By Elsa Baxter
Retailer plans move into Africa and China while increasing presence across Mideast.
Building materials retailer Danube announced on Monday plans to expand into Africa and China while strengthening its presence across the Middle East.
The company said it will open new stores in Qatar, Saudi Arabia and Oman as well as moving into China, the base of one of its major manufacturing plants, through dealer and franchise networks, according to a statement.
“With the global economy approaching the recovery phase and investors starting to regain confidence in the regional market as a result of massive government actions to revive the construction and real estate industries, we are expecting the demand for building materials in the Middle East and Africa to witness a significant increase this year,” said Rizwan Sajan, chairman, Danube Building Materials.
The company has a total of 22 stores – 16 in the UAE, two in both Oman and India, and one in both Bahrain and Saudi Arabia. Nine of these stores are ‘Danube Buildmart’, a brand the firm intends to increase to 16 by the end of this year, with a AED200m investment.
Danube said it has also invested AED50m in a new 1.3m sq ft manufacturing facility in Dubai’s TechnoPark, which will be functional by early 2011.
“We are taking major strides to acquire major market share thought the MENA region in the next five years. We believe that this is the perfect time to expand to be able to place ourselves in a strategic position to fully leverage the opportunities once the market fully recovers,” said Sajan.
Danube recently announced that it is looking at an initial public offering (IPO) listing in Saudi Arabia or the UAE within the next five years.