Dubai-based Danube Building Materials has launched its operations in China, said its top official.
The company is expected to make this announcement public at the Index 2004.
The new facility, Danube China, spreads across a 1,500 square feet of office facility in Shanghai, which is expected to include a logistics centre and warehousing facility in future.
"This is the first such initiative by a Dubai-based company and it gives us immense pleasure to launch this new venture, which will transform our company into a global entity," said Rizwan Sajan, chairman of Danube Group of companies.
"China has seen tremendous growth in the manufacturing and trading sectors. Today, China is perhaps the most happening place in the business world.
"We have already hired 10 people with local knowledge to look after the operations in China. With the ongoing construction boom, we expect the construction and building materials sector to remain buoyant for the next few years. So, this is the right and timely move for us.
"Our China operations will help us to serve a growing list of global clientele spread across India, Pakistan, China, Far East, Middle East and Europe.
This will help us ship products directly from China to the intended destinations, reducing delivery time."
In China, the geographical stretch of the factories, the language barrier, the quality checks, the arrangement for shipments all of these are major obstacles for the individual buyer. "But when you enter Danube in China the friend philosopher and guide, whether you need a new material or want a better price or supplier for the existing one whether you need a sample by air or need to accommodate part shipment, Danube China is there to provide the service. With Danube China you will discover a single source for all your China requirements," he said.
Danube, whose annual retail sales this year is expected to cross Dh200 million, is in expansion mode. It recently opened new showrooms in Sharjah and Oman. The launch of its operations in China comes at a time when many leading players in building materials and construction sector are looking eastwards to source materials more efficiently as the region is currently witnessing a construction boom.
Sajan said, he expects the China branch to net Dh50 million business in its first year.
The building materials market in the UAE is worth about Dh2 billion, controlled by 50 large, medium and small players, with 10 large companies controlling about 50 per cent of the market.
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