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AC16-10
THE LAM PAN G FACTOR THAILAN D IN THE SPOTLIG HT
7 1 0 2 r u o Y r e n n a l p r a ye E D I S N I F R EE
IN FOCUS: Southern India
Tile exports Roof tile markets Plus news, views, analysis and much more!
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News
Contents: AC 16-10 News
Features
6 Inside Asia
30 Lampang: a bright spot for ASEAN
Pressure builds on SE Asia.
8 Welcome
Demonetization hits the sub-continent.
10 Across The Continent
Openings, closures and industry moves from across Asia.
20 International News Our eye on the international arena.
24 Material Matters Raw materials news and views.
26 Comment & Analysis Europe builds the Chinese wall.
With all the evidence pointing to a significant upturn in the fortunes of the Thai ceramic industry, Jahir Ahmed looks at one of the country’s most important employers and exporters – the Lampang cluster – and discusses how tableware and giftware evolution is making a big difference.
44 Roof tiles on the sub-continent
AC looks at how the changing construction climate in Southern Asia is affecting the type and volume of roof tiles that are being ordered.
52 Southern India: a bright new centre Yogender Malik looks at why Southern India is growing in importance as both a tile and sanitaryware product centre and major demand driver for the entire country’s industry.
62 Tile trade analysis
AC wraps up the year by looking at how the landscape of the international tile industry seems set to continue changing as China – the dominant player in global exports – comes under increasing pressure in terms of price and quality…
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AC 16-10
Anaylsis 66 Talking Shop
A World Bank Project is gradually improving the lot of brick workers in Bangladesh and having a knock-on positive effect for the environment, as AC finds out…
72 Insight
Analysis and insight into Vietnam.
76 The Hunter And The Hunted
William uncorks the festive ipad, but still casts his unsympathetic eye over industry issues: this month he asks if the freight issues are negatively impacting Asia’s ceramic industry.
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One of Abdul Rahman, a group of companies and Abdul Karem Saleh Omran TRADE and industry began commercial production of the plant in early 1999, the factory is located in riyadh Second Industrial City and a production capacity of up to (400,000) electric water heater annually. The factory produces electric water heaters sizes (30.50,100,200,250,300 liters) multiple different colors and models, including horizontal and vertical-fashioned style and ground-style central and style.
Al Jawdah company for plastic pipes and fittings, The company was founded in 1994 and is engaged in the production of plastic pipes of the (PVC) and (C-PVC) and (UPVC) and (PP-R) This addition to the production of links all kinds of plastic in all sizes and different thickness are used in various fields such as extensions of water lines with high and low pressure and sewage extensions, telephone and electricity and agricultural extensions, according to the Saudi Arabian Standards for Standards, Metrology and international standards.
Al-Jawdah Ceramics Company was established in 1995 and produces ceramics wall and floor tiles with a wide range of products. The Company produces all decorative products s u c h a s L i s t e l l o , s k i r t i n g e t c , To m a t c h t h e t i l e s . T h e C o m p a n y continuous growth to fulfill the Saudi Arabian and Middle East market requirement.
Group of Companies Abdul Rahman and Abdul Karem Saleh Al-Omran were established in 1975 under the name of Al Omran sanitary ware and specialized in wholesale and retail trade of sanitary ware and accessories, as one of the largest companies imported sanitary ware in the kingdom and the Middle East, where the importation of the major companies and factories World finest varieties and the latest models to suit all tastes and in very large quantity to cover all the request for the large projects and the Group is one of the largest and most famous companies working in this field in Saudi Arabia and the Gulf states in the framework of the Group’s commitment to provide distinctive products has added industrial ACTIVITY through the creation of the group of companies large industrial sophisticated and includes four leading industrial companies under the name of Aljawdah companies, namely:
Visit us at w w w. a l o m r a n . s a / w w w. a l j a w d a h g r o u p . c o m
Email: alomran@cyberia.net.sa / info@aljawdahgroup.com Te l : A l - J a w d a h : + 9 6 6 11 2 6 5 - 0 2 2 8 / A l - O m r a n : + 9 6 6 11 4 2 2 - 3 3 1 6
S. Al- Omran to fulfill the Saudi Arabian Market demand of Ceramic and porcelain tiles.
natural gas and electricity. Investment done by Al-Omran group Mr. Abdul Rahman S. Omran and Mr. Abdul Karim
Plant expected in operation in 1st quarter 2017 with full support of ministry of Kingdom of Saudi Arabia with supply of
Plant capacit capacity.
square meters per annum. The complete building of 9,200 square meter area built for the future expansion to double the
hydraulic Press PH 3200 and PH 6500 and attractive KILN for the production of Porcelain tiles with capacity 13.0 million
TECHNO FERRARI, MARPAK, BMR and FRACCAROLLI/CAMI with latest technology. Plant equipped with Special SACMI
machines are in progress with Italian company machines which are include SACMI, SYSTEM CERAMICS, CIMES,
complex in 2nd Industrial city, Riyadh, Kingdom of Saudi Arabia. Company is under construction and installment of the
Al-Jawdah Porcelain and Ceramic Company is the new established by Al-Jawdah group of companies near to our existing
Inside Asia SETTING THE TABLE; SETTING THE PACE Reduced turnover of ceramic manufacturers in 2015 and 2016 in the ASEAN bloc countries have marred the expansion efforts of many industry players. However, whilst the general construction figures have been slower than hoped, there are pockets of optimism that point towards a more successful 2017 and beyond. The tableware centres of Lampang, in Thailand, are a shining example of what the “cluster� mentality can achieve and as domestic consumption increases to 96m. pieces, and overall production rises to 235m. pieces, then there is every chance that this sector could become a major economic contributor in the next 18 months.
Welcome
India’s overnight move to demonetize has, effectively, hammered some of the country’s more rural-based industries. Not surprisingly, in this regard the heavy clay sector has been one of the hardest hit. Uttarakhand’s largest brick producing industry of Landoura, eight km from Roorkee, has been hit hard by the Centre’s demonetisation decision. However, brick producers are still hopeful that the situation will soon improve after more currency notes of all denominations are available in the market.
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AC16-10
TH E LAM PANG FACTOR THAILAN D IN THE SPO TLIG HT
Y ou r 2017 yea rpl a nn er F REE IN SID E
IN FOCUS:
Southern India Tile exports Plus news, views, analy Roof tile markets sis and much more!
There are around 200 brick manufacturing units known as ‘bhatta(s)’ in Landoura. Approximately, two lakh bricks are loaded in around 300 trucks which are manufactured every month in these units of Haridwar district. The two entities - bulk buyers and real estate, purchase 25 and 50% of the total production respectively.
Striking a positive note, Anita Saini of Devbhoomi developer and builders, said, “I believe demonetisation will have a positive impact on economy and it will be fruitful in long term. Yes, this decision taken by the central government is affecting our businesses at present but it will surely bring some great results in future.”
EDITORIAL Publishing Director Andy Skillen Email: askillen@asianceramics.com Direct line: + 44 (0) 208 123 0196 Fax: + 44 (0) 207 183 7196
ADVERTISING AND DESIGN
“The footfall of buyers has reduced drastically after the Centre's demonetisation move. Only 50 to 60 trucks are now sold out every day. Our business has now dipped to 75% of normal turnover,” said Pradeep Roshian, president of district association of brick manufacturers.
Narendra Singhal Guddu, owner of Kali bhatta told TOI that the brick business in the district has flourished since last year due to availability of fuel in the form of coal, which was earlier a big issue for them. “We purchase coal from Gujarat and the fare of coal-laden truck has to be paid in cash. One coalladen truck costs us around Rs 70,000. Arranging so much cash has now become a problem for us,” said Guddu.
CONTACT DETAILS
WE HAVE NO CASH IN HAND RIGHT NOW. IT IS CERTAINLY A BAD SEASON FOR US...
The situation is becoming more and more worrisome for labourers working in these 200 brick manufacturing units. There are around 60 people including over one dozen families working in each brick unit. “We have no cash in hand right now. It is certainly a bad season for us. Our owner sometimes allows us to purchase grocery and other items on goodwill from local market on credit,” said Wasim (who only uses his first name), a labourer working for Sajal bhatta. It’s going to be a long, tough year for the sub-continent’s brick industries… Happy New Year!
Advertising Sales Paul Russell Email: prussell@asianceramics.com Direct line: + 44 (0) 208 638 0619 Valerie Adamson Email: vadamson@asianceramics.com Direct line: + 44 (0) 208 133 5273 Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839
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Bowhead events OVERSEAS OFFICES China Professor Wen Lu and Wen Xin Email: 18980921123@163.com Tel: +86 28 8701 9077 Fax: +86 28 8701 9077 Bangladesh Jahir Ahmed jahir@asianceramics.com India Yogender Singh Malik yogender@asianceramics.com Sri Lanka Rohan Gunasekera rohan@asianceramics.com
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HEAD OFFICE Bowhead Media Ltd, 57 Oaks Avenue, Worcester Park, Surrey, KT4 8XE United Kingdom
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AC 16-10
Asian Ceramics (ISSN: 1476-1467), is published by Bowhead Media Ltd, registered in the UK no: 6127651
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Ceramics and Glass Council elects new President • Claudio Marani appointed GM for Sacmi Group • Cash crunc bodied tiles take demand hit • Duty change could boost ceramics • RAK Porcelain Debuts at Madison Square • Tab monetisation • Village the latest to suffer from brick kiln pollution • Tariffs to hit ceramic industry? SRI LANKA
Ceramics and Glass Council elects new President Mr. Sanjay Tiwari, Managing Director & CEO of Piramal Glass Ceylon PLC was elected as the new President of the Sri Lanka Ceramics and Glass Council at its 3th AGM held recently at the Cinnamon Grand Hotel, Colombo. Tiwari who took over Mr. Mahendra Jayasekera, CEO, Lanka Walltiles PLC is the 4th President of the Council. Speaking at the AGM, the new presidentappreciated the efforts and the contribution of all the past Presidents, namely, Sunil Wijesinha, DayasiriWarnakulasooriya and Mahendra Jayasekera. He highlighted the contribution of the Ceramic & Glass Industry to the overall economy of the country and their constant efforts in building thebrand
image of Sri Lanka. The Incoming President also emphasizedon the current challengesfaced by the Industry and the need forsupport from the Government of Sri Lanka. He appreciated and thanked Geological Survey & Mines Bureau,Export Development Board,The Employers Federation and ITI of Sri Lanka for their constant support. The following were elected to the Board of Management of the Council;-President, Mr. Sanjay Tiwari (Piramal Glass Ceylon PLC); Vice President, Dr. Jagath Pieris (Royal Fernwood Porcelain Ltd); Secretary, Mr. Navindra Abeysekera (Lanka Ceramic PLC); Assistant Secretary, Mr. Wasaba Jayasekera (Dankotuwa Porcelain PLC); Treasurer ,Mr. YoshinarariShimaya (Noritake
Lanka Porcelain); Immediate Past President, Mr. Mahendra Jayasekera (Lanka Walltiles PLC); Committee Members, Mr. Anura Warnakulasooriya (Midaya Ceramic Co (Pvt) Ltd) and Mr. WipulKularathna, Samson RajarataTiles. The Ceylon Chamber of Commerce functions as the Secretariat to the Council. The Chief Guest for the event was Dr. Indrajit Coomaraswamy, Governor, The Central Bank of Sri Lanka. In his address to the gathering he gave an insight to the current economic situation of the country briefing on the past and subsequent developments, encompassing both internal & external factors that had influenced the current account deficit. He appreciated the efforts of the present
Government in forwarding the economy in the right direction. The Governor also highlighted the importance of signing FTA with neighboring countries like China, India, Singapore and Pakistan. Council Members of the Sri Lanka Ceramics and Glass Council – Standing L/R M/s Rohan Casiechetty, The Ceylon Chamber of Commerce; Wasaba Jayasekera, Dankotuwa Porcelain PLC; Sanjay Tiwari, President Elect, Piramal Glass Ceylon PLC; Dr. Indrajith Coomaraswamy, Chief Guest; Governor, The Central Bank of Sri Lanka; Mahendra Jayasekera, Outgoing President, Lanka Walltiles PLC; Wipul Kularathne, Samason Rajarata Tiles; and Anura Warnakulasooriya, Midaya Ceramics (Pvt) Ltd.
WORLD
Claudio Marani appointed GM for Sacmi Group Claudio Marani is the new General Manager of the Sacmi Group: his appointment by the Board of Directors was made official on 11/10/16. Claudio Marani started working at Sacmi in 1981. Since then he has held various positions abroad, first as project manager in North Africa (for what was Sacmi’s biggest turnkey contract in the eighties) then as area manager for various countries around the world, including the United States, Turkey and all of Eastern Europe. In 1997 he became sales manager at Sacmi Impianti Milan, a long-standing branch of the parent company which, during that period, achieved sales that accounted for 60% of the Group’s volumes. In the early 2000s, he became
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the general manager of the Ceramics Division, a position he still holds today. A graduate in Chemical Engineering, Claudio Marani now takes the helm of the SACMI Group. He brings all the experience and knowhow gained during his years as head of the Ceramics Division, which comprises four business units (tiles, sanitaryware, heavy clay, special pressings) and which, with over 60% of the Sacmi Group’s overall volumes, is the world’s leading supplier of machines and plants for the ceramic industry. In thanking the cooperative’s Board of Directors for placing their trust in him, Marani underlined how he intends to move the Group forwards "by continuing the policy of investment
AC 16-10
and continuous innovation that has brought the Sacmi Group global manufacturing success". President Paolo Mongardi took the opportunity of Mr. Marani’s appointment to emphasize the "encouraging results achieved in the first half of 2016". Following years in which the Sacmi Group posted some of its best-ever results, 2016 "promises to be equally positive in terms of both sales and employment and further growth in sales volumes across all major businesses and markets."
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ch hits Morbi for six • Brick industry feels government pressure • Fullbleware sector restricted by “same old” problems • Khurja feels pain of deINDIA
Cash crunch hits Morbi for six Small diamond and ceramics units in Gujarat are bearing the brunt of the government’s ban on high-value banknotes. Many diamond processing units in Surat have extended the Diwali holiday for workers and 60% of the ceramics factories in Morbi town are likely to have downed their shutters. The diamond industry of Surat, with an annual turnover of about Rs95,000 crore, has seen business decline 25% since the government on 8 November scrapped the Rs1,000 and Rs500 currency notes in a crackdown on black money. The impact of the ban is likely to continue in the run-up to and during Christmas, when global demand for cut and polished diamonds increases. Surat is home to 4,000-4,500 diamond processing units that employ about 500,000 workers. While about 150 firms hold over 50% of the market share and their businesses seems to be unaffected, small units dealing in cash for payment to workers have been the hardest hit by the cash crunch. “About 93% of our clients are in the international markets. The industry had closed down due to Diwali vacation and today about 60% of the units are working. The small scale industries have extended the vacation period till 1 December. But overall the industry is not much impacted because less than 5% of the companies have a majority market share even in terms of employment and their business is not impacted,” said Dinesh Navadia, president of Surat Diamond Association. Diamond tycoon Savjibhai Dholakia, known for giving out cars and flats to employees as Diwali bonuses, said his company Hare Krishna
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Exports has not been impacted by the demonetisation move as they have been paying all employees by cheque. He said that the business was already 10% down during Diwali before the demonetisation. “Everyone has a different business cycle so it is very difficult to say whether one has been impacted or not. Demonetisation is for the overall good of our country. About 20-25% of diamond industry business will be down for some time even during Christmas. It will take a year’s time to be normal,” Dholakia said over the phone. The move by the Centre has, however, brought the so-called Angadia or informal courier business to a grinding halt which Navadia says is a blessing in disguise as it will stop unaccounted money transfers. The diamond industry has been using Angadia services since 1965 when the reach of banks and post offices was limited. There are at least 4050 Angadias who deliver cash and diamonds to their clients in Mumbai and Surat. Often seen as local hawala, the movement of Angadias has been hard to track as they deal largely through cash transfers on the basis of trust and not the physical movement of cash. The Election Commission of India had during the 2012 Gujarat state elections called for a ban of Angadias, but many were back in business after the polls. “From the last five years, Angadia business has been down but they serve about 30% of diamond industry even today and their businesses will be impacted,” according to Navadia. Meanwhile, about 500
kilometers away from Surat, as many as 200 out of 650 large ceramic factories have closed down in the last one week. With an annual turnover of about Rs24,000 crore last year, the industry employs close to 400,000 labourers and produces about 1,600 million square meters of tiles a year. “After demonetisation we carried out an online survey for large factories (having premises of 10 to 30 acres) and found that 200 factories closed last week and 180 more are going to close the coming week due to cash crunch. We have submitted this data to the district collector. About 3,000 trucks are required for getting raw materials from Rajasthan every day. Every factory needs anywhere between Rs2-5 lakh to pay to transporters which is by way of cash. Also there is a problem of cash crunch in dispatch of finished goods to our customers across the country,” said K G Kundaria, president of Morbi Ceramic Association. He said that business would be down from Rs65-70 crore per day to Rs25 crore a day. Also most of the unskilled workers employed in the ceramic industry are migrants from other states and they have been paid in cash so far. The ceramic industry in Morbi supports over 2,000 auxiliary industries, including paper mills, packaging and engineering workshops and ceramic machinery factories and they have also been impacted. With business being already down by 30% and a similar impact seen in coming week, Kundaria says that the state government has initiated a process to help ceramic industry workers open bank accounts. He is hopeful that the
government will allow ceramic factory owners to withdraw up to Rs5 lakh in cash daily. The ceramic industry is mainly dependent on the real estate sector and with housing prices expected to drop up to 30% in major cities due to demonetisation, the Morbi industry would be in for more challenging times. Even so, Kundaria said that he and the entire ceramics industry of Morbi support demonetisation and that are prepared to bear business losses for the next one year.
NEWS IN BRIEF Charu Ceramic Ind. Ltd. of Bangladesh, (sister concern of Great Wall Ceramic Ind. Ltd.) has signed a MoU with Siam Sanitary Ware Co. Ltd., the largest sanitary ware manufacturer of Thailand, to produce world famous COTTO brand products in Bangladesh. The companies emphasized the need of Bangladesh’s consumer demand for world class sanitary ware in reasonable price. “We are going to start with production capacity of 1.5 Million pieces/ year’, it will also lessen the importing of sanitary ware in Bangladesh”, mentioned by Mr. Mohammed Shamsul Huda, Founder and Managing Director of Charu Ceramic. He also added that, 1500 employee will be engaged in this modern-tech sanitary ware factory- which is going to play a vital role in economic development of Bangladesh.
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News
CAMBODIA
Brick industry feels government pressure The Ministry of Labor has established a working group to investigate the use of child labor at some brick-making factories to the north of the capital, but has yet to find a case about debt bondage and child labor as mentioned in a recent report by rights group Licadho. On Friday – International Day for the Abolition of Slavery – Licadho published “Built on Slavery: Debt Bondage and Child Labor in Cambodia’s Brick Factories,” which presents evidence of the widespread use of contemporary forms of slavery in Cambodia’s brickmanufacturing industry. On the same day of the report, the Ministry of Labor released an announcement, establishing a working group to investigate the claims and expressed disappointment that Licadho had not immediately reported incidents of child labor to authorities. Ministry spokesman Heng Sour told local media that the assigned working group had investigated some brickmaking factories along national roads 6A and 1 near Phnom Penh, but had not discovered any of the cases
raised by Licadho. He said the ministry would wait for cooperation and detailed information from the rights organization if they decide to share their findings, adding that the ministry would absolutely prevent the use of child labor in the form of slavery in Cambodia. “The ministry will take action and severely punish the enterprises or industries that use the labor of children under 15 years old. For now, the ministry will widely investigate the cases and raise awareness to prevent it,” Mr. Sour said. Licadho’s monitoring manager Am Sam Ath said the report is based on a study of Cambodia’s main center of brick production in an area to the north of Phnom Penh, from where hundreds of trucks travel each day to supply the city’s booming construction sector. Eleven sites were identified, containing more than 100 factories and thousands of workers. The study involved interviews with about 50 workers, including adults and children. Mr. Sam Ath added that he was satisfied that the ministry is willing to cooperate with Licadho.
“We are happy that the ministry took immediate action after the report was released. In fact, the report confirmed the definitive locations of the [brick] manufacturing industry. We did not hide any information and we hope the relevant authorities will work on this for common interest,” he said. The report detailed how factory owners recruit workers by issuing loans and providing housing to poor and desperate families. The factory owners secure the loans against a promise from the workers that they will work in the factory until the loan is repaid. However, pay in the factories is so low that workers struggle to earn enough to subsist let alone pay back their debt and many end up taking even more loans from the factory owners. The initial need for the families to borrow commonly arises as a result of a crisis, such as sickness in the family or crop failure, and the starting loans are small, often only a few hundred dollars. However, the debts grow over time and workers interviewed were in debt for sums ranging from $1,000 to $6,000, amounts they will never be able to pay off.
When debt reaches these levels, it can pass from one generation of a family to the next and the study found some families with three generations all working to pay off a debt that was originally taken on by a member of the oldest generation. There are many children working in the brick factories and most parents in the area studied said that at least some of their children work. The report also covered the hazardous working conditions in brick factories and the appalling and unsanitary living conditions of factory housing. It found that as a consequence of their total dependence on the factory owners and their fear of reprisals, workers are unwilling to challenge their conditions or their treatment, and despite persistent breaches of criminal and civil law on the part of factory owners, authorities responsible for enforcing the law take no steps to do so. The report concluded that together, the practices of debt bondage and child labor are responsible for trapping multiple generations of families in a repeating cycle of poverty and servitude.
CHINA
Full-bodied tiles take demand hit Full body marble tile has definitely been the biggest hit in the domestic ceramic market during 2016, according to industry observers. As it is of full-body type, its silicate usage doubles what normal polished tile consumes. As a result, it has been closely watched by silicate and sands manufactures. Compared with conventional glazed marble tile, full body marble tile seems much more natural and vivid as its pattern and color are similar both in its body and glaze. Take ceramic cutting for example, the color on sides and the surface remain the same even after cutting by a
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45 degree. In terms of application, full body marble tile is expected to be the same as rustic tiles, mainly used in chamfer, facade and cylinder after being cut first as its advantages would be better displayed after being cut because of its full-body property. Therefore, its application would be much wider than other products. But probably only a small amount of consumers would choose this type of tile. Besides, as a new product, full body marble tile is pricier than conventional products, sometimes even several times of fully-polished glazed
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tiles. Consumers would naturally choose the latter one. In addition, due to limited promotion channels, it needs time for consumers to appreciate its advantages. For now jet ink marble tiles demand remained flat. Tile distributors said it might not have so many patterns and colour options as marble tiles has and manufacturers will not make all full body marble products. Instead, they would just focus on several products that can be laid on the walls. At present, jet ink marble products are much less than polished tile and fully-polished
glazed tile and its demand for silicate is less than expected. Generally speaking, full body marble tile is a toddler in the market due to its complicated manufacturing process, high costs, low recognition in demand market, but it has a promising outlook in the future.
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News
BANGLADESH
Duty change could boost ceramics Bangladesh has sought duty-free market access for its products to Malaysian market to boost trade ties between the two countries further which is on an uptrend. "We expected that Malaysia, like other countries, would also award us duty-free market access. But it is yet to happen. I would like to request the Malaysian government to award duty-free market access for our products," said Commerce Minister Tofail Ahmed. He made the request while addressing the inaugural session of the Bangladesh Trade and Investment Summit 2016 in Kuala Lumpur in November. The trade balance between Bangladesh and Malaysia is always in favour of Malaysia. In 2014-2015, export from Bangladesh to Malaysia was US$ 140 million while import from Malaysia to Bangladesh was US$ 1.2 billion. In 2015-2016, export from Bangladesh to Malaysia was US$ 190, which is an indication of a strong trade relation between the two countries. The Commerce Minister called upon the Malaysian investors to undertake new investment ventures in fast growing manufacturing, services and infrastructure sectors. Relocation of labour-intensive industries in the textile and accessories, furniture processing, agro-processing industries, electronics industries and other Small and Medium Industries from Malaysia might
be the most promising options, he said. While investment in the service sectors like tourism, healthcare and infrastructures like toll roads, bridges, power and gas generation would also be attractive to Malaysian investors, Tofail said. "Malaysia and Bangladesh stand as natural allies. Closer cooperation in investment and trade between the two countries would bring immense impact on the development of their economies," he added. Malaysian Deputy Minister for International Trade and Investment Haji Ahmad Bin Maslam, Bangladesh High Commissioner in Kuala Lumpur Md Shahidul Islam, BMCCI President Md Alamgir Jalil, chairman of the Summit organising committee Syed Nurul Islam and Managing Director and CEO of The City Bank Limited Sohail RK Hussain, among others, spoke on the occasion. The Commerce Minister said the present government has undertaken an initiative to designate 100 Economic Zones throughout the country, where as of now 22 zones are selected where 19 are in the public sector and 3 are in the private sector. "Malaysia can take the advantage of this opportunity and select an Economic Zone for Malaysian business," he added. The Commerce Minister said Bangladesh is encouraging foreign investment and investors
are welcomed to benefit from the incentives provided by Bangladesh. Tofail said Bangladesh is becoming a regional hub where activities relating to assembling, manufacturing, trading and services are gaining prominence. He said Bangladesh has been moving fast to undertake restructured reforms to create most friendly business environment under a market driven economy, with the major thrust coming from the private sector. "We strongly believe there are potential of more Bangladeshi products for Malaysian market. Bangladeshi Commodities like Ceramic tableware, pharmaceuticals, leather & leather goods, potatoes, spices, raw jute & jute sacking have better market prospect in Malaysia," Tofail said. The Commerce Minister said Bangladesh is one of the most open economies in South Asia with an extensively liberalised trade and investment regime. "We've been vigorously pursuing a private sector driven export-led growth strategy." The Board of Investment (BOI) and Bangladesh Export Processing Zones (BEPZA) are providing institutional support services to the prospective investors, he told the Malaysian investors. "Our government attaches top priority to attract foreign direct investment into Bangladesh with unrestricted equity participation
virtually in all sectors of the economy." Tofail Ahmed said infrastructure development is another area where Bangladesh requires a massive investment. "Other area is electricity generation. Bangladesh also wants to improvise its rail transportation, widen its national highways and modernize the better operation of its two seaports at Chittagong and Mongla to facilitate its cargo movements." On signing Free Trade Agreement, the Commerce Minister said they are now working on the matter. The Malaysian Deputy Minister said the proposed FTA would certainly add momentum to the current trade relations. "It'll be mutually beneficial for more access to each other's markets for goods and services, and investment and removing barriers to doing business." High Commissioner Shahidul Islam said Malaysia is Bangladesh's important partner and laid emphasis on working together. "Bangladesh is witnessing rapid transformation. In our journey, let us come together for our future. We need to grow and flourish, we need to create jobs and investment," he said. Syed Nurul Islam said Bangladesh is no more a cheap labour supplying country rather Bangladesh is a different country today. "I invite you all to visit Bangladesh and see what we offer for investors."
UAE
RAK Porcelain Debuts at Madison Square Leading porcelain tableware producer, RAK Porcelain has opened a 2,100-squarefoot showroom at Forty One Madison, the vertical merchandise mart that’s home to The New York tabletop market for more than 40 years. In making the move to the premier address for tabletop companies, the UAE-based company joins a growing roster of prestigious tableware
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producers servicing the hospitality industry. In less than a decade’s time, RAK has quickly distinguished itself with the production of quality high-alumina dinnerware designs that have become the choice of many leading global hotel groups and airlines. “One of the benefits of the new showroom is that customers can have full access to view collections yearlong without
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having to wait for the few days each year that industry trade shows and exhibitions take place. “It’s a convenience to be based in New York City and the center of commerce and at a crossroads where hospitality business is so vibrant. Chefs, restaurateurs, interior designers and others responsible for specifying front-of-the house furnishings encompassing dinnerware frequent Forty One
and appreciate that there’s a strong contingent of brands based here, “ according to RAL porcelain. A number of tableware ranging from Christofle, Hermès and L’OBJET to like Hall, Libbey and Yamazaki with dedicated commercial sales divisions. To have them all under one roof is an attractive proposition for specifiers and purchasing agents.
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News
BANGLADESH
Tableware sector restricted by “same old� problems Non-availability of gas supply for new entrepreneurs and influx of low-cost tableware in the market are holding back the growth of the country's ceramic sector despite having its immense potential in export market, sector insiders have said. Besides, suspension of GSP by the US and the stronger position of Bangladesh currency against Euro are also taking its toll on export earnings. As a result, new investment in the sector remains stagnant, they added. According to the Bangladesh Ceramic Wares Manufacturers' Association (BCWMA), 20 companies manufacture tableware in the country, while nearly half of them export their products. The ceramic tableware manufacturers have invested around Tk 24 billion till fiscal year (FY) 2015-16. The total number of ceramic manufacturing companies is 58, which have invested around Tk 7 billion. However, export earnings from the ceramic sector mostly depend on tableware. In last FY, export earnings from ceramic products stood at Tk 2.95 billion, 11 per cent lower than that of FY 2014-15 at Tk 3.33
billion. The export earnings in FY 2013-14 were Tk 3.69 billion, up by 22.94 per cent from the previous FY. Among all kinds of ceramic ware exports, the earnings from tableware in FY 2015-16 stood at Tk 2.76 billion, down by 10.44 per cent from that of FY 2014-15 when it was Tk 3.09 billion. Export earnings from tableware were the highest in the FY 201314 or Tk 3.54 billion in the last ten FYs. The tableware market in Bangladesh is led by Shinepukur Ceramics, Monno Ceramic and FARR Ceramics Limited, sources said. In 2014, Bangladesh stood 17th in the global tableware export market with only 0.97 per cent market share while China was at the top with 61 per cent market share. BCWMA Secretary Zahedi Hassan Chowdhury told the FE that the country is globally recognised for its skilled manpower, nice finishing, product longevity and competitive price. However, new investment is not being made in the sector in recent years. "At present, only 20 companies are manufacturing ceramic tableware though domestic production began around six
INDIA
Khurja feels pain of de-monetisation With thousands employed directly, the pottery and ceramics industry is the financial backbone of Khurja town and Bulandshahr district. Exports to some western countries have managed to put the small UP town on the world map. Twelve days after the Prime Minister announced that Rs 500 and Rs 1,000 notes would be demonetised, the pottery industry here has been hit hard. So bad is the situation, say officials, that production has fallen by around 50% and in the days of austerity, there are few buyers for the products. "The situation is very grim. There are around 13 large ceramic manufacturers in
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the town and all are working at nearly half their capacity. Factory owners are struggling to pay their workers in cash. Most factories have around 500-600 workers working in them. Even if they pay them by cheque, how will the workers encash them? There are only 17 bank branches catering to a population of five lakh and ATMs run out of cash after 2-3 hours every day. Production has fallen to 50% and it may take another two months for production to return to normal. This has been caused by a severe cash crunch in the market right now," an administrative officer said, on condition of anonymity.
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decades ago," he said. The ceramic products are usually categorised as tableware, sanitary ware and tiles. According to financial information portal MarketWatch, the overall estimated value of global ceramic market will reach $502.8 billion in 2020 from the last year's $296.2 billion. Bangladeshi tableware are usually exported to the US, the UK, Canada, European countries, Japan, New Zealand, the UAE, Saudi Arabia, Kuwait, Egypt, Libya, Turkey, Jordan, Iran, Qatar, Oman, Syria, Lebanon and Pakistan, Regarding slowdown of export earnings, Mr Zahedi Hassan said the sector has been facing troubles in the last two years. "The export earnings from the US market declined mainly due to suspension of Bangladesh from its generalised system of preference (GSP)," he said. While talking to the FE, BCWMA General Secretary Irfan Uddin Rifat said new companies cannot start business mainly for scarcity of natural gas. "New entrepreneurs cannot start business in the sector for lack of gas connection for the last couple of years," he said. Ceramic ware manufacturing plants require a huge volume
NEWS IN BRIEF Depreciation pressures on the Chinese currency are weighing on domestic zircon sands price and downstream manufacturing costs. as China mainly relies on imported zircon sands. Though western sands price quotation remained unchanged, its price was up RMB200-250 per ton due to the depreciation of RMB. If silicate users were in a weak position in products pricing, they would be under much more pressure with the continuous depreciation of RMB.
of gas, said Mr Irfan adding that electricity or coal cannot be an alternative to it. In addition to that, the market is getting flooded by imported ceramic tableware mostly from China which is creating a tough competition for the local companies. "If the government doesn't charge higher tax on tableware import favouring the local brands, it will be tough for the sector's growth," he said. He also said, "If the sector gets necessary support from the policymakers, Bangladeshi ceramic industry can earn a huge amount of foreign currency,". "Unlike other flourishing sector, ceramic doesn't get cash incentive facilities," he informed. The sector employs nearly 0.5 million people both directly and indirectly, contributing around Tk 15 billion to the government exchequer in a year.
NEWS IN BRIEF Since late October, reports are that ceramics manufactures in Linyi have been seeing their inventory rising, weighing on their costs and profits. As such, some glazed ceramic tiles manufactures switched to floor tiles production, mainly glazed porcelain tiles and marble tiles. Though costs of transportation and coals surged recently, ceramic tiles price remained unchanged, forcing manufactures to reduce production costs. But silicate usages in newlystarted streams was still quite limited. Impacted by inventory and profit, some industry participants said many manufactures in Linyi had suspended production since late November or early December and zircon silicate usage by then would be even less.
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LAOS
Village the latest to suffer from brick kiln pollution Pollution from a brick kiln operating near the Lao capital of Vientiane is bedeviling residents of the Nonsa-ath village as it is still belching toxic smoke into the area despite a government order to stop. “The factory is still running and dumping smoke all over our village,” one villager told RFA’s Lao Service. “People in the nearby areas will suffer when the wind blows the smoke to them. We cannot do anything, so we just get into our houses and shut the door.” Production at the kiln owned by the Vietnamese Tui Nen Ven Jeuang company was stopped by the government early last month, but the shutdown was brief, said the villager who spoke on condition of anonymity. Another villager told RFA that
several residents met with the company’s upper management in an effort to get them to mitigate the pollution, but they were turned away. “We want the upper management to come and see our situation and help solve the problem for us,” said that villager who also spoke on condition of anonymity. “Many villagers who live near the factory are severely suffering and we really need help,” the villager added. While pollution from brick kilns doesn’t command the attention of pollution from automobiles or steel plants, such furnaces are among the most egregious industrial environmental offenders in South Asia. Brick manufacturing is a double-edged sword for many
under-developed nations as demand for bricks is booming and it is a relatively easy manufacturing process to develop. While brick making can provide income for cash-strapped economies, it also comes with a high environmental price. According to recent environmental studies the concentration of particulate matter in the air is three times higher in areas where a kiln is operational than during the off-season when the kilns are shut down. Effluent from brick kilns causes respiratory problems and other adverse health effects leading to high mortality and morbidity as well as environmental costs like reduced soil fertility, poor visibility and drying ground
EGYPT
Tariffs to hit ceramic industry? Last month, the Egyptian government took the courageous steps of liberalising its currency and raising fuel prices. But just when you think it has begun to repair the economy, industry observers have commented that it seems set to adopt another misguided policy by jacking up import tariffs? Recent Egyptian governments have been undoing a lot of economic good that was done by the government of Ahmed Nazif, which slashed and streamlined tariffs soon after it came to power in June 2004 then reduced them again in 2007, 2008 and 2009. The only items on which it charged more than 40 per cent duty in 2009 were alcohol, tobacco and vehicles. This policy, along with the currency flotation of 2004, helped push growth up to more than 7 per cent a year. Over the past few years, all of this has been unravelling, with tariff increases in March 2013, January of this year and yet again last week. The increases in 2013 and in January had some sort of logic, if misguided. People were taking
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advantage of the overvalued pound to buy cheap imports, creating a dollar shortage. Rather than let the currency weaken, the government mistakenly believed it could ease the shortage by making imported goods more expensive. This logic fell apart when the government floated the pound last month. The official price of the pound fell by half almost overnight, and imports were suddenly twice as expensive, putting them out of reach of people’s budgets. Local products became far more attractive. This is why last week’s tariff increases are so confounding. They are counterproductive to the government’s efforts to stimulate growth and painful to consumers already trying to absorb austerity measures imposed over the past two months. In most of the cases, tariffs that were 30 per cent in 2007 were increased to 40 per cent in January and then to 60 per cent last week. More than 350 items were affected, the bulk of which would fall especially hard on people putting finishing touches
on newly purchased homes. Imagine a couple who bought or are planning to buy a semifinished flat and now must make it habitable, a typical scenario in Egypt’s real estate market. Not only has the pound’s flotation pushed up the price of imported goods by 100 per cent, tariffs have added yet another 60 per cent to the cost of anything imported. Among the goods affected are marble, granite, ceramic tiles, porcelain sinks, window glass, aluminium door and window frames and water taps. Virtually all of these as of last week will be subject to the new import duty. Since the 2011 uprising the government has said it could not devalue the pound because this would increase the price of imports and hurt the poor. Its thinking now seems to have taken a 180 degree turn. The government seems to be trying to protect local industry from foreign competition. This approach doesn’t work. The handful of local producers, shielded from foreign competition, will see this as an opportunity to raise prices on
water sources. While the effects of brick manufacturing pollution are well known, it’s unclear if the Nonsa-ath villagers will soon see any relief. An official with environment office in Xaythany district that covers Nonsa-ath said they knew nothing about the plant’s fate. “We do not know if there will be an order to permanently close the factory, and we cannot issue an order to close the factory,” said the official who also spoke on condition of anonymity. “Last time, as part of the committee, we went to the factory and told the owner to stop the operation and properly submit paperwork according to the environmental rules,” the officials said. their own goods. Egypt has been imposing tariff protections for well over half a century, only to see its industry crumble. The only possible benefit from tariffs might be that they are a fairly easy way to raise revenue for a government desperately trying to balance its budget deficit, now running at about 12.5 per cent of GDP. But if the finance ministry feels it is in such critical need of funds, a far better approach might be to issue the long-overdue executive regulations for its newly imposed value-added tax, further reduce Egypt’s enormous subsidies on energy and tighten up its tax collection. It is vexing that, rather than wasting time protecting a few local manufacturers at the expense of the rest of the economy, a country at the crossroads of the world is not developing its trade and services with an eye towards becoming a global entrepot. A major chunk of world trade passes through Egypt via the Suez Canal, while new highways connect the country to North Africa and Sudan. Should the political hurdles be overcome, Egypt might soon be connected to Asia via a bridge to Saudi Arabia.
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International News
BCC delivers lukewarm response to government United kingdom
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he British Ceramic Association (BCC) has delivered its response to the Chancellor of the Exchequer’s Autumn Statement. BCC technical & environmental manager Lee Brownsword commented: “The new National Productivity Investment Fund measures to increase housebuilding and greater focus on innovation are potentially positive for the ceramics industry. The detail over the coming months is all important”. “The announcement of a new National Productivity Investment Fund is most welcome. We have been calling on government to collaborate further with the industry to unleash our growth
potential, and depending on the details of this new fund, this may specifically benefit our sector. “Our members manufacture a breadth of products needed to meet the UK’s housebuilding requirements. The announcement that Government will be facilitating the construction of more affordable homes is therefore welcomed, but these must now be delivered. “We are, however, cautious about the Chancellor’s remarks on ‘accelerated construction’. The quality and longevity of housing, as we have come to expect with brick-built homes, must be maintained. The use of locally-manufactured construction products
would ensure that the full economic benefit of increased housebuilding is felt in the UK. “We are disappointed that the Chancellor has decided to retain the UK-only carbon price floor tax which our members pay in full. This measure will continue to limit investment in our sector and adversely impacts our international competitiveness. “With many issues to address on trade following the EU Referendum result, we welcome additional resources in Whitehall. Tarifffree access to the EU and trade policies that maintain a level playing field are critical for the UK ceramics industry and we look forward to engaging with
Italtile reports increased growth South Africa
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ile and sanitaryware manufacturer Italtile has reported that its sales for the five months to end-November had shown an improvement of 14.7 percent to R2.9 billion. Chief financial officer Brandon Wood said while the company had expected better sales during the period, it would take any figure that had shown positive growth. “We are generally happy about the results and the company’s performance, but to be honest we were hoping for a better performance. The country’s economy hasn’t been performing and the consumer continues to feel the pinch, so we will take the results under the circumstances,” Wood added. The group said that the results for the five months to November included total system-wide sales with the new stores included. The group said nine TopT stores were opened during
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the period, although their full contribution to revenue would only be reflected in the following six months. The group said on a likeon-like retail store basis, turnover grew 10 percent compared with the previous corresponding period, with average price inflation estimated at 7.9 percent. Wood added that the company was still waiting for the appeal it launched with the Competition Tribunal about their merger with Ceramic Industries. The owner of retail brands such as CTM and TopT wanted to acquire the remaining shares it does not own through its wholly-owned subsidiary, Italtile Ceramics. Italtile wanted to acquire up to an additional 73.5 percent stake in Ceramic Industries for a proposed R3.75 billion. However, the Competition Commission turned down the merger in July by saying it would create unfair
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competition in the industry. “The merged entity could foreclose retailers by raising prices, reducing supplies or refusing outright to supply,” the commission ruled. As a result the matter has been taken to the tribunal by Italtile. “Yes, we appealed the decision by the commission, and as we speak it is in front of the Competition Tribunal. We expect two things to happen from there: we can settle the matter with the tribunal or we can go for a full hearing in March,” Wood explained. Despite hitting a snag with the Ceramic Industries merger, the year has been good for Italtile. The company reported in August a 16 percent increase in trading profit to R1.05 billion for the year to end June. Other changes in the group will see outgoing chief executive Nick Booth stepping down and handing over the reins to Jan Potgieter. Booth will be leaving the company at the end of February.
new officials on these pressing matters. “The UK ceramics industry is incredibly diverse and innovative. Continuing research & development is key to its ongoing success, and we welcome the Chancellor’s focus on fostering the right environment for innovation in the UK.” The BCC is the trade association for the UK ceramic manufacturing industry, representing the common and collective interests of all sectors of the industry. Its member companies cover the full spectrum of ceramic products, including the supply of materials, and comprise over 90% of the industry’s manufacturing capacity.
NEWS IN BRIEF Dura-tiles BG, part of Turkish Akgun Seramik Group, is investing 9.96 million levs ($5.37 million/5.1 million euro) in a new factory for ceramic wall and floor tiles in Bulgaria, the economy ministry in Sofia has said. The investment in the town of Novi Pazar, in northeastern Bulgaria, will create 305 new jobs, the ministry said in a statement.
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Mario Rossi (Ceramica Catalano) receives “Aldo Villa” Award Italy
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ario Rossi, president of the Catalano Ceramica Group, is winner of the fifteenth edition of the Aldo Villa award. Founded in 1967, Catalano is now a leading producer of ceramic sanitaryware and has played a pivotal role in the resurgence of the Civita Castellana (Viterbo) district, today home to one of the world’s most modern, highly automated facilities for the production of such products – a true symbol of Made in Italy quality that is and exported to five continents. Established in 1988 in memory of Aldo Villa – Sacmi’s guiding light for nearly 20 years and first president of the Italian Ceramic Society – this prize is awarded every two years to individuals who, on account of their professionalism, enterprise, focus on innovation and far-sightedness, have made an outstanding contribution to the development of the ceramic industry in Italy and worldwide. Like Mario Rossi, who has led the Viterbo-based company through years of profound change in the industry and, via a
steady policy of innovation and forward-looking technological investment, has made it one of the most competitive businesses in the country. The official award ceremony was held on Friday, 28th October in Sassuolo at the headquarters of Confindustria Ceramica (11 am, Auditorium). Making up an illustrious jury were Vittorio Borelli, Chairman of Confindustria Ceramica, Claudia Casali, director of the International Museum of Ceramics in Faenza, Paolo Mongardi, president of Sacmi, Alessandro Ruggieri, rector of Tuscia University and Paolo Zannini, head of the Italian Ceramic Society, the Association founded in 1972 by Aldo Villa (who was also its first president) that promotes -
PM pushed over “post Brexit pottery deal” United Kingdom
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rime Minister Theresa May says she will ensure pottery manufacturers have 'the best possible access' to trade with Europe, post-Brexit. Mrs May welcomed the 'renaissance' in Stoke-on-Trent's ceramics industry in recent years and insisted her government would work to see this continue once the country is outside the European Union. But industry leaders have called on the Prime Minister to go further and promise continued tariff-free trade with the EU and action to tackle Chinese dumping. Mrs May was responding to a question posed by Stoke-on-Trent South MP Rob Flello during this afternoon's PMQs. Mr Flello said the pottery industry's resurgence was due in
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part to Britain's membership of the EU. Around 50 per cent of the industry's exports go to the EU. He called on Mrs May to reiterate her predecessor David Cameron's assurances that the Government would ensure Brexit would not harm ceramics firms. Mr Flello said: “The pottery industry is witnessing a modest renaissance in part through EU exports and EU action on Chinese ceramic dumping. “The previous Prime Minister said he would make sure that the ceramics industry's voice is heard and that we would get a good negotiation. What is this Prime Minister doing to ensure Stokeon-Trent's ceramic manufacturers maintain both tariff-free access to the EU and a level playing field in the face of protectionist dumping."
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together with industry executives and technologists, university lecturers, researchers, craftsmen and potters - Italian ceramic culture worldwide. After the opening speeches by Paolo Zannini, Paolo Mongardi and Vittorio Borelli, who illustrated the purpose and history of the Aldo Villa Award, two reports with a specific focus on the bathroom furniture sector were presented. The first, "Bathroom design in business culture", by architect Carlo Martino, explained Catalano’s product evolution in terms of quality, design and automation under the guidance of Mario Rossi; the second. by Catia Grossi from iGuzzini (a leading designer of indoor and outdoor lighting systems) dealt with the theme of "Light to enhance and create atmosphere". Her report explained the different lighting and atmosphere-enhancing solutions provided by new LED technology. At the end of the speeches, the 15th Aldo Villa Award – which consists of a medal engraved by sculptor Carlo Zauli - was officially handed over by President Zannini to Mario
Rossi, who took the opportunity to express his satisfaction and extend his thanks to the committee, with particular regard to the rewarding, long-standing cooperation with Sacmi. The Italian Ceramic Society has a clear policy: a look through the list of past winners shows the award has recognised figures who distinguished themselves on two levels: not only in ceramic production and the promotion of Made in Italy, but also, and above all, the diffusion of an industrial culture based on innovation, skills enhancement, human capital development and the farsightedness of actions and choices. Such as those made by Ceramica Catalano’s managers: with the facility in Fabrica di Roma (VT) - which stands on an area of 170,000 square meters, of which 75,000 are indoors, has a team of 250 employees and offers cuttingedge production technology – they can now produce 2000 pieces a day and boast a technological and cultural leadership acknowledged both in Italy and around the world.
Mrs May said: “I am very pleased to welcome the renaissance in the ceramics industry that he refers to. His constituency of course has a long-standing history and tradition in ceramics. “What are we doing? As we go through the negotiations for leaving the European Union we will be ensuring that this country has the best possible access to trade with and operate within that European market. That's what people want and that's what we will do." Dr Laura Cohen, chief executive of the British Ceramic Confederation, said she was disappointed with Mrs May's response, explaining that continued access to the European market was not the same as tarifffree trade. The BCC campaigned against Brexit prior to June's referendum after 71 per cent of its members said they were in favour of staying in the EU. Dr Cohen said: “We are grateful to Rob Flello MP for
raising this important issue with the Prime Minister. “Half of UK ceramic sector exports are sold in the European Union, currently with tariff and paperwork-free access. “The EU has introduced antidumping duties to ensure more of a level playing field for UK ceramics tiles and tableware manufacturers in the face of protectionist Chinese dumping. These companies employ 6,000 people between them plus extra in their UK supply chain. “We need UK Government to work with us urgently to develop a way forward that supports these UK manufacturing businesses after we leave the EU. It is disappointing that the Prime Minister did not offer that commitment in her reply to Rob Flello's question." The BCC has also written to Chancellor Philip Hammond, ahead of his first Autumn Statement next month, calling for 'free but fair' trade and anti-dumping measures.
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Wangkang factory will “boost employment” Ghana
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he ceramic factory at Eshiem nearing completion in the Western will reduce the high rate of unemployment situation in the country since the firm will create over one thousand and five hundred (1500) jobs for Ghanaians, Deputy Communications Minister, Felix Kwakye Ofosu has disclosed. When completed, the US$60 million factory dollar project will
produce floor tiles, toilet bowls and other ceramic products using local raw materials such as limestone, kaolin clay, feldspar and silica deposits identified in the Western and Central regions. The products will be for both the domestic and international markets. The factory is owned by a Chinese company, Wangkang Ghana, a member of the Wangkang Holding Group. “Investors continue to show
interest and confidence in the Ghanaian economy.Between 2013 and 2015,a total 69 companies were set up in the Ghana Free Zones enclave. These companies employ a total of 16,372 workers. The latest to join the fray is Wankan Ceramics,a Chinese firm that specializes in the manufacture of tiles.Below are pictures of a US$60 million factory they are building on a 60 acre land at Eshiem in the
Western Region.The factory has three production lines each needing 500 workers to man.A total of 1,500 direct jobs will be created once it is completed early next month. Thousands of indirect jobs will also be created through this investment.They will produce 40 million square feet of tiles every year both for the local and export market,” Felix posted on his Facebook Timeline.
Raw Material News ILUKA LOOKS TO KICK-START NEW DEPOSIT Sri Lanka // Zircon
Australia’s Iluka Resources has estimated that its Puttalam mineral sands deposit has 56 million tonnes of titanium-bearing heavy minerals, enough to support a mining operation with a life of over 20 years, its Country Manager in Sri Lanka, Robert M. Tyler has said. Iluka currently holds six mineral exploration licenses in the Puttalam district of the North Western Province and has held preliminary discussions with several ministries and agencies, including the Board of Investment, on plans to develop the deposit. “This engagement has been positive,” Tyler told local media. “However due to the early stage of the project, no formal agreements have yet been concluded.” Iluka has identified a mineral resource of approximately 700 million tonnes of mineralised sands. “This is estimated to contain heavy minerals at a grade of 8 per cent, which equates to 56 million tonnes,” Tyler said. “The principal heavy minerals of interest are the titanium bearing minerals, ilmenite and rutile, with a third potential product being zircon,” Tyler said. Production volumes have not yet been determined but scoping studies suggest the mineral resource will support a mining operation with a life in excess of 20 years, he said. Tyler said Iluka’s decision on whether to export the three mineral products or
further upgrade the ore into more refined products will be depend on the results of ongoing feasibility studies. Asked about the prospects for having a minerals separation plant and a pigment plant, Tyler said, “Iluka’s mineral sands operations have historically included both on-site processing and subsequent physical separation (i.e. value addition of the concentrate) in-country, to produce the final products of ilmenite, rutile and zircon.” Tyler said the size of Iluka’s investment in the project will also depend on the results of ongoing feasibility studies, which will consider factors such as production rates, mining methods and infrastructure requirements. “Similar mineral sands projects undertaken elsewhere have typically resulted in the investment of hundreds of millions of dollars,” he said. Asked about surface access rights and concessions such as tax breaks Iluka is seeking from the government, Tyler said Iluka is holding “early stage discussions with land owners regarding access rights and the government, to seek an investment agreement with terms and conditions appropriate for a project of this nature.” Tyler said Iluka is committed to operating in a sustainable manner . “As such, Iluka will bring industry leading practices to the Sri Lankan minerals sector.”
PRICE RISE ANNOUNCED BY HAINAN WENSHENG China // Zircon On 23 November Hainan Wensheng New Material Sci & Tech Co., Ltd. announced its sands price hike by RMB500 per ton, effective since 1 December, as a result of the declining value of the RMB and increased logistics costs. As the largest domestic zircon sands concentration company, Hainan Wensheng has an annual capacity of 100ktpa and its move has stirred others into action. As such, other suppliers are expected to continue – and increase
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– the limit of sand sales in the next 3-4 months, as well as use that opportunity to increase prices. The move by Wensheng is perhaps not that surprising as sand prices have been forced down and restricted by a flat and declining opacifier market. For example, in November, domestic 65 opacifier grade was around RMB6,2006,300 per ton, tax exclusive and RMB6600-6700, tax inclusive. Some small plants’ quotations were even lower.
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Europe puts up China barrier
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n approaching World Trade Organization deadline could result in higher prices on European goods made with parts and materials imported from China. On Dec. 11, the European Union could grant China so-called “market economy status,” thereby using Chinese data for calculating duties in anti-dumping cases. Or European lawmakers could draft new rules that do away with the differentiation between market and nonmarket economies that the EU has used in the past. The odds are against China getting the treasured title by the WTO issued deadline, said Edwin Vermulst, a partner at VVGB Advocaten, a Brussels-based law firm. “There is simply too much pressure from southern EU states and industrial sectors with a protectionist agenda to maintain or even increase the high level of duties,” Mr. Vermulst said. Based on a proposal made public in November, the European Commission is on a mission to change its anti-dumping and antisubsidy framework in favor of more stringent rules. This raises concerns for finance chiefs whose firms have outsourced part of their supply chain to China, according to Stephen Adams, a partner at Global Counsel LLP, a consultancy based in London. “When you have outsourced…to China, you see duties as a cost factor and not as protection,” he said. A new slate of European rules is likely to discourage Chinese companies from dumping products in the EU and punish those that benefit from Chinese government subsidies by imposing steeper duties on the goods they import. “What we have seen is that the instruments in our toolbox are not sufficient to deal with the huge overcapacities that result in dumped exports on the EU market,” said Daniel Rosario, a spokesman for the EU Commission. China attracted criticism earlier this year because of its efforts to sell its excess production of steel to countries abroad, including the EU. Dumping refers to the export of
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products by a country at prices that are substantially lower than they are domestically. Europe’s automotive industry could take a beating from higher import duties on Chinese parts and intermediary products, such as aluminum wheels. European car makers including Germany’s BMW AG as well as France’s Peugeot SA and Renault SA are paying duties of 22.3% on imported Chinese aluminum wheels. That specific duty is currently under review by the EU Commission.
OUR CUSTOMERS CANNOT AFFORD THE SALE PRICE IN COMBINATION WITH THE DUTY, “We are being hit by these punitive customs,” said a person familiar with the situation in the sector. “These are unnecessary additional costs. It’s money that we could invest elsewhere,” the person said. Other sectors may suffer too. Wacker Chemie AG , a German chemicals firm, exports polysilicon to China where it is used to make solar panels, which are exported back to Europe. Some German textile makers also worry about duties imposed on Chinese imports. For the production of industrial textiles, many firms rely on Chinese base material supplies. Even before there were discussions of a new anti-dumping framework, exporting to the EU had already lost some of its luster for Chinese manufacturers. When the European Commission, the region’s governing body, imposed duties of 18.4%, Jiangyin Xicheng Steel Co. Ltd. stopped exporting to EU countries. “Our customers cannot afford the sale price in combination with the duty,” wrote Minnie Lu,
sales manager of the closely held company near Shanghai, in an email. “The new EU framework is not fair.” Still, the proposal needs to pass various EU legislative bodies before it is enacted, so the Dec. 11 deadline will most likely be missed. It could be in place by the spring of 2017. To be sure, manufacturers that directly compete with cheap Chinese end-products said this is an opportune time to lobby for rules that would allow for higher duties on Chinese goods. “We are anxious to fight distortions in the market,” said Emmanuelle Butaud-Stubbs, director general of Union des Industries Textiles, the French textile association. ArcelorMittal , a Luxembourgbased European steel manufacturer, said it was too early to gauge the potential impact of the new framework. “It’s impossible to say at this stage exactly what it looks like, and what that could mean for us,” a spokesman said in an email. The ceramics industry, said it also suffers. There are duties of about 17% on tableware and 28% on ceramic tiles, which are deemed too low. “A duty of around 30% is more successful in fending off Chinese competition,” said Renaud Batier, director general at Cerame-Unie, the European Ceramic Industry Association. If the EU doesn't grant market economy status to China, European companies may face retaliatory measures, said Xu Bin, professor for finance at the China Europe International Business School in Shanghai. In a statement issued Nov. 10, a day after the EC proposal was announced, the Chinese trade ministry said the nation will retain “the right to take all necessary means, and resolutely safeguard their legitimate rights and interests.” European companies operating in China now fear retaliation. “A frictional relationship will be detrimental for all parties, so tough unilateral approaches should be avoided,” said Javier Gimeno, general delegate for Asia-Pacific at Compagnie de Saint-Gobain SA, a French industrial company.
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Cevisama from Spain and China Ceramics City (known Coverings from USA, as well as as CCC) is located in Foshan, the China home court of world Guangdong. It is the first largeCeramic & Bathroom industries! scale trade and information Time: Biannual, spring (April 18service platform of ceramic & 21), autumn (October 18-21) bathroom in China. Integrating Exhibits: Ceramic Wall &Floor trading, exhibition and Tiles, Sanitary ware, Baths, Taps business service, CCC gathers &Fittings, Mosaic, Ceramic Mamore than 200 famous brands chinery and Raw Material. at home and abroad inside Venues: China Ceramics City, with categories of ceramic tile, China Ceramics Industry Headsanitary ware, tap & fitting, Opening Ceremony of the 28th CeramBath in CCC quarters, Foshan International mosaic and other customized Conference & Exhibition Center products, which represents the highest level of the sector in China. Welcome to China Ceramics City! For more information about Up to 2016, CCC has received about 380,000 international China Ceramics City, please visit our website or just send email buyers and 2.7 million domestic buyers, and successfully held to us. China International Ceramic & Bathroom Fair for 28 sessions. See you at the 29th CeramBath on Apr.18-21, 2017! Plus, CCC is regarded as the top trade window of China ceramic Web: www.eccc.com.cn & bathroom industry and the first procurement destination for Email: export@eccc.com.cn global buyers all over the world. Add: No.2, Jiangwan 3rd Road, Chancheng District, Foshan City, Guangdong Province, China
China International Ceramic & Bathroom Fair, Foshan — The China Home Court of World Ceramics & Bathroom industries
Exclusively organized by Foshan China Ceramics Ctiy Group Co. Ltd. biannually, China International Ceramic &Bathroom Fair, Foshan (CeramBath) is regarded as the most large-scale and influential ceramic and bathroom exhibition in China, gathering 750 leading brands of ceramic tiles and bathroom products. It has been seen as the market vane of the section in China. Since 2002, CeramBath has been successfully held for 28 sessions. After 15 years of development, it has become the world’s forth Ceramic & Bathroom exhibition following Cersaie from Italy,
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Global Sourcing Festival during the 28th CeramBath
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Analysis: Tableware
The Lampan From Chicken bowl to ASEAN hub
With all the evidence pointing to a significant upturn in the fortunes of the Thai ceramic industry, Jahir Ahmed looks at one of the country’s most important employers and exporters – the Lampang cluster – and discusses how tableware and giftware evolution is making a big difference
A
rooster in any ceramic tablewares is an unique symbol of Lampang, so is its name among the ceramic loving collectors throughout the world. Visitors to Thailand’s ceramic capital, Lampang, located in the heart of northern region can see the image of roosters on almost every important places. The rooster is there, on several ceramic tablewares, mostly on the body of bowls, which is famous as ‘chicken bowl’ symbolizing Lampang, as well as ceramic producing Thailand. The chicken bowl famed Lampang is synonymous with Thai ceramics since emergence of ceramic manufacturing in Thailand in a major form of industrial development in last half a century. For its local rawmaterial resources and continuously flourishing ceramic manufacturing activities Lampang is better known as ceramic hub of Thailand, despite the fact that in terms of value of finished ceramic products its contribution is far behind that of production and trade of the rest of the country, said
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Kobchai Sungsitthisawad, a top official of the Department of Industrial Promotion of Thailand. Ceramic products of Thailand’s central region in and around Bangkok, where all major manufacturers operate, play the leading role in the country, yet, the country’s northern province of Lampang and its ceramic industry cluster in and around the provincial capital city of Lampang is a major factor because of its command in the Thai ceramic industry being the largest supplier of raw materials and a significant caterer of the demand of domestic and world markets. The huge ceramic cluster and the related industrial and trading activities not only have made Lampang a famous ceramic hub of Southeast Asia, it is now poised to become the major ceramic centre of the Asean economic community that has just started taking a shape of regional free market. The government of Thailand is wooing Lampang for its potential in the ASEAN bloc and in checking the ever increasing dominance of the close and industrially influential neighbor China. Lampang’s largest product category tablewares are losing
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Analysis: Tableware
ng Factor Indra Ceramic dinnerwares. Photocredit Indra
domestic market share to China and needs urgent support, according to the Ceramic Industry Club of Thailand (CICT). Thailand has no international land border with China, but the fragile borders of its two closest neighbors Myanmar and Laos are always a matter of concern for the advantages of official and non-official trades in China’s favour. With rising cost of production in Thai ceramic sector and switching of profession by many of the the trained ceramic workers to other higher paid jobs Lampang is faced with challenges. It requires a long waited support from the government to promote its potential with expansion of investment for modernizing the total manufacturing and mining cluster in Lampang, This will help improve competitiveness in the world market, said the industry sources.
Supply advantages
Lampang province has a diverse range of precious and plentiful supplies of natural resources that meet the demand of the country’s manufacturing sectors including ceramics and contribute greatly in providing revenues to the country. It has the best quality white clay, which is used by many ceramic factories to produce the highest quality ceramic products. Lampang’s specialty for adopting and replicating or reintroducing Chinese blue ceramics and the traditional Benjarong porcelain and Celadon stoneware are well established among the collectors worldwide. Lampang has many of its own versions to offer. lts Oriental ceramics is recognized world over for artistic quality and standard. It has developed blue and white pottery to a very high level of aesthetic beauty for which Lampang is now known as center for the production
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of blue and white ceramicwares both in porcelain and stoneware. When it comes to handmade or hand painted traditional ceramics of any media, stone, earthenware, porcelain or bone china in Thailand, Lampang’s artisans are unparalleled in ceramic manufacturing. They have a wide range of finely decorated and hand-painted porcelain and stoneware products. In their hand the Oriental art is combined with high technology, resulting in unique work. Technologically, each product is elaborately created by a local artist and fired at appropriate temperatures to achieve the highest level of quality, even by applying traditional equipment and wood-fuelled kilns. The later versions of wood-fired dragon kilns and modern LPG kilns have further taken it to an unimaginable comnpetitiveness. Charming unique designs and patterns are offered and also customised designs made to order, according to Kobchai Sungsitthisawad.
An ASEAN hub
For the last 25 years, Lampang attracted the government to run a support service with the Ceramic Industries Development Center, under the Department of Industrial Promotion of the Ministry of Industry. The Center provides various facilities for the development, promotion, training, laboratory testing, research and others, making Lampang the hub of ceramics for the whole ASEAN region. The government is preparing the Lampang cluster to attract investment from the leading Thai and foreign ceramic manufacturers for setting up major production units to take the advantage of Asean free market. Thailand is rich in raw materials for making pottery and other ceramic products. Various ceramics, including pottery, of high
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Analysis: Tableware
Lampang Ceramic items. Photocourtesy - Lampang Ceramic
Baansuan Ceramic Industrial Co Ltd Location: Amphoe Muang, Lampang, 52100 Thailand Products: Vases, wind chimes, tablewares, shampoo bottles, tiles, etc.
Imperial Pottery Co Ltd Location: Hangchat, Lampang 52190, Thailand Products: Porcelain tablewares, gift products and decorative items
Quality Ceramic Co Ltd Location: Pongyangkok, Hangchat Lampang, 52000,Thailand Products: Ceramic wares, including coffee cups.
Indra Ceramic Company Limited quality are produced in several areas in the country, but Lampang has become the largest ceramic producing area, on more than one count, for better availability of china clay and other raw materials and dedicated work force in and around Lampang city, the centre of the industry. According to Kobchai Sungsitthisawad, there are currently more than 700 ceramic SMEs, in addition to several dozen large and organized ceramic factories, in Thailand’s main ceramic producing provinces of Lampang, Ratchaburi, Saraburi, Chiang Mai, Samut Sakhon, and Sukhothai, and of them, more than 70 percent are in Lampang and the adjacent regions, including over 200 factories in Lampang city and its neighbourhood, with about 9,000 trained workers. The Department of Industrial Promotion has an ambitious plan to develop its Ceramic Development Center in Lampang as the center for full-scale ceramic development in the ASEAN Economic Community. The center provides counseling services for the manufacturers concerning the production process, quality control, innovation and researches and development including fully equipped laboratory for testing and analysis. In last three decades, the Lampang ceramic industry was able to provide more variety in model and texture of stoneware, earthenware, porcelain, bone china and production techniques. The industry has become highly competitive in the global markets. The Department of Industrial Promotion is giving special importance to the ASEAN member countries, which are the major buyers of ceramics from Thailand. The Department is promoting business matching for investment in this industry between Thai manufacturers and their counterparts in Cambodia, Indonesia, Laos, Malaysia and Myanmar. These countries buy large volume of Thai ceramic products,
Location: Prabaht Muang Lampang, 52000, Thailand Products: Ceramic tableware, decorative and gift items
Dhanabadee Art Ceramic Co Ltd Location: Prabath, Muang Lampang, 52000, Thailand Products: Ceramic decoration and gift wares.
Kasalong Ceramics Co Ltd Location: Muang Lampang, 52000, Thailand Products: Ceramic casual wares
Sang Arun Ceramic Co Ltd Location: Chompoo, Muang Lampang, 52100, Thailand Products: Ceramic products.
Baan Celadon Ltd Location: Sankampaeng Chiangmai, 50130, Thailand Products: Celadon pottery
C.M. Ceramics Chiangmai Co Ltd Location: Paton, Muang Chiang, 50300, Thailand Products: Animals ceramics
Chiangmai Porcelain Co Ltd Location: Hangdong Chiangmai, 50230, Thailand Products: Ceramic toys, gift dolls, etc.
Chour Lampang Earthenware Co Ltd (Kasalong) Location: Muang Lampang, 52000, Thailand Products: Ceramic tablewares and other earthenwares.
THAI CERAMIC INDUSTRY 2013-2016 Actual Production Product Group
2013 Jan-Sep 2014 Jan-Dec
Domestic Market
2015
2016
2013
2014
2015
2016
Unit
Ceramic Tiles
202
191
191
180
192
180
180
162
M.sqm.
Sanitary Ware
5.93
8.96
9.1
9.1
3.64
4.7
5.4
5.0
M.Pcs
Tableware
260
260
232
235
105
105
94
96
M.Pcs
Insulators
8,000
8,000
8,000
7,400
6,000
6,000
6,000
6,100
Tons
Refractors
156,000
148,000
126,000
125,000
118,000
115,000
92,000
93,000
Tons
Source: Ceramic Industry Club of Thailand (CICT)
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Analysis: Tableware
LAMPANG HAS ITS OWN FACILITIES TO PROMOTE TRADE OF THE LOCAL CERAMIC MANUFACTURERS
especially tablewares, giftwares, sanitarywares and floor and wall tiles. The Lampang manufacturers have upgraded within their resource base and added basic modern technologies to reduce cost of production and increase productivity, getting introduced to new types of kilns suitable for their use and got enough idea about operating shuttle kiln, tunnel kiln, and fiber insulator kiln. The factories in Lampang city now range from small to large scale. There are about 30 factories for medium to large scale with number of workers ranging from 100-600 in a factory. There are about 120 factories of SME types with work force ranging from 10-80 in each factory. This generates a cash flow of some US$100 million into the Lampang province per year. Many of the pottery factories have already switched to large operators and have added porcelain and bone china works to the original stoneware manufacturing with expertise. Most of the stoneware manufacturers have some form of activities similar to porcelain as their firing systems have improved to bake the products in the kilns of high temperatures with capability to produce porcelain, Lampang’s advantages are numerous over other ceramic clusters in Thailand. The rate of payment for labor force in Lampang is cheaper than those of larger cities. Lampang is situated in a good location. It is the center of Thailand’s northern commujnications and it is the gateway to the northern parts of the country, with bypass to many nearby provinces and has all forms of transportations. Ceramics in Lampang was originated when a villager from the JaeHom district found a whetstone which was made from Kaolinite (white clay). In1947, discovery of the mines were confirmed and established at Pang-Ka village, Amphur Jae-Hom, Lampang, between the 26th and 27th Kilometer of Lampang-Jachom Road. Soon manufacturing in small scale started and Lampang ceramics became better known for its blue and white products in international markets. Conservative style, using the jigger method of production and dragon kilns, which still use wood as an energy source, formed the basis of operation by an increasing number of manufacturers. They initially produced household items and gradually produced attractive giftwares, tablewares, beautiful bowls, electric insulators, art ceramics, and tiles, of which a little over half a dozen factories remain in operation till today. Now LPG kiln fired products compete with goods in the world markets. Such kilns are used to produce gift sets, home decoration items, dinnerwares, specialty tea sets, jewelries, ceramic fences, art items and various other handmade products.
Chovo Handicraft Ltd Location: Hangdong Lampang 52190, Thailand Products: Ceramics items, hand painted on tiles.
Chuanlhong Ceramic Ltd Location: T. Limping, Muang Lamphun, 51000, Thailand Products: Ceramic flower vase, pot, plate, etc.
Chiangmai Pottery Co Ltd Location: Banvaen, Hangdong Chiangmai, 50230, Thailand Products: Terracotta ceramics and ceramic potteries.
Chiangmai Colden Export Ltd Location: Banvan, Hangdong Chiangmai, 50230, Thailand Products: Ceramicwares
Dhaka Handicraft Ltd Location: Muang Lampang, 52000, Thailand Products: Ceramic miniatures and other hand-crafts.
Doiy Din Dang Pottery (Pottery House) Location: Chiangrai 57000, Thailand Products: Ceramic contemporary art.
Home Pottery Co Limited Location: Sobtui, Muang, Lampang 52100, Thailand Products: Porcelain tablewares.
THAI EXPORT MARKET VIEW 2012-2015 Total export of ceramic products in 2012 US$775 Mn, 2013 US$774 Mn, 2014 US$836 Mn, 2015 US$826 Mn. (Increased by 10.94% in 2012 from 2011)
G/R from 2011
Product Group
2012
2103
2014
2015
2012
2103
2014
2015
Tableware
173
115
200
203
1%
1%
14%
5%
Sanitary Ware
139
173
175
175
4%
24%
1%
0.%
Ceramic Tiles
119
119
113
109
3%
-
-5%
3%
Insulators
83
24
29
29
139%
-71%
22%
-1%
Refractors
42
41
69
69
-
-2%
69%
1%
Source: Ceramic Industry Club of Thailand (CICT)
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Analysis: Tableware
Capacity expansions
Home Ceramic Handicraft Location: Chompoo, Muang Lampang 52000, Thailand Products: Ceramic handicrafts.
With arrival of high technology products, using the tunnel kiln, Lampang was able to expand production capacity to serve the market demand of Europe, North America and Asia Pacific. Most demanding items at the moment are handmade/hand painted porcelain/china items and high quality stonewares, and they include uniquely designed tablewares, large flower pots and vases, and highly attractive gift items. Currently the typical smaller operators like KK Ceramics makes a wide selection of handcrafted decorative items and giftwares, including clocks, statues, pots and vases, personalized corporate gifts and other custom products. KK Ceramics’ top grade items are hand-made from the best materials available in the market. Their combined products include those of porcelain, none china and stonewares. While the better known porcelain and vitreous china manufacturer, Quality Ceramics Co manufactures ‘Supreme Fine Ceramic,’ an exclusive kind of ‘porcelain/fine china’ products with offers of six collections both in plain and embossed pattern with complete range of tabletop items to serve the customers' specific expectation. Its ORIENTAL PLUS warm white body collection is inspired by the ‘superb Eastern dining culinary appearance.’ “The products are designed and made with the mind of multipurpose functionality, including high quality and light weight body providing admirable durability for global markets, specially, upper-end hotels and restaurants,” said the company’s sales official Thongpugdee. Quality Ceramics’ sister unit, Imperial Pottery Co, manufactures high quality porcelain tablewares for hotels and restaurants, in addition to domestic uses, and meeting the global demand. Its brands include, Leela and Baralee. It has some popular designs and shapes for full range of functional tableware items, with a production capacity of 12 million pieces per year. The famous Lampang ‘Chicken Bowl’ manufacturer Dhanabadee Art Ceramic Co said they have their buyers who know about their products. The company has various porcelain products for collection, gift and general uses with associate operators under Dhanabadee Ceramic Group that employ some 300 skilled workers, including a dozen of designers and other experts for R&D. The Chicken Bowl is favourite in the homes of Thailand and other countries, both in Asia and the Western continents. Dhanabadee Art Ceramic produced porcelain vases are made with elegance and style. The oval design exudes a touch of modern serenity, making the vases good decorations for home. Solely made by hands the products are in various designs. Dhanabadee
Keram Thai Co Ltd Location: Chompoo, Muang Lampang, 52000, Thailand Products: Porcelain dolls, stonewares, etc
K.K. Ceramic Co Ltd Location: Chompoo, Muang Lampang, 52000, Thailand Products: Ceramic gift items, including flower vase and saving box.
Kittiroj Ceramic Factory Location: Tontongchai, Muang Lampang, 52000, Thailand Products: Ceramic wares, including souvenirs.
Kum Saen Kong Ltd Location: Lampang, Thailand Products: Fine china tablewares, gift items and decorative products
Khelang Benjarong Factory Location: A. Muang, Lampang 52100, Thailand Products: Benjarong porcelain tablewares, tea sets, money banks and gift items
Keramos Studio Ltd Location: Suthep, Muang Chiangmai, 50200, Thailand Products: Ceramic dinnerwares, small bells, mugs, and cups.
Lampang Koon Ceramic Co Ltd Location: Phabath, Muang Lampang, 52000, Thailand Products: Ceramic vase, small jar and souvenir items.
Lampang Silaphanakorn Co Ltd Location: Chompoo, Muang Lampang, 52100, Thailand Products: Benjarong ceramics and tablewares
Menglrai Kilns R.O.P. Location: Phrasing, Muang Chiangmai, 50200, Thailand Products: Celadon ceramics and various stoneware Products.
Meelarp Ceramic Ltd Location: Pongsangthong, Muang Lampang, 52000, Thailand Products: Ceramic products.
THAI IMPORT MARKET VIEW 2012-2015 Total import of ceramic products in 2012 US$716 Mn, 2013 US$858 Mn, 2014 US$769 Mn, 2015 US$758 Mn. (Increased by 10.81% in 2012 from 2011) Import Value (M.US$) Product Group
G/R from 2011
2012
2103
2014
2015
2012
2103
2014
2015
Tableware
9
9
13
15
-15%
4%
33%
22%
Sanitary Ware
29
30
34
36
30%
2%
13%
5%
Ceramic Tiles
266
327
280
80
31%
22%
-13%
0%
Insulators
12
25
21
15
-18%
99%
-14%
-30%
Refractors
103
94
87
71
38%
-9%
-7%
-18%
Source: Ceramic Industry Club of Thailand (CICT)
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Analysis: Tableware
Sang Arun ceramic items. Photocredit Sang Arun
Art Ceramic is reputed for high quality and superior design of products, which are exported to 92 countries around the world. The manufacturer claims it ensures the quality of the goods and enrich customers' lifestyles. It was awarded for excellence by foreign and local organizations, including the Thai Prime Minister’s Export Award. Some of the manufacturers are developing innovative products with very high success rates. Sang Arun Ceramic Co produces porcelain enameled and glazed wares for household and catering uses, hand painted potteries, vitreous china, soft porcelain chinawares, half porcelain bone china wares, porcelain decorative wares, etc. Kasalong Ceramics Co is a major stoneware gift item manufacturer. It has been diversifying its product base continuously. In addition to stonewares, its chinawares for household and catering uses include half porcelain bone china, soft porcelain china, glazed pottery, and enameled porcelain. Its production capacity is two million pieces per month. Indra Ceramic also has diversified products and end-users, targeting mostly the global markets. Indra said 75 percent output of its production capacity of 6 million pieces a year is catering export markets. Indra Ceramic is a major stoneware manufacturer with product lines of dinnerwares, mugs, gift and decorative items, etc, and producing quality porcelain mugs too. Being capable to manufacture porcelain tablewares, Indra aspires to have a quality porcelain tableware lines. With knowledge and long experience in the ceramic tile industry, Keratiles Ceramic Co has combined the beautiful art work with advanced manufacturing technology to be used in the production of Celadon tiles. The product is an innovative double fired glass glazed tile. The produced tiles are characterized by high quality, but still remaining the beautiful handmade original style (of earthenware), said the company. Keratiles becomes the leading Thai manufacturer who can produce Celadon tiles in the new style to be fired at high temperatures resulting with consistent quality, high strength, accurate size, low distortion, low water absorption, glossy and bright color and natural looks, suitable for use at home, garden and spa.
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Na Nawa International Ltd Location: Yangnerng, Sarapee Chiangmai, 50140, Thailand Products: Ceramic products.
Pichai Factory Ltd Location: Pongsaengthong, Muang Lampang, 52000, Thailand Products: Ceramic products.
Pun-Ngam Ceramic Co Ltd Location: Pha Ham, Muang Chiangmai, 50000, Thailand Products: Ceramic products.
Pan And Peace Enterprise Co Ltd Location: Chiangmai, 50130, Thailand Products: Ceramic Benjarong products.
Prempracha's Collection Co Ltd Location: Sankampaeng Chiangmai, 50130, Thailand Products: Ceramic wares, including gift Items.
Rama Ceramic Ltd Location: Pongsangtong, Muang Lampang, 52000, Thailand Products: Ceramic products.
Saengchai Ceramics Co Ltd Location: Muang Lampang, 52000, Thailand Products: Ceramic products. Markets: Domestic and export markets.
S P Ceramic Collection Ltd Locatiion: Chompoo, Amphoe Muang Lampang, Lampang, Thailand Products: Ceramic giftwares, moneyboxes, piggybanks, home decors, etc.
S.P.P. Ceramic Co Ltd Location: Pongyangkok, Hangchut Lampang, 52190, Thailand Products: Ceramic miniature, gifts and decorative Items
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Analysis: Tableware
Chicken bowl and chicken cup synbolise Lampang. Photocourtesy Lampang Ceramic
Suthep Karnthoranee Ltd Location: Tungphai, Muang Lampang, 52000, Thailand Products: Ceramic floor and wall tiles.
Sang Utai Ceramic Factory Location: Chompoo, Muang Lampang, 52100, Thailand Products: Ceramic products (blue and white)
Sankampaeng Kilns Location: Chiangmai-Sankampaeng, Chiangmai 50130, Thailand Products: Ceramic dinner sets, tea sets, ceramic Celadon products
Siam Celadon Co Ltd Location: Tonpa, Sankampaeng Chiangmai, 50130, Thailand Products: Ceramics, Celadon ceramicwares.
T.C. Commercial Co Ltd Location: Muang Lampang, 52000, Thailand Products: Ceramicwares (blue and white)
T.K.K. Ceramic Co Ltd Location: Pongsangtong, Muang Lampang, 52000, Thailand Products: Ceramic decorative gift items, lamps.
Innovative manufacturer Baansuan Ceramic Industrial Co, with huge export potentiality, offers a diverse range of ceramic wares, including vases, wind chimes, oil burners, incense holders, stools, fountains, flower pots, planters, lamps, candle holders, coffee sets, tea sets, basins, bathroom sets, soap dishes, condiment sets, shampoo bottles, home and garden small tiles, and others. Baansuan Ceramic is already well known worldwide for its innovative product types, designs, quality and functionality. Rama Ceramics’ new sister unit tile manufacturer Wiang Kaew Ceramics Tiles Co, with a small production capacity of 10,000 sq metres per month, has a capability of producing more than 60 colour glazes and competing in the world market.
Influencing factors
asian ceramics
Location: Yangnerng, Sarapee, Chiangmai, 50140, Thailand Products: Ceramic wares.
Thai Porcelain Co Ltd Location: Wangprao, Kohkar Lampang, 52130, Thailand Products: Porcelain wares.
Thai Celadon Co Ltd Location: Muang Chiangmai, 50000, Thailand Products: Celadon ceramics and stonwares
Thai Ceramic Lampang Co Ltd
The ceramic sector of Lampang is considered as one of the most important industrial sectors. The majority of the small and mediumsized factories concentrate on catering domestic demands, in addition to exports worldwide. This helps substitute imports greatly while contributes to exports. Industry sources observe that a large quantity of Lampang ceramics are meeting the domestic demands of kitchen and household applications and building materials including ceramic tiles similar to Thailand’s organized ceramic sector. Lampang’s local raw material base is significantly more important. The province is very rich in kaolin and ball clay and meet a large part of the domestic demands. It is the main source of white clay in Thailand, with some 93 percent of all such clay coming from Lampang. Many of Thailand’s mining industries have orientated themselves towards producing kaolin and ball clay, both of which are numerous in the areas of Chae Hom district of Lampang province. The average monthly production capacity of kaolin in Lampang is estimated at 40,000 tonnes, while the total volume of ball clay produced on a monthly basis in the area is approximately up to 50,000 tonnes. Ball clay is primarily distributed for domestic sales and also exported to other countries. Sop Prap district in southern Lampang is the main source of ball clay. Kaolin and ball clay mining in Lampang and the neighbouring
40
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Location: Banwangmor, Muang Tontongchai Lampang, 52000, Thailand Products: Ceramic products.
Thai Cera Co Ltd Location: Sala, Koh Kha Lampang, 52130, Thailand Products: Ceramic products
T.W. Ceramic Co Ltd Location: Chompoo, Muang Lampang, 52000, Thailand Products: Ceramic wares
Sankampaeng Kilns (Piankusol LP) Location: Sankampang Chiangmai, 50130, Thailand Products: Ceramic wares including Celadon items
Keratiles Ceramic Co Ltd Location: Amphur Maeta, Lampang Province 52150, Thailand Products: Construction ceramics and others.
Wiang Kaew Ceramics Tiles Co Ltd Location: Wiang-tal, Lampang, Hang Chat, 52000, Thailand Products: Ceramic tiles
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Analysis: Tableware
province of Uttaradit requires fresh investment for mine development and production. Current trend of higher consumption of clays in ceramic and other industries deserve further explorations in Thailand’s northern provinces. Thailand is rich in kaolin white clay and ball clay with deposits in many places. It has four more kaolin and ball clay producing provinces, Prachinburi in the central region, and Ranong, Surat Thani, Nakorn Si Thammarat and Narathiwat in the south. However, the existing production sources would be depleted in the next fifty years. The localized factories in Lampang, ranging from small to large scale in local standard, have their own different characteristics. About 30 factories of medium to large size with improved labour intensive technologies have 100-600 workers each. Some 120 factories of smaller size with 10-80 workers per factory operate with mixed production techniques, skills and specialisations. They all generate a reported cash flow, equivalent to over 10 percent of Thailand’s total ceramic industry output in terms of value, annually, into the province. Together with the factories of neighbouring province of Chiang Mai and others the total expanded cluster is an industry site of an annual output of about US$150 million a year, or 10-15 percent of the total ceramic sector, of worth over US dollars one billion. The direct and indirect employment in Lampang cluster is much more significant. The industry and its trade currently fluctuate badly owing to slower domestic demand, due to lower GDP growth, and lesser return at the domestic and export markets. The cluster grew faster with higher GDP growth of Thailand in the 1980s and 1990s when domestic consumers were demanding diverse qualities, textures, models and designs of porcelain, bone china, stonewares and earthenwares. With induction of modern production line machinery and firing technologies with kilns of different types, shuttle, tunnel and roller, the Lampang ceramic cluster updated total operation with cost effective production systems for which production of tablewares, giftwarers, vases and large flower pots were better, more economic and competitive, specially, in the largest export markets of Europe, USA-Canada and Japan. The products fired with LPG based kilns helped compete against foreign products in the domestic markets also. Dinnerwares, hotel and restaurant wares, gift products, home decoration items, ceramic fences, and other handmade products became more attractive. Less than a dozen factories still operate with traditional jigger method using wood-fired dragon kilns and they produce long traditional 5-7 inch local bowls, art products, electrical insulators, etc. But more organized factories under CICT are basically complete turn-key plants having more or less latest automations. Compared to over half a thousand Lampang plants, CICT currently has only 8 tableware, 7 sanitaryware, 13 tile, 2 insulator, 2 giftware and 1 refractory companies, totaling 33, as members. CICT’s other 25 members are supplies, rawmaterial and other companies. However, Lampang has its own facilities to promote trade of the local ceramic manufacturers. One of them is Lampang Ceramic Fair, which attracts huge number of visitors and buyers from many countries. Lampang Ceramic Association, in cooperation with Lampang provincial administration, organises the Fair, showcasing products from factories and selling them at low prices. This is an annual event, and being held every year since decades. The two-week long fair of 2016 was held in the first half of December. The Fair is considered a national fair that attracts both local and foreign visitors, and generates considerable income to the ceramic manufacturers and Lampang province.
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Arawan Ceramic Location: Lampang, Thailand Products: Construction ceramics and others.
C-thai cera Co Ltd Location: Lampang, Thailand Products: Construction ceramics and others.
IRIS Industrial Ltd Location: Lampang, Thailand Products: Construction ceramics and others.
Laemthong Ceramic Ltd Location: Lampang, Thailand Products: Construction ceramics and others.
Lampang-Thai Ceramic Tile Co Ltd Location: Lampang, Thailand Products: Construction ceramics and others.
Prasopsuk Ceramic Location: Lampang, Thailand Products: Construction ceramics and others.
Reanchai Ceramic Location: Lampang, Thailand Products: Construction ceramics and others.
Rungcharoen Ceramic Location: Lampang, Thailand Products: Construction ceramics and others.
SPP Tile Co Ltd Location: Lampang, Thailand Products: Construction ceramics and others.
Suprema Ceramics Co Ltd Location: Lampang, Thailand Products: Construction ceramics and others.
Tae-Chart Ceramic Location: Lampang, Thailand Products: Construction ceramics and others.
Vangkwang Ceramic Craft Location: Lampang, Thailand Products: Construction ceramics and others.
Yonok 2006 Co Ltd Location: Lampang, Thailand Products: Construction ceramics and others. Lampang Ceramic products. Photo courtesy Lampang Ceramic
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31 Aug - 2 Sep
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Analysis: Roof tiles
Keeping up appearances pressures mount on roof tile makers
AC looks at how the changing construction climate in Southern Asia is affecting the type and volume of roof tiles that are being ordered.
D
esigned and used mainly to keep the rains out, roof tiles are a common feature in cities and towns alike in many parts of Southern Asia. India’s Southern region, Bangladesh and Sri Lanka are largest users of the roof tiles in the South Asia region. In India, there is a widespread usage of roof tile in the Southern part of the country. Rooftops in the Southern states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh are dotted with red colored roof top tiles. However, new constructions in cities and towns in this part of the country are now using lesser quantities of roof tiles. Though, in rural areas, the usage of roof tiles is still prevalent and only a handful of new constructions have deviated from the trend. Earlier, there was a widespread use of roof tiles in states of Maharashtra , Madhya Pradesh and Gujarat in 1970’s and 1980’s but new construction technologies and practices have made the usage of roof tiles almost negligent in these states in last two decades. The roof tile industry in two other South Asian countries, Bangladesh and Sri Lanka is going through a transformation phase. While, a couple of decades back there was a widespread usage of roof tiles in the new constructions, the practice has slowed down considerable in last few years as multi-stories construction have begun to outnumber the single or double stories constructions, which were the major driver of roof tile consumption in these countries. However, the demand from existing customers in all the three major consuming countries has a noticeable effect on the quality of roof tiles. Increasingly, the customers are demanding and willing to spend on high quality of roof tiles to avoid the frequent
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maintenance. As a result, roof tile producers have invested in automation and state of the art technology to meet the demand from discerning consumers.
Production
Owning to the bigger size and large population, India is a clear winner in terms of volume of roof tile production. Bangladesh and Sri Lanka ranks far behind India in terms of roof tile production. Though, the four Southern states accounts for a lion’s share of roof tile production, a few new roof tile producers have come up in the states of Madhya Pradesh and North Eastern India to meet the demand of roof tiles in these states. Indian ceramic industry’s epicenter Gujarat has also seen the emergence of about two dozen roof tile producers in the ceramic clusters of Morbi, Thangadh and Himmatnagar in last few years. About a quarter of total production of these Gujarat based producers goes to Southern Indian market while rest is consumed in the rural areas of state of Maharashtra and Gujarat. Maximum production of roof tiles takes place in cottage industry in the states of Kerala, Karnataka and Tamil Nadu. Mangalore in Karnataka in particular is dotted with a number of roof tile producing factories. The number of these producers has come down by a significant degree. Around the turn of century around 75 tile factories were present in Mangalore. These Factories produced different building materials such as roof tiles, ridges, ceiling tiles, hourdies, bricks, floor tiles, terrace slabs, taylor tiles, ventilators, skylights, flower pots and water coolers. Feroke is known as the cradle of the clay tile industry in Kerala. The rivers from the Western Ghats after passing through forests carry the clay which was the raw-material for tiles, pottery and ceramic
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Analysis: Roof tiles
wares. The Commonwealth Tile Factory, The Calicut Tile Co. Feroke Tile works, Malabar Tile Works are amongst the major clay roofing companies in this area. In Bangladesh and Sri Lanka, most of the roof tile production takes place in the unorganized cottage sector with the use of age old production techniques. Companies producing 1000 square meters to 3000 square meters of roof tiles per day dominate the total production of roof tiles in both the countries. Very few medium scale roof tile producers have emerged in both the countries due to shrinking demand and price sensitivity of roof tiles.
Major concerns
Declining share of roof tile usage - particularly in newer constructions has given roof tile producers sleepless nights in last few years. New constructions in cities, multi story constructions in smaller towns and a large number of constructions in rural areas have stopped using roof tiles in an increasing manner, giving the roof tile industry a severe jolt in recent years. George Pai, owner of A. Albuquerque & Sons, a leading roof tile producer from Mangalore says, “ There has been a definitive slump in the roof tile consumption in India in recent years. Newer construction in cities and big towns doesn’t use these tiles at all. Only usage is left in smaller towns and villages.” His factory, which used to produce 25,000 tiles per day a few years back, but currently produces only 15,000 tiles per day. “ As purchasing power of majority of this section of population is quite low, the demand has further declined even in these segments. The lack of government patronage for tiles for roofing in low cost housing and emphasis on asbestos and other type of housings has resulted in this situation, ” He further says. Another stakeholder, Ramachandra Nayak, CEO of Sujirkar Tile says, “ Now a days a large part of total demand of Roof Tiles is met through reuse of old tiles from older buildings. Not very long back, there used to be 42 roof tile producing factories in the region but there are only 12 left now. Even, these existing factories
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Major Roof Tile Producers in India Company
City/ Town
State
Feroke Tile Works
Feroke
Kerala
Sirex Roofing Tiles
Cochin
Kerala
Shital Potteries
Morbi
Gujarat
Multi Location
Maharashtra and Madhya Pradesh
Bharat Tile Industries
Balaghat
Madhya Pradesh
White Feet Tile Industry
Chennai
Tamil Nadu
Thomson Tiles
Thrissur
Kerala
Kap India Tiles
Tirichur
Kerala
Calicut Tile Industries
Morbi
Gujarat
Lion Ceramics
Morbi
Gujarat
Raja Tiles Corporation
Bangalore
Karnataka
Coimbatore Tile Company
Coimbatore
Tamil Nadu
Calicut Tile Company
Calicut
Kerala
Commonwealth Tile Country
Feroke
Kerala
Kozhikode
Kerala
Endura
Malabar Tiles Company
AC 16-10
asian ceramics
45
Analysis: Roof tiles
are working at 60 % of their installed capacity.” His factory was established in 1918 and is one of the leading names in roofing tile industry in the country. According to Nayak, “ At its peak, when the area had 42 operating factories, the total output of rood tiles was about 75 million units per year. Now a days the output is barely 35 million roof tile units. We are finding it very difficult to market the roof tiles in the current situation.” Vikas Taneja, Project Manager of Vikas Techno Build, who builds low cost tiled houses in the Bangalore region says, “ There has been a major shift in the construction trend in the Southern region in past few years. People have started using slabs instead of roof tiles in a big way. People who build houses with sloping roofs use roofing tiles for insulation and to stop leakages. Also there is maintenance aspect of replacing the broken tiles, for which labour is getting scarce day by day.” Another developer, Ganesha Constructions told Asian Ceramics, “ It is true that usage of roof tiles is on decline, but a number of remodeling done by us still use new roof tiles.” Telling about a prestigious two stories building spread over two acres in Bangalore, which his company remodeled, “We used about 6000 square meters of roof tiles. Because the house initially had a traditional clay roof, the roof design could only support a lightweight roof. Roof tiles are comparatively lighter than other types roofing substitutes so we were able to re-roof without undertaking major roof strengthening.”.
India Company - Monier Roofing Private Limited Location - Bommasandra Industrial Area, Bangalore. Products - Roof Tiles Markets - Domestic and export markets Others - Subsidiary of Luxemburg based Braas Monier Building Group, Monier Roofing Private Limited is among leading suppliers of roofing tiles in Indian and neighboring South Asian markets. Its parent company is a leading producer and supplier of roof tiles in Europe , Africa and Asia. Many of the most recognized and trusted brands in the industry are part of Braas Monier’s portfolio, including Braas, Bramac, Redland, Wierer, Cobert and Coverland for roof tiles and roofing components. Company- Bangalore Tile Company Location- Banglaore Products- Roof Tiles, Mangalore Roof Tiles and Concrete Roof Tiles Markets- Domestic and export markets. Others- Composed of three units, Bangalore Tile Company, Affa Tile Company and Coimbotore Tile Company, Bangalore Tile Company is one of the largest producers and suppliers of roof tiles in India. Location at three strategic positions in three major cities of Southern India provides the company a unique advantage of presence in the highest roof tile consuming markets of South India. Company- Sirex Roofing Tile Location- Kochi Products- Roof Tiles Markets- Domestic and Export markets. Others- Engaged in manufacturing of roof tiles for past five decades, Sirex Roofing Tile is among the largest roof tile producers in India. The company operates seven factories, three in Thodupuzha (Kerala), two in Theni, one in Coimbatore and one in Tenkasi (Tamil Nadu).
Segment Winner- Mangalore Tiles
Among different categories of roof tiles prevalent in India, Mangalore Tiles are a clear winner in terms of popularity and usage volumes. Mangalore Tiles (also Mangalorean tiles) are a type of tile native to the city of Mangalore in the Southern state of Karnataka. The tiles were first introduced to India in 1860 by a German missionary. Since that time, the industry has flourished in India with these red tiles, prepared from hard laterite clay, in great demand throughout the Southern part of the country. Not confined to the domestic market, these tiles are exported to Sri Lanka, Myanmar, Far East and East Africa. These were the only tiles recommended for government buildings in India under the British Raj. These tiles still define a major part of Southern India. Though, their usage is on a decline due to multistory building culture in this part of the country. Asian Ceramics spoke to F.M. Lobo, CEO of Cascia Tile Factory, who has seen the industry from close quarters for a good part of his life. He says, “Even as the tiles over Victoria Terminus in Mumbai stand tall proclaiming the quality of Mangalore tiles for over a century now, the owners of surviving tile factories struggle to find skilled and cooperative workers and go the extra mile to get that quality clay. Skilled workers demand a bigger share of the pie and the owners are apprehensive that they would not be able to survive at this rate.”
Bangladesh Company- Khadim Ceramics Location- Sylhet, Bangladesh Products- Roofing Tiles Markets- Domestic and export markets Others- Sister concern of leading heavy clay producer, Mirpur Ceramics, Khadim Ceramics has emerged as a leading player of roof tiles in Bangladesh. In addition to roof tiles, the company also produces claddings, paving tiles and ready mix dry mortar. Mirpur Ceramics, the parent company produces structural clay products like bricks, blocks, pavers, and unglazed tiles etc. with an installed capacity to produce 30 million pieces of different products per annum.
Sri Lanka Company- Samson Rajarata Tiles Location- Anuradhapura Products- Roof Tiles Markets- Domestic and Export Markets Others- Samson Rajarata Tiles is among the leading roof tile producers in Sri Lanka. The company claims that its roof tiles are manufactured using Japanese technology at the state-ofthe-art manufacturing plant is located in the village Tirappane in Anuradhapura, Sri Lanka.
Glazed Roof Tile in India
Redland plc from UK started a glazed roofing tile plant at Feroke in the year 1996 in collaboration with The commonwealth Trust India Ltd at Feroke, Calicut. Later this company was taken over by Lafarge Roofing.. This paved the way for foreign companies to enter into the manufacturing of roof tiles in India.
Cement Roof Tiles in India
Production of Cement roof tiles in a small way was started in India
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Roof Tile Production in South Asia Country
2011
2012
2013
2014
2015
India
108
109
113
111
113
Bangladesh
37
38
38.5
38
39
Sri Lanka
9
9.5
9.80
10.2
10.8
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Analysis: Roof tiles
by the year 2000 by a few small scale players. But the high volume production of cement roof ties in India was started by Lafarge Roofing in the year 2003, when they commissioned its plant at Bommasandra Industrial area, Bangalore. Pioneer Roofing was the first Indian company that has ventured into the production of coloured cement roof tiles. The company started its commercial production in the year 2008 at Palakkad in the state of Kerala. Its second plant was commissioned in MIDC Halkarni, Kolhapur, Maharashtra in the year 2011.
Pioneer Roofing
Pionnier Roofing, commissioned in April 2008, is among the first Indian companies which commenced production of concrete roofing tiles in an organized manner. The company has its state of the art manufacturing units set up with Japanese technical assistance at Palakkad, Kerala and at Kolhapur, Maharashtra. Currently the company is working on setting up its third roof tile production plant at Kasaragod, Kerala with European technology.
Monier India
Reaching the milestone of selling 50 million tiles in Indian market in the current years, Monier claims to cater to the needs of an ever increasing and ever demanding roof market of India comprising of end customers, builders, architects and multiple villa projects. Monier India’s parent company, Brass Monier Building Group is a leading global manufacturer and supplier of pitched roof products, including both roof tiles and roofing components in Europe, Africa and parts of Asia. The company has been making pitched roof products for almost a century. The company is one of the few global producers to sell both a comprehensive range of concrete and clay tiles for pitched roofs and complimentary roofing components designed to cover various functional aspects of roof construction. The Group, with its head office in Luxembourg has operations in 37 countries with 118 production facilities. In 2015, the company generated revenue of Euro 1,256.7 million.
Wienerberger India
Leading global heavy clay producer Wienerberger offers its roof
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tile products in India through imports from its other production facilities. The company operates a brick production factory at Kunigal, 70 kms from Bangalore. This was Wienerberger’s first Asian manufacturing unit. This fully automated, state-of-the-art facility manufactures Porotherm Smart bricks. Spread across 30 acres, the manufacturing process began in 2009; being a first of a kind fully automated, environment friendly production unit for manufacturing of clay hollow bricks in India with the brand name Porotherm Smart Bricks. Wienerberger’s Koramic Clay Roof Solutions is a premium range of clay roof tiles, imported from Europe, have adorned the roofs of many projects across South India. According to Wienerberger, “ Since its inception in 1883, Koramic has been a guarantee of tradition and quality. Over 130 years of rich know-how and comprehensive production experience make Koramic one of the top clay roof tile brands of the world. Over 32 Koramic production lines in 6 countries provide an annual production capacity of over 450 million units sold worldwide.” Apart from the Koramic range of roof tiles, Wienerberger India also offers Macedonian and Mediterrane range of large format roof tiles in a variety of colours and finishes. The company says, “The Macedonian roof tile is designed to bring home the classic elegance of antique European architecture, combined with the innovative features of modern roofing. Designed to give the impression of the traditional byzantine roof tile, while incorporating all safety and ease in placement features of the modern large roof tiles. On the other hand, the Mediterranean roof tile celebrates an ever-evolving life style and dynamic aspirations of modern architects inspired by classical European design.”
KAP India
Founded in 1987 by one of the industry veterans, who was engaged with roof tile industry for more than four decades, KAP India is located at Thrissur in Kerala. The company went on to establish three more factories in the state of Kerala, Tamil Nadu and Karnataka. In addition to the Indian market, the company also exports roof tiles to the Middle East , South East Asia and Far East Asia.
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a brand to cover the future
BONGIOANNI
Leader in the construction of machinery for the heavy clay industry, with over 100 years of experience, Bongioanni supplies solutions projected into the future. Bongioanni Macchine and Bongioanni Stampi design machinery and production lines for claddings that provide the construction sector with materials characterised by high energy savings, high quality and refined aesthetics. Innovative solutions are tailored to suit every customer’s individual needs. Bongioanni covers all requirements, from raw material to the damp-moulded product, making it possible to obtain constant and high production capacity, respect of working safety standards and the supply of a complete aftersales service.
Bongioanni Macchine S.p.A. Macchine per Laterizio Via Macallè, 36/44 12045 Fossano (CN) - Italy Tel. +39 0172 650511 Fax +39 0172 650550 www.bongioannimacchine.com info@bongioannimacchine.com Certified company. REG. N° 815 UNI EN ISO 9001:2008
Stampi e Filiere Via Salmour, 1/A 12045 Fossano (CN) Italy Tel. +39 0172 693553 Fax +39 0172 692785 www.bongioannistampi.com info@bongioannistampi.com
Analysis: Roof tiles
Calicut Tile Company
Located at Feroke near Calicut, Calicut Tile Company is one of the first mechanised clay roof tile manufacturer in India. Operating since 1878, the company has a locational advantage of sourcing the clay from Feroke, the town known for its high quality clay for roof tile manufacturing. Company’s brand Queen enjoys huge popularity in the South India region.
Sirex
Kerala based roof tile producer Sirex has grown from a single factory to seven factories in the states of Kerala and Tamil Nadu. Staring with a meager capacity of 2,000 square feet to about 20,000 square feet of tiles per day, the company has emerges as one of the largest manufacturers of roof tiles in the country. The company offers a complete portfolio comprising of 12 different concrete coloured roof tiles, These are Heavy duty concrete roofing tiles with long lasting life and high durability. Sirex operates seven factories, namely, three in Thodupuzha (Kerala), two in Theni, one in Coimbatore and one in Tenkasi (Tamil Nadu). Second largest roof tile market in South Asia, Bangladesh has about 45 small and mid roof tile producers. About 90 % of these producers are very small and can be termed as cottage industry producers. Declining growth in small towns and village areas has led to lukewarm interest in roof tile production as most of the demand is coming from the ultra price sensitive segment, where quality is the last priority of customers. This has discouraged existing heavy clay producers to diversify in roof tile production in a big way. Technology adaptation has also suffered due to lukewarm response to higher quality roof clay tiles in major consuming areas.
Sri Lanka
By virtue of its climatic conditions and wide spread usage of roof tiles in a majority of rural and semi urban residential constructions, Sri Lank is an important and a sizable market for roof tile industry. Currently around 30 roof tile producers ( small and medium scale) are engaged in production of roof tiles for domestic industry. The country is in the process of setting quality standards for red clay roofing tiles while increasing productivity to reduce cost of production upon the ban of asbestos roofing by 2018. “We have developed standards to cover red clay roofing tiles industry. We presented the draft standards to the President of Sri Lanka and those standards will be open for public comments,” according to Mahendra Jayasekara, president of Lanka Ceramic Council. “We hope these standards will be implemented in the near future and red clay industry will be benefited by implementing those standards,” he further says. Sri Lanka plans to ban importing or manufacturing of asbestos roofing by 2018, as it generates health issues to the users. However, some stakeholders argue even though red clay roofing provides better health conditions the cost is much higher and will cost even more for replacing as its life cycle is comparably low to asbestos roofing. Sri Lankan government run, The Centre for Technical Excellence in Ceramics (CENTEC) jointly with the Sri Lanka Ceramics and Glass Council is working closely with the Sri Lanka Standards Institution (SLSI) to introduce the SLS mark to the roof tiles. CENTEC has singed up with over 20 roof tile manufacturing companies to implement Sri Lanka standards with regard to
asian ceramics
Leading roof tile companies in Bangladesh Company
City/ Town
Country
Sylhet
Bangladesh
Hatirpool
Bangladesh
Chittagong
Bangladesh
AVA Clay Tiles
Dhaka
Bangladesh
SR Clay Tiles
Satkhira
Bangladesh
KAI Roof Tile Company
Dhaka
Bangladesh
Anuradhapura
Sri Lanka
Sri jayawardenepura Kotte
Sri Lanka
Colombo
Sri Lanka
Sethsirini Tile Factory
Kochchikade
Sri Lanka
Sudarshi Roofing Tiles
Negombo Rd
Sri Lanka
Malabe
Sri Lanka
Khadim Ceramics
Bangladesh
50
THE DECLINING SHARE OF ROOF TILE USAGE, PARTICULARLY IN NEWER CONSTRUCTIONS HAS GIVEN ROOF TILE PRODUCERS SLEEPLESS NIGHTS IN LAST FEW YEARS
AC 16-10
Aziz Ceramics Mikita International
Samson Rajarata Tiles Clay Mas Tiles Ceylon Ceramics Corporation
Micro Roofing Tiles
system certifications in their factory. With the implementation of SL standards, the council is intending to improve the productivity, yields while bringing down the cost of production and making the local companies more competitive in the market place.
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Analysis: India
Yogender Malik looks at why Southern India is growing in importance as both a tile and sanitaryware product centre and major demand driver for the entire country’s industry.
C
omprising of states of Tamil Nadu, Kerala, Karnataka and Andhra Pradesh (bifurcated into states of Telengana and Andhra in 2014) makes up for 20 % of the total Indian population. These states contribute about 32% of India's tax revenues. The South also delivers a fourth of India’s GDP. It is not only an economic bellwether with low unemployment, a high rate of industrialization and a per capita GDP that is over double that of the Hindi ( North India) belt, it is also leaps ahead on human development and social indicators, which are some of the factors for the development of a healthy ceramic industry. On account of higher per capita incomes, robust construction sector and a vibrant service industry, the demand of ceramic tiles and sanitary ware in the region is also higher on per capita basis when compared to all India average. Whereas, all India per capita usage of ceramic tiles is about 0.63 square meters, the Southern region per capita stands at 0.81 square meters. Large scale construction, development of service industry and hub of Indian Information Technology has led to huge consumption of ceramic tiles and sanitary wares in a number of cities and towns in the Southern region in past one decade. Bangalore, Chennai, Hyderabad, Cochin and newly built capital Amravati are among the top 20 consumers of ceramic tiles (on volume basis) in the country. Besides these cities, a number of tier II cities and towns too have adopted to ceramic tile usage in a big way. Higher urbanization and industrialization in Southern India as compared to all India average is an important factor in the consumption of higher volume of tiles and sanitary ware in the
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region as compared to other regions in the country. These four states have 13 cities out of the list of top 50 cities based on the highest construction activities complied by Confederation of Indian Industries in mid 2015. Since, a number of these cities are in their initial phases of construction, it is expected that cumulative demand of ceramic tiles and sanitary ware would register far higher growth as compared to recent years.
Production overview
Catered by eight plants from organized sector players and an equally number of smaller plants by independent ceramic tile producers, South Indian ceramic tile manufacturing industry is on an upward swing for last few years. Regular capacity addition and modernization by existing players and addition of smaller players in ceramic tile manufacturing has added considerable capacity in ceramic tiles domain in last few years. Though the demand supply equation of ceramic tiles is still heavily tilted against the region and four of these states have to source more than 50 % of their total ceramic tiles demand from Gujarat based producers, yet the situation of local supply is improving year on year. Respective state government’s initiative of making the natural gas available for industries, setting up of dedicated ceramic zones and overall development of industries are likely to result in development of ceramic tile manufacturing industry in some pockets in the region in coming years. In terms of raw material availability, some pockets of Andhra Pradesh, Karnataka and Kerala are endowed with raw materials
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Analysis: India
needed for ceramic production. However, majority of the raw materials needed for ceramic industry is still sourced from Rajasthan and Gujarat. Since, most of the current production in ceramic industry in the region is carried out by organized sector players, who have a centralized purchase system, raw material availability and sourcing has not been a major impediment- at least for now. In sanitary ware segment, two state of the art plants from RAK Ceramics and Roca India are able to meet a significant demand of premium and mid-end of sanitary ware segments in the region. However, for lower mid and lower segment of the market the entire demand is met through the Thangadh and Morbi based ceramic sanitary ware producers. A few small and mid scale producers have started their operations in last few years near Hyderabad, Bangalore and Chennai, but huge cost advantage enjoyed by Gujarat based sanitary ware producers have limited the progress of these few small units.
State initiatives
In August 2016, Chief Minister of state of Andhra Pradesh announced the establishment of ‘Ceramic City’ on the lines of Morbi in Gujarat. The government is planning to set up a ceramic industrial township in an area of 3 thousand acres in either Godavari or Krishna District of the state. The Chief Minister held meeting with the industrialists from Morbi and invited them to start industries to manufacture sanitary ware and ceramic tiles. Furthermore, the Chief Minister explained the availability of resources like uninterrupted power supply, abundant gas, water, land and mineral resources. He mentioned of the availability of soil, limestone, quartz and silicon sand in Andhra Pradesh needed in the manufacturing of ceramics. This would help the industrialist to invest in AP he said. He also mentioned that AP possesses highly skilled manpower and elaborated on the ease of doing business with the state. When the industrialists from Gujarat brought to the notice of the Chief Minister regarding the problems of gas supply, the Chief Minister said that the government is in the process of setting up LNG terminal at Kakinada sea port and the works of the gas pipeline are being done at a quick pace. The Chief Minister stated, “Andhra Pradesh would soon become a ceramic hub for the ceramic industry. Establishment of smart cities and the increasing urbanisation along with increase in the use of tiles in house building will create enormous demand for ceramics in the state and extended Southern region.”
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Targetting from Gujarat
Being the heart of ceramic manufacturing and more importantly being the lowest cost production center of ceramic tile and sanitary ware production, Gujarat plays an important role in meeting the demand of ceramic products in the Southern Indian region. Logistics have always been a big challenge for ceramic industry. Bulky nature of ceramic products makes it economically unviable for ceramic producers to ship their products over long distances. Since, a huge amount of ceramic production takes place in Gujarat. State based producers (or distributors and dealers based in Southern India) have to incur huge sums on transporting these products to major cities in the Southern India. Incurring huge sum of transportation makes ceramic products more expensive as compared to Western and Northern zone of the country, the other two key consuming markets. This factor has made Chinese ceramic products more popular in some pockets of the region. However, Indian government's decision in March 2016 to impose anti-dumping duty of USD 1.37 per square meter (SQM) on all vitrified tiles imported from China is expected to provide level playing field to the domestic players, especially in South India. Till 2013, there was anti-dumping duty on Chinese vitrified tiles. However, after the removal of duty by the government, Chinese companies dumped tiles in India which exerted pressure on domestic manufacturers on account of lower freight rates from China to South India.
H & R Johnson
Largest ceramic tile producer in India, H&R Johnson has the largest installed capacity of ceramic tiles in South India. The company operates four ceramic tile manufacturing units in the region- 2 joint venture units in Andhra Pradesh, one unit in Kunigal (Karnataka) and one in Karaikal (Tamilnadu). A couple of years back, H & R Johnson invested about INR 300 crores towards up gradation of tile manufacturing units at Karikal and enhancing the installed capacity at its joint venture, Silica in Andhra Pradesh. Silica JV unit expansion makes Andhra Pradesh one of the key manufacturing hubs for H&R Johnson. It currently operates two JV units in the State with a cumulative capacity of over 18 million square meters per annum. Andhra Pradesh currently accounts for 33% of the company's manufacturing capacity. The Silica expansion has enhanced the company's overall capacity in South India to 23 million square meters.
RAK Ceramics India
Ceramic powerhouse from UAE, RAK started its journey in India
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Analysis: India
in 2004 by importing premium-vitrified products from the UAE and selling in India. However, in just two years, the company realised the growth potential and set up a manufacturing unit at Samalkot, Andhra Pradesh, on a 202 acre plot. Today, the manufacturing capacity at this unit with three lines is 28,000 sq meters of tiles and 3500 pieces of sanitary ware per day. In addition to its own manufacturing in the region the company sources many of the low end products from Morbi, Gujarat. Till date, it has invested INR 300 crores in Indian operations. The company has planned a capital expenditure of Rs.400500 crore over the coming years. RAK also plans to increase its turnover to INR.2, 500 crore in the next four years. To achieve this almost three-fold increase in revenue, the company has been planning to set up a greenfield project in north or central India. This new facility will also aim to reduce the impact of freight costs in these markets. However, due to the economic and slowdown in the country for past two years, the company has not taken final decision on the expansion plan. Speaking to Asian Ceramics, Ashok Singhal, General Manager at one of the company operated showrooms at Delhi told “India is a strategically important market for us and we intend to enhance our market position by offering innovative, value- added product and services customized to the demands of Indian consumers.”
Kajaria Ceramics
Kajaria Ceramics, one of the largest wall and floor ceramics tiles in the country, is investing INR 1500 million for setting up a polished vitrified tiles making plant near Nellore in Andhra Pradesh. The plant, which would be commissioned by September, next year, would have the capacity to produce 5 million square meters of tiles. The company currently produces 20 million square meters of polished vitrified tiles per year. This would be the second plant for the company in Andhra Pradesh. Kajaria, which closed financial year 2015-16 with revenues of INR 2448 crores with an installed capacity to produce 68.6 million square meters of ceramic tiles from its 10 manufacturing plants located across the country, already has a ceramic tile plant in Gudivada. “The last two years have been very tough for ceramic industry in the country. But things have started to look up since February. The next three years would be positive for the ceramic tile industry in the country, “according to Ashok Kajaria, Chairman of Kajaria Ceramics.
Roca India
Roca currently has seven manufacturing facilities in India that produce ceramics, faucets and plastics. While it has vitreous china manufacturing plants in Alwar, Dewas, Perundurai and Panipat, its faucets factory is located in Bhiwadi, Rajasthan and plastic manufacturing units are based in Sriperumbudur in Tamil Nadu and Pant Nagar in Uttarakhand. Besides the domestic market, the Spanish company exports ceramic sanitary ware from Indian operations to Malaysia, Australia, Europe, Russia, Middle East and Taiwan from India. Roca entered into India in 2006 by acquiring a 50 % stake in an existing sanitary ware producer, Parry ware. Based in South India, EID Parry was engaged in sanitary ware production since 1952. In 1999, after the acquisition of Johnson Pedder, a major
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Ceramic Tile Consumption in Southern States 2011
2012
2013
2014
2015
Andhra Pradesh
64.2
70.7
75.1
79.6
85.1
Karnataka
45.3
49.1
53.0
58.1
63.3
Kerala
21.8
23.3
25.1
27.0
29.7
Tamil Nadu
57.6
60.1
62.5
65.9
69.7
Total
188.9
203.2
215.7
230.6
247.8
Unit- In million square metres
Sanitary ware Consumption in Southern Indian States 2011
2012
2013
2014
2015
Andhra Pradesh
2.30
2,34
2,38
2.40
2.43
Karnataka
2.39
2.43
2.48
2.52
2.57
Kerala
1.12
1.14
1.17
1.19
1.21
Tamil Nadu
2.36
2.38
2,41
2,45
2.48
Total
8.17
8.29
8.44
8.56
8.69
Unit- In million square metres
Leading roof tile companies in Bangladesh Company
City/ Town
Country
Sylhet
Bangladesh
Hatirpool
Bangladesh
Chittagong
Bangladesh
AVA Clay Tiles
Dhaka
Bangladesh
SR Clay Tiles
Satkhira
Bangladesh
KAI Roof Tile Company
Dhaka
Bangladesh
Anuradhapura
Sri Lanka
Sri jayawardenepura Kotte
Sri Lanka
Colombo
Sri Lanka
Sethsirini Tile Factory
Kochchikade
Sri Lanka
Sudarshi Roofing Tiles
Negombo Rd
Sri Lanka
Malabe
Sri Lanka
Khadim Ceramics Aziz Ceramics Mikita International
Samson Rajarata Tiles Clay Mas Tiles Ceylon Ceramics Corporation
Micro Roofing Tiles
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Analysis: India
Indian sanitary ware manufacturer, Parryware became one of the largest manufacturers of sanitary ware in India. Roca has invested INR 140 crores in 2015, 2015 and 2016 in Indian operations towards capital expenditure and working capital, including INR 40 crores in the current year. The company has registered Rs 800 crore sales in 2015 and expects about 15 percent growth in 2016. Roca had to deal with an almost flat demand in the states of Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Andhra Pradesh.
THE DECLINING SHARE OF ROOF TILE USAGE, PARTICULARLY IN NEWER CONSTRUCTIONS HAS GIVEN ROOF TILE PRODUCERS SLEEPLESS NIGHTS IN LAST FEW YEARS Leading Ceramic Producers in South India region
Hindustan Sanitaryware Industries Limited (HSIL)
Hindustan Sanitary ware and Industries Limited (HSIL) is India’s largest player in sanitary ware ( about 40% organised market share) manufacturing in the organized sector with an installed capacity of 3.8 million pieces per annum. In addition to ceramic sanitary ware, the company also produces faucets. Company’s sanitary ware production plants are located at Bibi Nagar in the newly carved out state of Telengana ( formerly Andhra Pradesh has been bifurcated into Telengana and Andhra Pradesh) and Bahadurgarh in the state of Haryana. The installed capacity of Bibi Nagar plant is 2.0 million pieces per annum, whereas the Bahadurgarh plant can produce 1.8 million pieces of sanitary ware per annum. Location of company’s sanitary ware plant in South India gives the company a unique advantage of serving one of the most lucrative market in the country with minimal logistic costs. Proximity to key consuming markets of Hyderabad, Bangalore and Chennai has enabled HSIL to reap rich dividends from the South Indian market. The company has more than 50 % share of the organized sanitary ware market in the Southern region. Acquisition of Barwood Product (QUEO), UK in 2012 has taken the company to luxury sanitary ware segment. The company outsources the manufacturing to its contractors in Europe and imports them to sell in India. In a scenario of growing awareness and preference for foreign brands, the introduction of QUEO by the company will help in increasing its market share in the premium segment. Since its launch, the brand has witnessed robust growth, from a sale of just Rs. 104.1 million in financial
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Company
Location
State
Installed Capacity
Operational Since
H & R Johnson
Kunigal
Karnataka
47,000 MT/ year
1988
H & R Johnson
Karaikal
Puducherry
40,000 MT/ year
1996
RAK Ceramics
Smalkot
Andhra Pradesh
30,000 sqm / day
2006
RAK Ceramics (Sanitary ware)
Smalkot
Andhra Pradesh
3500 pieces/ day
2010
Sentini Ceramics
Krishna
Andhra Pradesh
9.2 million sqm
2002
Murudeshwar Ceramics
Hubli
Karnataka
6 million sqm
1998
Murudeshwar Ceramics
Karaikal
Puducherry
5.4 million sqm
2002
Anuj Tiles
Porur
Tamil Nadu
5.4 million sqm
2007
Roca India
Perundurai
Tamil Nadu
4 million sqm
1998
HSIL
Bibi Nagar
Telengana
2.0 million pieces
1998
Nellore
Andhra Pradesh
3.65 million sqm
2016
Vijaywada
Andhra Pradesh
2,2 million sqm
2012
Anjani Tiles Vennar Ceramics
Road Distance Between Key Southern Markets and Key Ceramic Production Centers in Gujarat Bangalore
Chennai
Hyderabad
Trivandrum
Morbi
1720 Kms
2076 Kms
1422 Kms
2459 Kms
Himmatnagar
1564 Kms
1919 Kms
1266 Kms
2303 Kms
Thangadh
1628 Kms
1983 Kms
1330 Kms
2367 Kms
Ahemadabad
1490 Kms
1842 Kms
1218 Kms
2232 Kms
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Analysis: India
year 2013, it has grown to Rs. 300 million in financial year 2016. The company has also undertaken debottlenecking in its two sanitary ware plants in Telanagana and Haryana with a planned outlay of INR 500 million. This will increase the sanitary ware capacity by 0.4 million pieces. Post completion of debottlenecking, the total installed capacity of the company will increase to 4.2 million pieces.
Joint ventures
In order to cater to South Indian ceramic tile and sanitary ware market and minimise the logistic costs, organised sector players have made various arrangements with smaller players in Southern region. While, some of them have entered into joint venture with the smaller players in the region, others have acquired these smaller players.
Cera Sanitary ware & Anjani Tiles
In 2015, leading sanitary ware producer CERA Sanitary ware Ltd entered into a joint-venture agreement with an Andhra Pradeshbased Anjani Tiles Ltd to set up a ceramic vitrified tiles facility in Nellore, Andhra Pradesh. CERA holds 51 per cent stake in the project, which had a total outlay around Rs 68 crore. The plant has an initial capacity of 10,000 square meters per day of tile manufacturing with further possibility for expansion. "South is a major market for us. And with new capital of Andhra Pradesh, Amaravathi being announced we see greater scope with increased construction activity there. Also, Andhra Pradesh has announced subsidies to encourage businesses to grow," according to Vikram Somani, of CERA Sanitary ware Ltd. "Of the total production at new facility, about 50 per cent is consumed in Andhra Pradesh, driven by boost from new city Amaravathi. The plant is close to Ennore and Krishnapatnam ports, hence exports too would be conducive in future," according to K V V Raju, chairman of Anjani Tiles Ltd.
Kajaria Ceramics & Vennar Ceramics
Kajaria Ceramics acquired 51% stake in Vennar Ceramics Ltd, based in Vijayawada, Andhra Pradesh in April 2012, with an annual capacity of 2.30 million square meters of high end ceramic wall tiles. Production has commenced in the July, 2012. Vennar started operating at full capacity in financial year 2015.
Kajaria Ceramics & Florea Ceramics
Kajaria Ceramics has acquired a 51% stake in Floera Ceramics Pvt. Ltd, which is putting up a manufacturing facility of polished vitrified tiles with a capacity of 5.70 million square meters per annum in the state of Andhra Pradesh. The company has already acquired the land for it and plant is expected to be commissioned by April 2017.
H & R Johnson & Sentini Ceramics
Andhra Pradesh Company- RAK Ceramics Location- Smalkot Products- Ceramic Tiles and Sanitary ware Markets- Primarily domestic market. Others- The only multinational company in ceramic tile production in India, RAK Ceramics operates a ceramic tile and sanitary ware manufacturing plant in the state of Andhra Pradesh at Smalkot. RAK Ceramics India has an installed capacity of 30,000 square meters of wall and floor tiles and 3500 pieces of sanitary ware from its state of the art plant located in Andhra Pradesh. UAE based RAK Ceramics is one of the most technologically advanced ceramic producers in the country. The company has been contemplating to start a Greenfield ceramic manufacturing plant in the country for past three years. But, economic situation and slowdown in Indian construction market has resulted in company delaying its new plant in India.
Telengana Company- Hindustan sanitary ware Industry Limited ( HSIL) Location- Bibi Nagar Products- Ceramic Sanitary ware Markets- Domestic and export markets. Others- Hindustan Sanitary ware Industry Limited or HSIL as it is popularly called is largest ceramic sanitary ware producer in the country. The company has two sanitary ware manufacturing plant in the country- one in Bibinagar in Telengana with an installed capacity of 2.0 million pieces per annum and other at Bhadurgarh in state of Haryana with an installed capacity of 1.8 million pieces of sanitary ware per annum. In addition to sanitary ware, the company also produces complementary products such as faucets at its two plants located at Alwar and Himachal Pradesh.
Tamil Nadu Company- Roca Location- Perundurai Products- Ceramic sanitary ware Markets- Domestic and export markets. Others- Spanish sanitary ware producer Roca was the first multinational sanitary ware producer to enter the Indian market by acquiring a stake in an existing domestic sanitary ware producer. The company which has two sanitary ware manufacturing plant in the country enjoys a significant share in South Indian market by virtue of its presence in the state of Tamil Nadu. In recent years, the company has made several acquisitions in bathroom industry ( Faucets and pipes) to consolidate its position in the bathroom industry in the country.
Karnataka Company- H & R Johnson Location- Kunigal Products- Ceramic Tiles Markets- Domestic and export markets. Others- Largest ceramic tile player in India by installed capacity, H&R Johnson along with its joint ventures and subsidiaries have a capacity of over 58 million square meters per annum spread across 10 manufacturing plants across the country. Company’s manufacturing facilities are located in Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Pondicherry and Andhra Pradesh. H&R Johnson also has its own plants for bathroom CP fitting products at Himachal Pradesh and state of Jammu & Kashmir. The company produces ceramic tiles in 20 different sizes, 9 different levels of thickness and 15 surface finishes to suite functional and aesthetics requirement. H&R Johnson provides Johnson tiles under three verticals – Johnson Marbonite, Johnson Porselano and Johnson Endura.
Sentini Cermica Private Ltd is engaged in the manufacturing of ceramic floor tiles at Chigurukota in Krishna district of Andhra Pradesh. This unit is an equal ( 50 : 50 ) joint venture between the Sentini group and H & R Johnson. The company was incorporated in 2002 and the first phase of the plant was commissioned on 2004. Sentini manufactures ceramic floor tiles under the brand name of “ Johnson”. Currently the company has installed capacity of 9.125 million square meters of tiles per annum.
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Analysis: Tile trade
Exports under pressure China in need of an urgent response
AC wraps up the year by looking at how the landscape of the international tile industry seems set to continue changing as China – the dominant player in global exports – comes under increasing pressure in terms of price and quality‌
N
obody can deny the fact that exporting ceramic tile has become more challenging. Also the numbers do not lie and show clearly that Chinese Ceramic exports are not going up but instead are flat or slowly declining. Understanding the reasons why this is happening helps you take better decisions on what to do as a company or as a country if you could possibly do that. Many companies have been outsourcing tiles from many countries to distribute in our stores in Mexico, USA, Panama, Guatemala and China. In all these years they have been doing this they learn many things and understand where the industry is going. As they are continuously in contact, traveling, sourcing or distributing in or from the top ceramic manufacturing countries in the world it makes things a lot easier to see. These same companies also do have very important business relationships with Italy, Spain, China, Turkey, Brazil, Mexico, India which are among the top manufacturers and or distributors or consuming ceramic tile countries in the world. We saw and experienced the deep decline in production and exports of Italian and Spanish Tiles to USA and the rest of the world, the USA recession and big decrease of ceramic imports to the Country, the Mexico Dumping Case Saga with China (Why, Who, What pricing, which products, the resolution, the minimum price agreement, the companies involved), the way Spanish manufacturers are fighting back and making significant progress in their exports and use of installed capacity, the way the Italians always try regardless of the economic conditions on fighting and keeping their place in the world ceramic industry, and many more things. All of this experiences, all the trips to these different countries,
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Export value of ceramic tiles by Province
all the knowledge acquired help you see how things are developing and how these things will shape the future. In previous articles I have written that date more than 6 months ago I was talking about Spanish different Brands and Manufacturers and their future impact on Chinese exports to many countries in the world among them some of the top
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Analysis: Tile trade
Growth rate of export values for 2016 Q1-Q3 (%)
consumers like USA, Mexico, Australia and Canada. China in all these past few years (Specially the last 5) is not getting any cheaper, the rising costs of materials, labor and energy is making Chinese goods less attractive to be purchased from these customers and they are selecting instead Spanish Ceramic tiles that are very closely priced to Chinese (Very close, within cents to even a dollar per m2). Obviously not all sizes and styles can be compared or are priced at the same levels but unfortunately the ones that sell the bigger volume yes, like 60x60 glazed porcelains, and the smaller sizes like 30x30, 33x33, 45x45 and 50x50 that the Spanish manufacturers have no problem whatsoever making and at very competitive prices. This will keep affecting the exports of Chinese Ceramics due to the competitiveness of Spanish Tiles. So if China can’t be more Export value of tiles by destination (2016, Q1-Q3)
Growth rate of export values for 2016 Q1-Q3 (%) by destination
pricing competitive or attractive what should it do? Pricing is no longer and advantage, then what? There are only two ways: If we keep doing the same the Chinese Exports will keep sharply declining in the next two or three years and most manufacturers will change their strategy and focus on the domestic market which is big and still somehow healthy (No matter what the people say) and this unfortunately will bring all the brands many new headaches and price wars. (unfortunately this already started) But does this mean that the Chinese Manufacturers declared themselves non-competitive vs. Spanish Tile manufacturers? Or should something more should be done? There is common wisdom that Chinese manufacturers need to focus more on quality, design, creativity and the things where we all know China still is and will be unbeatable (Polished goods, rectified ceramic, mid to big size ceramic like 80x80, 90x90, 100x100, 60x120) and just keep making them better and world class quality. A battle here and there may have been lost but not the war surely? The industry has to keep trying harder to make Chinese Ceramics the top choice but not because of price ONLY but instead the best products that money can buy.
The statistical view
Export volume of ceramic tiles during 2016Q1-Q3 is 739m.m2, decreasing by 6.11%. Export value of ceramic tiles during 2016Q1-Q3 is USD 4,354m., decreasing by 23.63%. The decline of export volume and value for 2016Q3 was expanded compared with 2016Q2.
Export volume by month
All months show negative growth, except March. The export volume for March was 69m.m2, up 36.87%. February is the bottom month on export volume and tits growth and the export volume was 42m.m2, down 40.96%.
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AC 16-10
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63
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Analysis: Tile trade
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Export value
All months show negative growth, except March and April. The export value for April was USD 604m., up 17.76%. The bottom month was February on export value (USD 289m.) and its growth (-56.35%).
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Export value by source provinces
Export value of ceramic tiles from Guangdong for 2016Q1-Q3 was USD 2,874m., accounting for increasing for 66.01% of China total and decreasing by 31.59%. In view of growth rate of export value, all provinces show negative growth, except Jiangxi. The export value from Jiangxi was USD 525m., up 107.54%.
Export value by destination
The top five export destinations are USA, Philippines, Vietnam, Saudi Arabia and South Korea. Export value to USA was USD 280m., decreasing by 13.94% and accounting for 6.43% of the total. Export value to Philippines was USD 270m., increasing by 36.8% and accounting for 6.21% of the total. Export value to Vietnam was USD 223m., decreasing by 71.16% and accounting for 5.11% of the total. In view of growth of export value, all countries show negative growth, except Pakistan, Philippines and South Korea. Export value to Philippines was USD 270m., up 36.8%. Export value to Vietnam was USD 223m. down 71.16%,
Export value by destination continent
The top destination continent was Asia and the export value was USD 2,652m., decreasing by 27.69% and accounting for 60.9% of the China total. In view of growth rate, all continents show negative growth. Oceania shows the least negative growth (export value USD 160m., down 3.73%) and Europe shows the most negative growth (export value USD 131m., down 38.06%). Export values by destination continent (2016, Q1-Q3)
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Talking Shop
Talking Shop Cleaner, brighter futures A World Bank Project is gradually improving the lot of brick workers in Bangladesh and having a knock-on positive effect for the environment, as AC finds out… Hafiza’s life in the brick kilns of Bangladesh is a story of before and after. Once she was like the thousands of seasonal workers who labored in searing conditions under the five-story smokestacks of fixed chimney kilns spewing so much coal dust and other pollution that it killed surrounding vegetation. Temporary housing lacked access to clean water or local health care, and families like hers moved around in search of other jobs when the kilns shut down during monsoon. “Before, I worked sporadically on various jobs throughout the year — in the fields, in traditional kilns, on construction sites or as a household helper,” said Hafiza, who is from the impoverished Jamalpur district. “I was low paid and never certain about the next job or income.” Today, Hafiza works in a different kind of brick kiln under a project supported by the World Bank Group. It uses new technology to operate all year while emitting half the pollution. Fulltime employment means more money and a permanent family home. Additional money generated by the kiln’s reduced carbon emissions pays for regular health care, new bathrooms, a dining area and other improved facilities. “Now, I know that I have a job throughout the year and how much money would bring home at the end of the month,” Hafiza said. “The jobs in these kilns are not only far less tiring … but also more stable and earning a higher income than before, similar to men.” The multiple benefits — less pollution, improved quality of life and opportunity, more efficient production — exemplify the clean energy development needed for the world to successfully minimize climate change in coming decades. “This project is a model for the kind of development needed to achieve World Bank Group goals of ending severe poverty, increasing shared prosperity and transforming economies and societies to a low-carbon future,” said Sandrine Boukerche, a World Bank carbon finance specialist, who recently traveled to Bangladesh. Brick production is a mainstay of the economy in Bangladesh, one of the poorest countries in South Asia. As rapid urbanization brings more construction and demand for bricks, the booming industry hires vulnerable workers like Hafiza at the traditional fixed chimney
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kilns concentrated around urban areas. Some 8,000 traditional kilns emit an estimated 10 million tons of CO2 and other environmental pollutants into the atmosphere each year, causing a harmful impact on health, agricultural yields and climate change. Workers, many lacking shoes or protective gear, earn very low incomes under harsh conditions due to poor and rarely enforced labor standards. In 2008, the Bangladesh Hybrid Hoffman Kiln (HHK) project began paving the way for cleaner brick technologies, improved labor conditions and better lives for the workers. New Technology Originally developed in Germany, the HHK technology was imported to Bangladesh after improvement by the Chinese and now has been redesigned to suit local soil conditions, humidity levels and climate. It deploys a mix of pulverized coal and clay to improve the quality and proper burning of the bricks. In addition, the waste heat from the kiln is collected and re-used to dry the green bricks before they enter the kiln. Due to those innovations, HHKs use only half the amount of coal compared to fixed chimney kilns and trap coal particles inside the brick to prevent them from becoming air-borne fly ash. The World Bank Group project partnered with the Industrial and Infrastructure Development Finance Company Limited (IIDFC), a private non-banking financial institution, to provide financing and technical help for nine HHK brick kilns in Bangladesh. Carbon Credits Registered as Clean Development Mechanism (CDM) projects under the United Nations Framework Convention on Climate Change (UNFCCC), they are expected to cut emissions each year by about 75,000 tCO2e per year, the equivalent of taking 15,843 American passenger vehicles off the road. Because the HHKs reduce carbon emissions, they earn certified carbon credits (CERs) sold to the World Bank Group’s Community Development Carbon Fund (CDCF) and the Danish government. To date, credits for about 67,000 tCO2e have been issued and another 53,000 tons are being verified.
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Talking Shop
Revenue for the carbon credits brings kiln owners an additional stream of money, with some earmarked for community benefits for workers. The carbon money pays for twice-a-month doctor visits, separate on-site toilet and washing facilities for men and women, dining facilities and safety gear including gloves, boots, masks and helmets. Such benefits and facilities don’t exist at the traditional fixed chimney kilns. Other advantages include mechanization that reduces hard labor to enable equal pay for women, roofing to protect workers from the sun, and better air quality that allows workers to grow crops around the kiln sites. Collateral benefits provide more opportunity for some of the most vulnerable people in Bangladesh — poor women like Hafiza or Basana, who also works at one of the project kilns. Along with better pay, less demanding labor, regular health care and improved facilities, Basana can now send her 11-year-son to an English-language school. On average, an HHK kiln can produce 15 million bricks a year -compared to four million by a fixed chimney kiln — while reducing pollution by 50 percent. However, HHK technology costs up to 15 times more to build than traditional kilns. Carbon finance tools and mechanisms played a catalytic role to create incentives for the first entrepreneurs to adopt cleaner brick technology and provide additional comfort to financial institutions willing to loan money at a rate applicable to prime customers. Now more clean brick technologies are emerging
SOME 8,000 TRADITIONAL KILNS EMIT AN ESTIMATED 10 MILLION TONNES OF CARBON DIOXIDE and labor standards continue to improve in response to the World Bank’s trail-blazing project and other programs supported by the Bangladesh government, the World Bank Group and other development partners. In addition, the government in 2014 imposed a ban on the new construction and operation of existing fixed chimney kilns near residences or forests, further bolstering the expansion of HHKs and other climate-friendly technologies. Despite the progress, more needs to be done, with estimates of a $3 billion price tag to build the 1,000 HHK or other advancedtechnology kilns necessary to replace existing traditional kilns. The Paris climate agreement reached last year at COP21 and signed by more than 175 nations includes national plans for embarking on the economic and social transformation from reliance on fossil fuels to using cleaner energy sources. “Now the challenge is to build on this and other models to make the commitments of the Paris Agreement a reality on the ground in coming decades,” said Vikram Widge, outgoing head of the World Bank Group’s Climate and Carbon Finance unit.
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EXHIBITION PREVIEW
EXHIBITION PREVIEW
EXHIBITION PREVIEW
30th Anniversary for CERAMICS CHINA@Unifair, the most momentous ceramic industry event in 2017! 2017 China International Exhibition for Ceramics Technology, Equipment and Product (known as CERAMICS CHINA@Unifair 2017), will take place in Canton Fair Complex, Guangzhou, China from June 1st-4th, 2017. As China ranks the top one country in the fields of tile production and consumption, CERAMICS CHINA@Unifair 2017 is no doubt a perfect platform for ceramic industry - where all technical innovations, machinery and equipment are displayed in order to be able to meet the challenges of the rapidly growing and changing market. Since first launched in 1987, CERAMICS CHINA@Unifair has witnessed the industry changes, while the only constant is its full efforts for promoting ceramic industry development. In 2017, CERAMICS CHINA@Unifair will come to its 30th anniversary. It is expected to reach 100,000+ sq.m with 80,000+ visitors and 1,000+ exhibitors, which marks the largest and strongest ceramics trade show in the world. In addition to full display of raw materials, decoration materials, technology and equipment, design services, spare parts, etc., there will be additional activities for the celebration such as a forum for 30 years’ development of China’s ceramic equipment and technology, etc. With the launch of “Made in China 2025” development strategy, the organizer, Unifair Exhibition Service Company has predicted emerging trends and demands for sustained rise in different sectors. Therefore, another two new exhibitions will proceed at the same place and same time with CERAMICS CHINA@ Unifair 2017. They are 2017 International Exhibition for Advanced Ceramics and Powder Metallurgy Technology, Equipment & Product (ACPM EXPO 2017), endorsed by ACerS, and 2017 China International Exhibition for Tableware Ceramics Technology, Equipment and Raw Material (TABLEWARE TECH 2017), the only professional exhibition in the field of tableware ceramics production. Based on years of rich resources from CERAMICS CHINA@Unifair and active global promotion
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from very early on, the exhibitions display an optimistic outlook. There will be one more hall compared with previous editions. The total nine halls offer more space for stronger international presentation and wider range of products. Both the expected 80,000+ visitors and 1,000+ exhibitors can benefit from the whole industry sectors. “CERAMICS CHINA@Unifair is one of the most important events in global ceramics industry with increasing importance in Asian and global market. As the world-leading ceramic manufacturer and exhibitor, we are very satisfied with the exhibition and the organizer services.” Said Mauro Masini, General Manager of SACMI Hong Kong Ltd. at CERAMICS CHINA@Unifair 2015. To continue the success, CERAMICS CHINA@Unifair 2017 is a must-attend event for all people in ceramic industry.
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Insight
VIETNAM Leading glazed tile export destinations (sq metres)
Leading glazed tile import sources (sq metres)
Total glazed tile exports (sq metres)
Total glazed tile imports (sq metres)
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Leading unglazed tile export destinations (sq metres)
Leading unglazed tile import sources (sq metres)
Total unglazed tile exports (sq metes)
Total unglazed tile imports (sq metres)
Total unglazed tile imports (sq metres)
Leading sanitaryware import sources (no. pieces)
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■ The Casting Couch: Asia decides ■ Vietnam sanitaryware markets and makers ■ Tile decoration: choosing the right option ■ Brick opportunities in North Africa ■ SPECIAL FOCUS: PRINTING TECHNOLOGY
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AC 16-10
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Roof tile markets in southern Asia INSID E The A Export patterns for Asian tiles C Year p la n n e Thailand: the Lampang factor r! Southern India: a tile and sanitaryware centre FREE INSIDE: YOUR 2017 YEAR PLANNER! FREE
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■ Economics and logistics in Asian brick ■ Depression or recession: oil price effects ■ The rise or fall of the WC ■ The Chinese tile capacity conundrum ■ SPECIAL FOCUS: ASIAN TILE MANUFACTURERS
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AC 17-5
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■ Bangladesh: a brick market to modernise? ■ Digitising decoration in China ■ The rush for Africa ■ Casting options for India sanware ■ SPECIAL FOCUS: ENVIRONMENTAL CHALLENGES
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■ Mid-term blues: China in focus ■ Vietnam: tile expansions ■ Iran: whiteware costs in the spotlight ■ Design influences: ASEAN responds ■ SPECIAL FOCUS: DIGITAL PRINTING
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AC 17-7
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■ ■ ■ ■
Roof tile markets in ASEAN Tableware traders: evading extinction Malaysia: a country in focus Rising tides: India's new wave of tile exporters SEE US AT: ASEAN Ceramics
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The rise of Andhra Pradesh China: frit and glaze analysis Whiteware woes for Indonesia? Sanitaryware markets of North Africa
OFFICIAL MAGAZINE: Indian Ceramics 2017
AC 17-3
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■ Vietnam heavy clay markets ■ Turkey: a new vision for sanitaryware ■ Houseware production overview ■ Province Profle: Zibo ■ LAUNCH ISSUE; ASIATECH: A FINE CERAMICS FOCUS
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■ India: tableware market or maker? ■ Dumping and duty diligence ■ Turkey: a global tile trader ■ Chinese sanitaryware breaks the mould ■ SPECIAL FOCUS: ASIAN TABLEWARE MAKERS
SEE US AT: ISH China, Ceramics China, Middle East Stone & Ceramic
AC 17-8
Bangladesh fights for place at the table Inspection and certification Whiteware: investment challenges for Russia Automation: the next step
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■ China: heavy clay opportunity? ■ Sanitaryware production costs ■ Glaze and frit: the digital impact ■ Indonesia: a tile centre for ASEAN ■ SPECIAL FOCUS: CERAMIC RAW MATERIALS DIGEST
SEE US AT: IThe Big 5, Dubai, Bricks Expo Ahmedabad, ASIA TECH 2017
AC 17-10
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Hunter and the hunted
Freightened? Dear Diary,
ics companies and freight in I guess I have a love / hate relationship with logist evil actually getting the product general. I can't say I find it interesting, a necessary customer actually needs it. That's the where B from Point A where it was made to Point the freighting process – until about alent ambiv ally gener I'm pretty much crucial but bad weather and MY ship is there or those times where I'm told the port is too full neither I nor my customer where on locati some at stuck is with MY container on it it panied by the customer accom ly needs the container of goods. This situation is usual on time and I'm left to arrive to iner conta the for is it l describing in detail how crucia container by force of 20' a move to try to assuage the weather gods or find someway granted until things for t freigh take I is point the will from the ocean to the port. I think will occasionally media l socia go wrong and then I panic. It doesn't much help when with a fork lift guy a ents; accid and nts provide me photos of various freight incide derailing....or train a or side the off falling iners conta with ship dropping a bomb, a Tianjin port being blown off the map. provided the interest. Probably far Most recently it has been Hanjin Shipping that has more than they ever wanted to. er services around the globe 'Hanjin shipping operates some 60 liner and tramp Its fleet consists of some 200 transporting over 100 million tons of cargo annually. ing has its own subsidiaries Shipp Hanjin rs. carrie container ships, bulk and LNG tion and it has 230 branch offices dedicated to ocean transportation and terminal opera in 60 different countries.' (From Wiki) being left stranded and unable to Or it did. Back in September I read of Hanjin ships of a woman who had paid to be was story first dock and unload their goods. I recall the allowed to dock in Singapore as the a passenger on a Hanjin cargo vessel that was not Having read 'Down to the Sea in paid. be stevedores wouldn't accept that they would in being a passenger on a cargo ation fascin mild a oped devel Ships' (Horatio Clare) I'd ctical for where I need to visit impra ship. It may take longer than scheduled airline, be crammed into a pressurized ngers passe other of s horde but I wouldn't have to deal with entertainment. However flight in aluminium sausage with minimal personal space nor 't going to be allowed wasn that ship Hanjin a on finding out the poor woman was stuck ess trips by sea busin of tic notion to dock for the foreseeable future killed the roman stone dead. es say $5.4B and $14Billion of its Hanjin has a debt of $2.5billion though some sourc funding (said to be $190 million for rate freight are current stranded with Hanjin despe yet Hanjin is only the 8th size in ible incred s sound It ded). simply so it can be unloa and such. In fact Hanjin reen Everg biggest shipper – way behind Maersk, COSCO, Far East to North America the of 7% le sizab a h thoug ing moves only 2% of active shipp ing lines. The problem shipp other market. That debt? It pales besides the debts of 18 through the supply down trickle es quenc conse the that is with Hanjin going bankrupt is fuel suppliers and ports, rders, forwa chain; manufacturers, exporters, importers, freight (though they up went rates t freigh ership receiv labour. As soon as Hanjin went into ble nagea to unma were at all time lows) this volatility makes prices swing to hear that proportions and availability suffers. No customer likes of dollars in price. effectively their requirements have risen hundreds known for many been Yet the problems in the shipping industry have
*The views expressed in this piece reflect those of the author, and not of the magazine or its staff
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Hunter and the hunted
s t h g u tho
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over capacity and lack of demand years – analysts at least two years ago predicted that rting resources for this suppo for hing Searc s. failure would sooner or later result in 't known about. wasn this like article shows reports going back to 2012. It is not with greater ships larger for trend the and ships Given the time it takes to build (very big) ships more are there capacity and thus efficiency, especially regarding fuel try insiders indus as time same the at years due to become available in the next few to rise needs s) (TEU' alent Units suggest that scrapping 600,000 Twenty Foot Equiv ity. This capac over of levels e sever t curren to 800,000TEU's per year just to maintain ing beaches in break ship for work of lot a and rces resou of seems a terrible waste Bangladesh. the gluttony pre 2008 financial It is obvious we are still paying for the madness of the industry and manufacturing ted crash. Supposedly sensible business people expec . The expected rebound dingly accor fleets ed plann to continue to increase and thus habits have changed mers Custo after 2008 hasn't happened to the degree expected. ry and congestion delive time on nd dema mers too. There is more near-shoring, custo markets the oping devel in the in ports doesn't help that or associated cost. At ports explains the Which pace. kept not has ports infrastructure leading to new or enlarged ports will Indian n certai driving to calls we get advising due to bad weather the trucks need mers custo and ity secur added is take a week to deliver rather than a day. There delays add up and costs chain y suppl the in e peopl many so greater transparency, with nship with shipping and freight everyone becomes frustrated and my love / hate relatio trying to win our business, us ct conta anies comp t becomes understandable; freigh e servic levels drop and the costs rise. promise the earth and rather too quickly soon the try has acted in a deluded fashion; indus the that ver It seems to the uneducated obser pointed quite the otherwise. It is like imagining recovery and growth when all evidence d 787s and hardly any airports wante mers buying hundreds of A380s when the custo could handle the capacity the A380s bring. trying to find temporary There doesn't seem much hope for Hanjin. It has been invest if the would who But out. it buy to s suitor funding and trying to find You might buy a few more t? correc is nd aforementioned over capacity and lack of dema overheads you can ill and ed cover well are y alread that ships you don't need, routes be the attraction? would What in. afford – given the debts the shippers are already pick certain ships cherry to able being or share t Some speculate increasing marke r to find anyone. furthe & r furthe at low cost. Maybe. Hanjin have had to cast the net Again it will be ates? altern the are what staff Though this ultimately will hurt Hanjin crew from the hired the , chain a great shame but the staff lower down the corporate s will have ration corpo whilst most suffer will likes of the Philippines, the office staff &c trying to doing y alread some are insurance or fight out the consequences in court, as avoid paying Hanjin monies owed. but maybe extra volatility which With Hanjin gone – there will still be overcapacity t rates and problems with port freigh st really is the last thing we need as we can't foreca se. increa may times ing congestion or delays with shipp respect and take more interest Maybe I should learn to give freight and shipping more it needs to be at the right where not it's if fails price in it – the right product, at the right time. Until next year, Your humble servant, William Hunter
*The views expressed in this piece reflect those of the author, and not of the magazine or its staff
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