Dubai Cable Co (Ducab) is committing Dh125 million to a new plant in Abu Dhabi and capacity expansion at its facility in Jebel Ali.

The Abu Dhabi project - located at Mussaffah - is to be commissioned by November, 2004. Ducab has leased the land.

The first set of tenders for the project should be out within the next 30 days or so, according to a top official.

Ducab is also working on the financing, which will be through a mix of bank borrowings and own cash reserves.

With the commissioning of the Abu Dhabi plant, which will roll out low-voltage cables of between 600 and 1,000 volts, Ducab's total manufacturing capacity will be 60,000 tonnes from the current 35,000.

With the new capacities, Ducab's stated aim is to increase its local market share by at least 10 percentage points, officials added. Of late, there has been intense competition from other regional cable manufacturers, especially from Saudi Arabia.

The company - which is equal owned by Dubai and Abu Dhabi governments - is also looking to double revenues to Dh800 million by 2006, when the full benefits from the new capacities come through.

In 2001, revenues were Dh382 million.

"We conducted an extensive feasibility study for six months on the Abu Dhabi venture before deciding to make the move," said Colin Paskins, managing director.

"The design is such that it leaves room for future expansion. In recent years, Ducab has been increasing its local market share, though not necessarily meeting every project that is there in the country. The new capacities will help us there."

Operational for 23 years, the Jebel Ali plant had been through two major expansions - in 1991 and 1998.

Prices of copper, the prime raw material for the cables, has seen some fluctuations - on the higher side - in the international markets during the near term. But they should soon stabilise, according to Graham Cheetham, general manager for manufacturing.