Ducab Aluminium Company (DAC), an Abu Dhabi-based aluminium rod producer, plans to export most of its output as it takes advantage from the shift from copper to aluminium in industrial usage it reported.

DAC, a Dh220 million joint venture between Dubai-based copper and aluminium wire and cable producer Ducab and Abu Dhabi industrial conglomerate Senaat, was inaugurated in Khalifa Industrial Zone of Abu Dhabi (KIZAD). Ducab is a joint venture between sovereign wealth fund Investment Corporation of Dubai and Senaat.

Andrew Shaw, managing director of Ducab, said there was room for its production capacity to grow down the line because demand for aluminium is growing as the cable industry replaces copper with aluminium due the fact that it is more affordable. The shift to aluminium in the GCC has lagged behind that in Europe and will boost demand.

"The cable market is still dominated by copper but aluminium usage has increased in the GCC," Mr Shaw said. "In Europe and the US that shift has already happened."

The executive said DAC had already signed rod supply contracts with customers across the GCC, India, Lebanon, North America and Africa and that it was also planning to export to Latin America and Europe.

The UAE is developing its downstream industry to help diversify revenue away from hydrocarbons. EGA, one of the world's largest aluminium producers, is contributing to the diversification efforts by providing raw materials for downstream industries like DAC.