Ducab signs deal with Qatar utility

Ducab signed a Dh50-million deal - its largest in the Gulf - to manufacture, hold stocks and supply all cable requirements of Qatar General Electricity and Water Corp (Kahramaa) over a two-year period.

Ducab also plans to manufacture new types of products - fire performance and new pilot cables - during 2002, after obtaining approvals from the board in March, said Farid Mohammed Ahmed, Ducab sales and marketing general manager.

Towards the year-end, Ahmed expects Ducab to reach the 2000 sales mark of Dh404 million with 75 per cent local sales and 25 per cent abroad (including 15 per cent for the Gulf).

Ducab invested Dh100 million last year to raise production capacity from 25,000 to 35,0000 tonnes annually. This includes 40, 50 and 10 per cent of medium voltage, low voltage and building cables respectively.

"A budget for next year has been set by Ducab with a 20 per cent targeted growth, mostly generated from the Gulf."

On the contract with Kahramaa, Ahmed explained it includes the supply of 11kV medium voltage, low voltage and pilot cables for infrastructure projects.

Ducab won from amongst several pre-qualified international and GCC cable manufacturers including firms from Saudi Arabia, Kuwait Gulf Cables, Alcatel, Pirelli and others, said Deb Mazumdar, technical sales manager.

The 11kV medium voltage power cables will be used to connect 66/11kV substations to 11kV/415 V substations located closer to the load centres and consumers, explained Colin Paskins, managing director.

Low voltage cables will connect 11kV/LV substations to the consumer load.

The actual supply of cables during the two-year agreement will be made directly to Kahramaa's contractors as required on a daily and weekly basis, from the stock held onground with Ducab's marketing arm in Qatar, Jassim bin Khalid-BICC.

"The agreement specifies the 'call off' supply of cables in cut lengths, thus relieving Kahramaa from tendering, administrating and holding stocks of cables and ensuring substantial savings," said Paskins.

Cables will be manufactured at Ducab's medium voltage manufacturing facility in Dubai.

Paskins, said Ducab, as a result of the deal, has set up a web-based provision, e-Next, along the lines of a B2B e-commerce solution that allows long-term clients to keep track of the execution of their purchase contracts.

"Kahramaa's agreement with Ducab signifies a new era in industrial cooperation and trust among GCC states. They do not need to look global for the supply of industrial goods as regional manufacturing units meet international standards of quality and logistical support," commented Abdullah bin Hamad Al Attiyah, Qatari Minister of Energy, Industry, Electricity and Water and Kahramaa chairman.

On the new products, Ahmed said: "We plan to produce pilot cables; complementary products going either with medium and low voltage. We are also looking at adding fire performance cables that can bear 1000 degree of heat. Ducab already produces low smoke and fumes cables (LSF)."

Proposals are now drawn up for other departments for similar agreements. The GCC cables market, noted Ahmed, is worth $6 billion and Ducab's sales are weak in the Gulf because of competition by Gulf firms and others.

September 11, Paskins said, did not hit Ducab and local economy except for a turndown in visitors and construction projects.

"However, this will pick up and gives Ducab more challenge and competition."