The Dh220 million Ducab Aluminium Company (DAC), which opened on Wednesday plans to export 75 per cent of its output to overseas markets, its chairman said in Abu Dhabi.
A joint venture between Abu Dhabi-based Senaat (40 per cent) and Ducab (60 per cent), the new manufacturing facility was inaugurated by Shaikh Hamed Bin Zayed Al Nahyan, Chairman of Abu Dhabi Crown Prince’s Court at Khalifa Industrial Zone of Abu Dhabi (Kizad).
The company will manufacture 50,000 metric tonnes of aluminium rods and conductors per annum once it reaches its full capacity, Jamal Salem Al Dhaheri, chairman of Ducab and chief executive officer of Senaat told reporters in Abu Dhabi.
“Seventy five per cent of the products would be exported overseas including markets like India, Africa, Middle East, South and North America while the remaining production will be for the local use,” he said.
Emirates Global Aluminium will supply molten aluminium to manufacture products at the new facility.
DAC is the second aluminium project for Senaat in Kizad after Taweelah Aluminium Extrusion Company (Talex), which is a joint venture with Al Ghurair Group’s Gulf Extrusions.
For Ducab, the production plant in Kizad will be the company’s sixth in the UAE alongside its three facilities in Musaffah and two in Dubai.
According to Dr Ahmad Bin Hassan Al Shaikh, vice-chairman of Ducab, the new company has already signed rod supply contracts with customers across the GCC (Gulf Cooperation Council), India, Lebanon, North America and select markets in Africa.
Further expansions are also being planned for Latin America and Europe as the company targets export sales of over Dh300 million in 2018, he said.
“Ducab Aluminium Company marks an important milestone in the UAE aluminium sector and adds to a growing number of downstream ventures in aluminium being developed in Kizad as part of the UAE’s ambitions to further diversify the national economy. Proximity to Port Khalifa is a real advantage for this export orientated business,” added Al Shaikh.
The UAE is investing heavily in the development of industries as it focuses on diversification of the economy away from oil.
Source: Gulf News