Danube launches China operations

Danube China, spread across 1,500 square feet of commercial area in Shanghai, will include a logistics centre and warehousing facility in future. Details of the Dunube China project are to be unveiled at Index 2004, the major trade fair which is being held in Dubai from September 22 to 26.

"This is the first major initiative by a Dubai-based company to establish operations in the Chinese market and it gives us immense pleasure to launch this new venture, which will transform our company into a global entity," said Rizwan Sajan.

"China has seen tremendous growth in the manufacturing and trading sectors. Today, China is perhaps the most happening place in the business world," Sajan added. "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 a long time. 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 in India, Pakistan, China, Far East, Middle East and Europe. This will enable 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 and the arrangement for shipments are major obstacles for the individual buyer. With Danube China coming on the scene, our clients will discover a single source for all China-based material. 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 will be there to provide an integrated solution."

Danube, whose annual retail sales this year are expected to cross Dh200 million, is on an expansion track. It has 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 cost-effectively as the region is currently witnessing a construction boom.

Sajan 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. About 50 to 60 per cent of the imported materials are cosumed in the UAE, the rest being re-exported to the neighboring countries.

The company stocks over 10,000 types of materials at any given time. "Last year, we added a furniture components manufacture factory in Jebel Ali, which has been booked for one year by our customers. This shows the high demand in the market," he said.