Ducab Aluminium Company reports improved profit after moving into aluminium

Ducab, a leading manufacturer of high-quality wire cables and cabling products from UAE, reported improved profit and exports in 2016 after moving into aluminium despite the tough market situation.

The company reported strong financial performance in 2016 with 10% increase in sales volumes and 25 per cent growth in its export business. The company also reported an EBITDA growth of 15 per cent last year, with no comparative numbers. The company, which is jointly owned by Investment Corporation of Dubai and Abu Dhabi-owned industrial conglomerate Senaat, made these announcements in its annual report on Tuesday.

Commenting on the results,  Ducab’s outgoing chairman, Ahmad Al Shaikh said, "Despite another challenging year, the Ducab team delivered… [an] improved sales performance [last year] that resulted in marked improvement in profitability across all business units."

“Continuous focus on operational efficiency coupled with successful implementation of several manufacturing optimization initiatives aided the improved results overall he added. 

Mr Al Shaikh was replaced by Jamal Al Dhaheri as chairman in March under the rotation system Ducab’s two owners have in place. The company said that it has reduced its short-term borrowing by Dh228 million and increased overseas sales by 25%. This included last year’s breakthrough deal to supply the bulk of cabling for the two Shin Hanul nuclear reactors in South Korea. 

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Ducab plans to expand its aluminium product profiles further in the coming year. Last year, Ducab Aluminium commissioned its first factory, a $60m plant at Khalifa Industrial Zone Abu Dhabi (Kizad), adjacent to Emirates Global Aluminium, from which it would source molten aluminium directly. DAC was EGA’s first customer to receive the delivery of molten aluminium from their Al Taweelah smelter via the Hot Metal Road. Ducab plans to officially open the Kizad plant later this year and include aluminium rods and conductors to its product portfolio after ramping up the capacity to 50,000 tonnes per annum.     

Al Dhaheri, the new Chairman said: “Our company’s ownership structure represents a unique partnership between Abu Dhabi and Dubai, and I am eager to continue the efforts to position Ducab as one of the most successful UAE-owned manufacturing brands.”