April 23, 2013
Ducab has announced impressive results for 2012 during a press conference held in Dubai. Key areas of growth in 2012 included 24% higher sales to the Oil, Gas and Petrochemical sector and an increase of 42% in cable exports including a 72% increase in International markets. Ducab revenues of AED 4.2 billion were lower than the previous year turnover despite a small increase in cable volumes. This was due to a 10% drop in copper prices over the same period coupled with the change in product mix.
Commenting on the results, Chairman of Ducab, Eng. Jamal Al Dhaheri said: “Our success in 2012 was the result of successful expansions in new markets and introduction of new products coupled with tight financial control. We have ventured into new sectors and markets across various territories. Ducab increased market share in the core market of UAE despite increasingly difficult market conditions in 2012. Ducab’s traditional strength in the home market was reinforced with innovative promotions to support the distribution chain.”
Another highlight was the first full year of operation of Ducab HV, the AED 500 million high voltage cable plant that opened during the previous financial year. In addition to supplying high voltage cables to both its utility partners, ADWEA and DEWA, Ducab HV was also successful in winning its first major export order for MEW Kuwait valued at AED 62 million. This export success was achieved two years ahead of the target set in the original business plan. Ducab HV also successfully completed 132,000V system type tests in its own extra-high voltage test facilities under the close scrutiny of the utility specialists and independent third party expert witnesses.
Ducab’s cables and copper products are currently sold in over 40 countries worldwide across the Middle East, Europe, Africa, and Far East. Approximately 55% of Ducab’s total sales are made outside the UAE market, as Ducab looks to penetrate new high growth markets in Africa and Asia.
Mr Al Dhaheri noted that Ducab has continued to invest and develop the business through the recent downturn and proudly announced that Ducab will shortly start production of Rubber Cables at its Musaffah Abu Dhabi factory. These cables are used in specialised industrial applications and it is believed that Ducab will be the first company to manufacture them in the MENA Region.