Danube generates Dhs1.1bn in sales revenues in 2008

The company, which has exceeded its planned target of Dhs1bn for the year 2008, has also revealed plans to invest further in its core business. Company officials have further announced that Danube has enough margins to ride out the current global recession, and that it is expecting to secure a 30% rise in revenues for 2009. In line with this, Danube is currently in the process of recruiting new employees for various departments across different regional offices and branches.

The company's outstanding growth has been the result of its dedicated focus on establishing facilities in high potential production locations, which supply a significant bulk of the high quality products for its regional and international clients. Maintaining a high level of quality across all its products, and considering the current economic climate, the company is currently in the process of ensuring the smooth delivery of its products to customers. Among Danube's products that had the most intensive promotional activities and gained the highest sales during 2008 are its wood offerings, including medium density fibreboards and plywood, as well as sanitary, hardware and steel items.

Rizwan Sajan, Chairman, Danube Building Materials, said:

"In spite of the recession, we aim to maintain a healthy growth in 2009 with the strong fundamentals we have acquired through the continuous operations of more than 18 Danube outlets across the GCC."

"Offering more than 12,000 products under one roof with a big network, allowed us to address our buyers and the products they are demanding. Moreover we are not retrenching any staff and haven't made any salary cuts; in fact, we are recruiting new members on a regular basis," he added.

For 2009, Danube has charted plans to expand its business by inaugurating its 'Building Materials Mart' in Ras Al Khaimah and Bahrain, and a new one-stop shop facility in KSA. Despite the current market recession, the building materials company still considers the Middle East region as the market with the most growth potential, and is keen on supplying the rising demand for key products such as steel, MDFs, laminates, timber, glass, aluminium and others.

"Our vision as the leading supplier and one-stop shop for all building materials is to cater to the requirements of our entire customer base, from individual homeowners to contractors and developers working on mega projects across the region. Even though many of the projects are being shelved in this area, there are still many ongoing projects which should keep us busy for the next 2-3 years and by that time surely, the global economy is expected to recover and businesses will start to rise again," concluded Sajan.

In the UAE, Danube has undertaken a number of significant projects, including a contract to supply Formica toilet cubicles to the Dubai Mall, in addition to over Dhs200m in new projects across Ras Al Khaimah, Umm Al Quwain and Dubai Techno Park. In the steel business, where most of the traders took a halt, Danube was able to show a positive figure because of the big network it has under its umbrella. Even when the steel prices started falling, the company was able to liquidate its stocks in the fastest time and bought again at the lowest level to come back into the market. In addition to its Dhs200m investment in the steel industry in UAE, an Dhs40m new steel facility in Bahrain was opened, along with a huge investment of Dhs50m in a new steel facility in Oman.