Danway, a wholly owned subsidiary of Emirates Holdings, begins a new venture in electro-mechanical engineering following a collaboration deal it reached with global power and control specialist Schneider Electric.
The two companies signed three agreements for the manufacture of medium voltage switchgear, adaptation of ring main units and motor control centres for the oil and gas sector. The manufacturing process will use Schneider Electric components and technical knowhow.
Husain Al Nowais, chairman, Danway, and Yan T Golaz, managing director, Schneider Electric, Gulf, signed the agreements in Abu Dhabi.
Danway has been active in the electrical engineering industry with substantial local value addition to the extent of completely independent design and engineering expertise in the production of low voltage motor control centres, assembly of industrial battery chargers, hazardous area certified power distribution products and electrical cable accessories.
Schneider Electric, a global premier power and control specialist with operations in 130 countries and a workforce of more than 72,000, has been operating in the Gulf for 30 years.
Danway began operations in the UAE in 1976 in the field of generator hire and service, representing Dawson Keith, UK, a leader in the manufacture of diesel generators. Over the years it became a multi-divisional company representing more than 100 world-renowned leaders in electro-mechanical and instrumentation equipment and service. Starting from a staff strength of 20 to 25, it now employs more than 700 professionals trained in project management, engineering, marketing, finance and administration and service support.
The merger of Dawson Keith and Associated British Engineering Group (ABE), a public limited company in the United Kingdom resulted in the key tie-up between Danway and ABE. In 1982 Danway became a subsidiary of ABE, thereby accelerating the growth of the company by leaps and bounds.
Danway has 12 divisions catering to a wide range of products and services in fields including electro-mechanical engineering, contracting, instrumentation, and industrial and retail systems.
1999 was another milestone in the history of Danway. The year saw its emergence as an integral part of Emirates Holdings, a leading business Group in the UAE. The group, which holds a number of subsidiaries, is an acclaimed leader in the oil and gas, power and water, engineering and construction, communication and information technology, FMCG and healthcare industries.
Meanwhile, Schneider's growth path has led it to expand in electricity by acquiring firms with complementary competencies in this area. With four international brands - Merlin Gerin, Modicon, Square D and Telemecanique - Schneider Electric is today one of the world's leading manufacturers of equipment for electrical distribution, industrial control and automation.
For the nine-month period ended September 30, 2002, Schneider Electric's consolidated sales amounted to Euro 6,844 million, down 7.6 per cent compared with the same period in 2001. Third quarter 2002 sales amounted to Euro 2,268 million, down 2.4 per cent on a constant structural and currency basis compared to the same quarter of 2001, confirming the halt in the decline already observed in the previous quarter.
"On a current structural and currency basis, the 8.3 per cent decrease in third-quarter 2002 compared with the same quarter of 2001 was affected by an unfavourable exchange rate due to the Euro rise against the US dollar and the fall of currencies in some emerging countries (Argentina, Brazil, South Africa)," Schneider reported.
The low voltage business fared better than medium voltage projects where the markets remained more difficult. In the industrial automation business, sales were penalised by weak industrial investment in developed countries.
Henri Lachmann, chairman and chief executive officer of Schneider Electric, commenting on the group's business in the third quarter, said: "Schneider Electric's markets remained globally stable throughout the third quarter 2002 and continued to show no sign of a significant upturn. Assuming no further deterioration, the group maintains its forecast of a limited decline in full-year sales. In this environment, Schneider Electric pursues the implementation of productivity plans and confirms the continuing improvement of operating the margin rate compared to the first semester of 2002."
