Thursday, Mar 06, 2014
Dubai: After acquiring AEI Cables in the UK, Dubai Cable Company (Ducab), a cable manufacturer, may land its next acquisition deal in Africa.
“Maybe acquisitions or maybe building a new factory in West, East and North Africa,” Andrew Shaw, Ducab’s managing director, told Gulf News in a phone interview on Thursday.
He said that the company is looking at ways to increase its sales in these areas. It already exports to Africa, as well as the Gulf Cooperation Council (GCC) countries, Hong Kong, the UK and Australia.
“We want to diversify our products into more specialised areas and move decisively overseas in manufacturing,” he said.
Ducab’s acquisition of specialist cable maker, AEI Cables, includes all of the company’s manufacturing assets and its 200 employees, according to the company statement. Shaw did not disclose a value for the deal.
Ducab is owned by the Investment Corporation of Dubai and Senaat, Abu Dhabi’s industrial conglomerate, formerly known as General Holding Corporation.
It has five manufacturing facilities in Dubai and Abu Dhabi, including Ducab Jebel Ali, Ducab Mussafah 1 Factory, Ducab Mussafah 2 Factory, Copper Rod Factory and High Voltage (HV) Cable Systems Factory.
With the acquisition, Ducab has gained its first overseas plant and marked its entry into the European market.
AEI Cables is expected to help Ducab expand its product portfolio by adding more niche and specialist products, and quicken “expertise development” in its factories in the UAE, according to the statement.
“Our intention is to reinvigorate the operations at AEI Cables, and to expand both home and export sales,” Shaw said.
The company will continue to manufacture cables for the industrial sector including defence, construction, rail and oil and gas.
With the acquisition, Ducab plans to combine its products with that of AEI Cables and export them to the UAE, the rest of the GCC, and Africa, according to Shaw.
Ducab has supplied cables for a range of projects, such as Jebel Ali Port’s new $850 million container terminal.
AEI Cables supplies products for shipbuilding, mining, rubber industrial, rail, tunnels, airfield lighting and shipping.
By Sarah Algethami Staff Reporter
Gulf News 2014. All rights reserved.
