving Qatar General Electricity and Water Corporation from tendering, administrating and holding stocks of cables and ensuring substantial savings. The cables will be manufactured at Ducab's new state-of-the-art medium voltage manufacturing facility in Dubai.

The agreement between Ducab and Kahramaa has ensured the maximum utilisation of Ducab's new manufacturing facility and necessitated the creation of new processes at Ducab in terms of logistics, warehousing, information systems and order fulfillment to satisfy the demanding 'call off' requirements of the customer in the most efficient manner.

"We have incorporated a unique web-based provision called 'e-Next' along the lines of a B2B e-commerce solution that allows long-term clients like Kahramaa to keep track of the execution of their purchase contracts online," said Ahmed. He added that the facility was also in keeping with the e-commerce and e-government vision of General Shaikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister, to turn Dubai into a leading player on the IT and e-commerce scene in the region.

The agreement is significant for Ducab since it projects a major boost in market share within a high-potential regional utility market and in particular the Qatar market. The deal is also expected to build confidence with other regional utilities for Ducab's capacity to cater to orders of such a magnitude, thus improving its international prospects.

Established in 1979, Ducab is the first purpose-built cable manufacturing company in the UAE and is owned by the governments of Dubai and Abu Dhabi. Its product range covers low voltage power cables, control and auxiliary cables, wiring and lead-sheathed cables in addition to Ducab Powerplus medium voltage cables (up to 33 kV) and Ducab Smokemaster cables in situations where safety is paramount. The company is also well known as the distributor of Ducab Connect cable accessories.