Ducab reports record 2010 sales.
Volume growth was 47 per cent with full realisation of copper rod capacity, the company reported. It anticipates a further increase in volumes of about 15 per cent this year compared with 2010 despite a rise in copper prices. No profit figures were provided.
Ducab reported it maintained its UAE market share at between 33 and 50 per cent, depending on the cable segment.
Last year's record sales comprised cable and wire sales of Dh2.2 billion while the external sales of copper rod accounted for the balance Dh1.4 billion. Significant areas of growth included 22 per cent higher sales to utilities and a 143 per cent increase in sales to the oil, gas and petrochemical sector.
Ahmad Al Shaikh, chairman of Ducab, attributed the company's success to expansion into new sectors and markets within the Middle East, Europe, Africa and Asia, as well as the addition of eight new product ranges to the company's portfolio.
Cost and efficiency improvement contributed too with savings of Dh17 million achieved through operational efficiencies and cost optimisation initiatives.
In 2010 Ducab repaid on the due date Dh182 million and pre-paid Dh100 million, representing 35 per cent of term finance obtained for previous expansions. Ducab's shareholders equity has also increased by Dh100 million by the end of 2010, besides a dividend payout of Dh50 million.
Ducab is building a Dh500 million high voltage cable factory in a joint venture with Dewa and Adwea, each of these utility firms having a 25 per cent share.
'This exciting project is nearing completion and will be the major addition to the product range this year, catapulting Ducab to the next level with extra-high voltage cable systems up to 400 kV produced in a world-class facility here in the UAE,' said Al Shaikh.
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