Ducab launches new subsidiary – DMB – with copper and aluminium solutions during the 45th edition of Middle East Energy
UAE-based Ducab has announced that its consolidating its metal operations into a new subsidiary – DMB (Ducab Metal Business), a dedicated business unit within the Ducab group of companies. Mohamed Al Ahmedi will head the business.
Al Ahmedi, in a statement, said that as a standalone business dedicated to this field, the creation of DMB will allow them to further improve the service of their clients whilst opening new opportunities to expand their reach. By further developing their capacity for metal solutions and services, DMB can contribute to the UAE’s flourishing industrial supply chain and the UAE’s strategy to champion industrial investments, he added.
Ducab’s CEO Andrew Shaw explained to MECN: “DMB is a 100 per cent ‘Made in UAE’ solutions provider. We have moved our existing business, which was the copper rod business – we have been doing that for 10 years now, selling into mainly regional markets for copper – we have moved the assets of that business and the management team into this new company. So, we have given them their own entity now rather than being part of the cable business.”
He said that the DMB management team will manage the copper rod business and the aluminium rod business, which is a separate company called Ducab Aluminium, but under the umbrella of DMB. The reason it’s being done now is the business has substantially grown over the last 10 years, Shaw said.
“it’s turning over $540 million and 75 per cent of the sales are export; we are selling globally. The aluminium business in particular is 95 per cent export, which we are selling to Europe, North and South America, throughout Africa, and of course the Middle East region.”
“The copper business is a bit more regional; we are selling into Africa, but especially into GCC and India. So, when you have got a business with that sort of scale, its own customers, its own product line, and its dynamic – I mean DMB – the metal business deals with different customers and has a different rhythm than our low voltage, medium voltage cable business.”
“Moreover, in 2019 we increased our copper capacity by 30 per cent to 175,000 tonnes and this enhanced capacity, along with our 50,000 tonnes of aluminium, will allow us to grow the number of markets we serve. Additionally, as the business has grown we have thought that now is the time for it to have its own identity, and forge its own path, which is separate from the path we are envisioning for our cable business.”
Shaw emphasised that they are completely aligned with the UAE Industrial Strategy. “All our manufacturing assets are here in the UAE and we are probably one of the largest non-oil, non-aluminium manufacturing businesses in the UAE. The company builds upon Ducab’s extensive expertise and capitalises on the UAE’s strong position in the global metallurgy markets.”
“DMB will provide customers with an effective supply chain and smart financial management instruments. It will also seek to expand business potential by tapping into the global demand for tailor-made products, designed specifically to meet the unique needs of our customers’ dynamic industries,” he concluded.