In the first major expansion outside its Dubai base, Dubai Cable Company (Ducab) has announced it is constructing a state-of-the-art factory in Abu Dhabi, to be commissioned by November 2004, for manufacturing a wide range of power cables. It will also add capacity at its existing factory in Jebel Ali. Total investment will be Dh125 million.

Ducab (Abu Dhabi), coming up in the new Abu Dhabi industrial city at Mussafah, has been designed to increase the combined copper processing capacity of Ducab in the two plants to 60,000 tonnes from the current 35, 000 tonnes at Ducab Dubai.

The new plant will have a production capacity nearly similar to that of Ducab (Dubai) in copper processing, but will make complementary products. It will primarily serve the UAE as well as export markets in the GCC and beyond.

"It is appropriate that Ducab should have a presence in Abu Dhabi as the company is owned jointly by the governments of Abu Dhabi and Dubai," said Saeed bin Hamooda, director of finance and administration, Department of Economy, Abu Dhabi, and Ducab board member.

"The move signifies a vote of confidence in the high standards and working practices adopted by Ducab to emerge as the region's leading producer of power cables. We are pleased that the same standards that have made Ducab a prestigious brand in the local and international markets will be adopted at the Abu Dhabi plant, using state-of-the-art technology from the world's best specialist suppliers."

Bin Hamooda said the setting up of Ducab (Abu Dhabi) would fulfil the requirements of clients from Abu Dhabi, who would not only get faster delivery but also enjoy a cost-effective advantage due to lower transportation costs.

It would also provide a further boost to the efforts of Abu Dhabi authorities to enhance industrial activity in the emirate by diversifying its manufacturing sector.

Ducab chairman Mohammed Ali Alabbar said the new plant in Abu Dhabi would considerably augment Ducab's production capacity and provide a further boost to the national economy. "By replicating the success of Ducab (Dubai), the new factory will extend the benefits to new customers as well as generate substantial employment. We are confident that Ducab (Abu Dhabi) will excel in all its activities, because it is based on the same world-class principles and work culture that have made the Dubai factory such a major player in the power cables market," he said.

Ducab, established in 1979, has not only recorded remarkable success in the production of quality cables but also achieved tremendous recognition for its occupational safety and environmental standards. In 2002, it won the joint manufacturing industry sector award, worldwide, from RoSPA (Royal Society for the Prevention of Accidents) and the prestigious AGCC Environmental Award. The company said the Abu Dhabi factory would follow the same safety and environmentally friendly policies that have earned Ducab international acclaim.

Ducab managing director Colin Paskins said the new Abu Dhabi plant would be financed through internal earnings and bank facilities and have nearly the same production capacity as that of Ducab Dubai. Consequently, revenues too were set to double to reach Dh 800 million by the year 2006.

"Ducab (Abu Dhabi) will be built on highly advanced technology, using the best of European and Japanese expertise incorporating proven methodologies for efficient production and shop floor practices," said Paskins. "The design is such that it leaves room for future expansion. The new factory will have all the features that have helped Ducab enhance working performance as well as safety, including the adoption of the Sigma Six performance improvement programme and the Japanese 5 S methodology for shop floor management."