Danube Building Materials yesterday said it has invested $15 million (Dh55m) to set up Lianyungang Donghai Danube Wood Products Company in China, as part of the company’s international expansion plans.
The move involves construction of three new manufacturing facilities in the Punan Industrial Economic Development Zone in Lianyungang Port, which the company expects to generate $50m in revenues.
The Danube International Trading Company will serve as the local hub for its operations, with the first batch of China-made products expected to arrive in the Middle East by early 2008.
Danube initially forayed into China through the establishment of an office in Shanghai in 2002, which was shortly followed by the launch of a liaison office in Guangzhou to serve as the primary sourcing office for wood products and sanitary fittings marketed by Danube’s distribution facility in Dubai. The growth of Danube’s operations has earned the Dubai-based manufacturer an export licence from the customs department of China, which has paved the way for the formation of the Lianyungang Donghai Danube Wood Products Company.
Spanning 50,000 square foot, the industrial unit comprises three facilities, including a melamine MDF pressing plant, a melamine impregnation line and a backing panel pressing plant and the decor ply production line, all of which have been constructed within a six-month period.
“China currently supplies close to one-third of the materials in the booming construction industry of the UAE. This is reflective of the success of our China-based operations, which has continually shown huge potential in its capacity to manufacture an even greater proportion of high quality products for our regional and international clients,” said Rizwan Sajan, Chairman.
“With the initial success of our established operations in China, we have identified and capitalised on the tremendous opportunity to expand into manufacturing operations in this highly progressive Asian economy. As a result, we believe we are on track to a venerable position as a reliable source of high quality construction material products to address the burgeoning demand from the booming regional real estate market.”
Employing a 100-strong workforce, including a mix of well-trained Chinese and expatriate workers, the Lianyungang Donghai Danube Wood Products Company maintains a three-storey office and utility building, which accommodates an administrative centre for factory operations and the exports, development and accounts departments.
Surrounding the office buildings are the fully automated factories, including a common loading and unloading area. In addition, the entry and exit points have automatic gates, a security room and surveillance cameras to maintain safety.
Danube invests $15m to set up manufacturing in China