Ducab Structure

Ducab was set up in 1979 as a joint venture between the UK’s BICC Cables and the state-owned Investment Corporation of Dubai. The company was established to supply Dubai’s construction industry with cables from its base at Jebel Ali.

In 2001, Ducab’s ownership changed when BICC Cables sold its 50 per cent stake to the state-owned Gulf Holding Corporation from Abu Dhabi. The move created the first 50:50 joint venture between the UAE’s two largest emirates. Since then Ducab has opened and acquired new manufacturing plants in Abu Dhabi.

The company’s managing director is British-born Andrew Shaw. He joined the company in August 2007 and has many years’ experience in the cables industry. He was previously chief executive officer of Prysmian Cables and Systems in China and has also worked in managerial roles at BICC Cables.

Ducab employs some 900 staff, of which UAE nationals comprise more than 7 per cent. In 2009, the firm posted revenues of $653m.

Ducab Operations

Ducab’s core activity is still the manufacture and sale of cables, but over the years the company has integrated its production processes and is now organised into three business divisions: Ducab Cable; Ducab Connect; and Ducab Copper.

Ducab Cable produces a wide range of energy cables for the construction, oil and gas, and power sectors. Ducab Connect sells cable accessories and components to compliment the cable business. Ducab Copper produces copper wire, a major component in cables.

The firm owns and operates three cable manufacturing plants, a polyvinyl chloride compounding plant and a copper mill. The copper mill and two of the cable factories are based at the Mussafah industrial area in Abu Dhabi.

Ducab manufactures a wide range of cables, including high-voltage cables up to 132kV, medium-voltage, low-voltage, fire resistant cables, instrumentation and pilot cables, as well as control and auxiliary cables. The firm’s total production in 2009 was 110,000 tonnes.

Ducab’s $45m copper mill, which opened in 2008, is the only such facility in the UAE. It converts raw copper cathode imported from India and Oman into copper wire rods. The plant has a capacity of 110,000 tonnes a year (t/y), with the potential to expand production to 160,000 t/y. About 60 per cent of the mill’s output is used internally with the remainder sold to local markets and customers in India.

Ducab has sales offices throughout the region, in Bahrain, Qatar, Oman and Saudi Arabia and its output is sold in more than 40 countries. The company’s biggest market is the UAE, which accounts for 60-70 per cent of total sales. Ducab says it has a 50 per cent share of the UAE cables market. It has supplied cables to key projects such as the world’s tallest tower, Burj Khalifa, and the Dubai Metro.

Ducab Ambitions

In early 2011, Ducab will open a new high-voltage power cables manufacturing plant in Jebel Ali. The facility is being built in joint venture with Dubai Electricity and Water Authority (Dewa) and Abu Dhabi Water and Electricity Authority (Adwea) and will produce cables up to 440kV. The completion of the project will mark the end of Ducab’s five-year, $272m investment drive to boost capacity and integrate production.

The management now plans to consolidate the firm’s position as one of the region’s largest cable manufacturers, with the aim of gaining a 25 per cent share of the GCC cables market.

Ducab is also eyeing other investment opportunities. The company announced plans in July 2009 to open a cables manufacturing facility in Qatar. However, problems finding a suitable location appear to have stalled the scheme for now. Saudi Arabia, Africa, Asia and Europe have also been cited as offering potential for future expansion. At present, the bulk of Ducab’s output is sold domestically, however, the firm hopes to expand its sales network throughout the Middle East. The firm has identified strong growth opportunities in North Africa, India and Iraq.