Ducab set to tap growing demand in local market

Dubai Cable Company (Ducab), a leading UAE energy cable manufacturer, has begun production of high voltage power cables to ensure a share of the growing market for this product.

It is also aiming for a Dh2 billion sales turnover by 2010.

Demand for 132kv power cables, used for power transmission and distribution, is growing steeply due to the UAE's massive infrastructural development associated with projects such as Dubailand, said Fareed Mohammad Ahmad, Ducab general manager of sales and marketing.

Currently these underground cables are mainly imported from the Far East.

Ducab, which produces medium and low voltage cables, began commercial production of the high voltage cables this year.

"There is a big market for cables for infrastructure building in UAE. These are the main leads out of generation stations into developed areas. We hope to capture some of that market," said Ahmad.

"How big is the market? How big is Dubailand or other projects?" he asked.

Ducab, a joint venture between the Governments of Dubai and Abu Dhabi, had record sales last year topping Dh700 million.

It expects its earnings to top Dh2 billion by 2010.

A major part of it will be achieved through its new Abu Dhabi factory opened earlier this year, which expanded Ducab's capacity by 60 per cent, said Ahmad.

"We also enhanced existing operations by 20 to 25 per cent in Jebel Ali to streamline production capability whereby all the low voltage cables are being produced in Abu Dhabi and medium and high voltage cables in Jebel Ali," he said. Market indicators show that UAE's construction industry is growing 12 to 15 per cent annually.

"This enables Ducab to expand its share of the market within UAE as well as regional markets," he said.

Ducab currently sells 70 per cent of its production in the UAE. The balance is exported to GCC markets, Middle East and Far East. China and India are evolving markets.

"We have supplied our low smoke and fume (LSF) cables mainly used in underground metro projects, to the metro projects in Delhi [India} and Iran. We hope to be able to supply to the Dubai metro light rail project too," he said.

"We are backed by the expertise of BICC UK which did the London underground and chunnel tunnel project. This provides us the capability to execute such projects," he said.