5% rise in profitability for 2019 confirmed by Ducab Group
Ducab Group, one of the UAE’s biggest manufacturing businesses, has declared a 5%climb in overall profitability in 2019, driven by gains in key areas of its cable and metal manufacturing portfolio.
Mentioning on the company’s performance in 2019, Dr. Ahmad Bin Hassan Al Shaikh, Chairman of Ducab, stated: “Ducab’s 40th anniversary of operations saw our place as a leading producer in the UAE solidified by a robust dedication to both the local and global markets. We are proudly flying the flag for ‘Made in UAE’ products throughout the globe, with Ducab cables and accessories now used in more than 30 countries.”
With six manufacturing facilities throughout four sites in the UAE, currently Ducab has a manufacturing capability of over 115,000 metal tons of high, medium, and low-voltage cable solutions, an upgraded production capacity of 175,000 tons of copper rod and wire per year, complemented by 50,000 tonnes per year of aluminium rod and overhead conductors. Ducab exports 60% of its overall production globally.
The Ducab Group secured a lot of strategic contracts during the year. This consist of a series of partnerships with ADNOC to offer its advanced range of cables and overhead conductors designed particularly for the oil and gas industry, as well as providing continued maintenance, repair, and evaluation of existing cables throughout ADNOC’s extensive operations.
Ducab Cable and Wire Business:
With its prosperous supply record to the soon-to-start Barakah nuclear power plant in UAE, it was also a year in which Ducab further implemented its dedication towards improving the UAE’s alternative energy sector. Ducab has improved its own rooftop solar plant at its new head offices in Dubai for on-site power generation, part of the company’s broader efforts to support the UAE’s solar energy agenda. The company was also the provider for a wind scheme in the Dhofar region of Oman, and provided its cables for a numerous of solar power plants within the MENA region.
Outside of the energy sector, Ducab affirmed previous year that it will meet over 90% of the cable requirements for theExpo2020 project which includes the Route 2020 Metro expansion. The company has also been a supplier to the Riyadh Metro in KSA and Delhi Metro and Lucknow Metro rail projects in India.
Ducab HV/EHV Business:
In 2019, Ducab-HV (DHV) made good progress towards key strategic targets which includes enlarging the product range and developing new markets. Highlights included successful manufacturing and delivering of DHV’s first 220kV cable order to Abu Dhabi National Oil Company (ADNOC); achieving record monthly production volume in November 2019; energization of the full turnkey 132kV system for Phase 3 of the Mohammed Bin Rashid Al Maktoum Solar Park; completing a 220kV system type test, and starting the one-year pre-qualification test in a European-based test laboratory.
Ducab Metals Business:
Meanwhile, Ducab’s copper and aluminium business—which includes Ducab Aluminium Company (DAC) and the Ducab Copper Rod Plant, currently consolidated into a new business unit Ducab Metals Business (DMB)—also saw impressive gains. In 2019, Ducab’s copper and aluminium business generated over AED2 billion in sales with over 75% of the overall production being exported. The company also increased its copper capacity by 30% to 175,000 tons, along with 50,000 tons of aluminium, which is allowing the company to grow the number of markets it serves.
Over four decades, Ducab has enlarged in parallel with the UAE’s wider investments in industrial manufacturing, guided by the Dubai Industrial Strategy 2030 and the Abu Dhabi 2030 vision.
Referring to the COVID-19 pandemic and its effect on Ducab, Dr. Al Shaikh stated that the company is completely dedicated to protecting its workers whilst maintaining business operations as per the advice from the authorities. “Ducab factories are all operating and there have been no important interruptions in the company’s supply chain due to COVID-19. Remote working for office staff and other distancing measures are in place but we have been careful to make sure that there is no impact on customer service and deliveries.”