Ducab Group Announces Profitable H1 2020 Despite Covid-19
Ducab Group, one of the UAE’s largest industrial manufacturing businesses, has announced that overall profitability for the first half of 2020 has been maintained due to the resilience of its diversified cables and metals business with all its manufacturing done in the UAE.
Commenting on the company’s performance, Dr. Ahmad Bin Hassan Al Shaikh, Chairman of Ducab, said: “The current COVID-19 pandemic has tested businesses around the world—including the manufacturing sector.
"Resilience and business continuity have been the cornerstones of Ducab’s strategy, supported by strong supply chain partners and the deep commitment from each member of the team.
"Ducab cables and metals businesses have thus remained profitable during an extremely challenging time. All of this has been possible while upholding stringent health and safety standards, ensuring that customer service remains unimpeded.
"Moreover, strong cash flows allowed debt levels to reduce in the core business, a result of which Ducab has brought down the total borrowings by an impressive 43% compared to the levels in H1 2019.”
Jointly owned by ADQ (through Senaat) and ICD, with six manufacturing facilities across four sites in the UAE, today Ducab group has a manufacturing capability of over 115,000 metal tonnes of high, medium, and low-voltage cable solutions.
Additionally, Ducab has an upgraded production capacity of 180,000 tonnes of copper rod and wire per annum, complemented by 55,000 tonnes per annum of aluminium rod and overhead conductor.
Ducab Cable Business, the largest part of the group, delivered a flat sales volume of just under 40,000 MT of conductors vis-a-vis last year. UAE being the home market, consumed the largest share of the cable and wire production with demand from Utilities, building construction industry and Oil and Gas sector fared better than expectation.
During the first six months of 2020, Ducab High Voltage (DHV) cable systems set a new H1 volume record by delivering 25% more kms of HV cables as compared to the same period last year.
External sales of copper rods from Ducab Metal Business (DMB) grew by over 15% in H1 of the current year.
Ducab Aluminium Company (DAC), also posted an impressive performance, having increased its supply of aluminium rods and overhead conductors to global customers by more than 2%, compared to the same period last year, keeping the Abu Dhabi based plant running flat out as a result of this demand.
Ducab group continues to export 60% of its overall rod, wire, and cable production around the world. A diversified customer base, matched with the ability to reach new regions, was a fundamental contributor to the company’s impressive H1 results.
Dr. Al Shaikh added: “Moreover, on behalf of everyone at Ducab, I express my utmost thanks to the leaders of the UAE for the robust measures implemented to keep our communities safe during the COVID-19 pandemic.”