Asian Ceramics - AC16-9 Edition by Bowhead Media Ltd

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AC16-9

PAN-ACEA?

VIETNAM SANWAR E IN FOCUS

IN FOCUS: Heavy clay in North Africa

Sanitaryware casting Logistics in India Plus news, views, analysis and much more!

News

Contents: AC 16-9 News

Features

4 Inside Asia

34 North African brick industry

Cleia launches Eco Clay at Tecnargilla.

8 Welcome

Change sweeps through Tangshan.

10 Across The Continent

Openings, closures and industry moves from across Asia.

24 International News Our eye on the international arena.

28 Material Matters Raw materials news and views.

30 Comment & Analysis Egypt: a springboard for China?

42 Vietnamese sanitaryware

Jahir Ahmed reviews how a process of investment and innovation is restoring order and raising hope of a brighter booming future.

52 Logistics in India

Arguably the last piece in the puzzle for India’s ceramic industry is an effective freight network to enable the cheaper, more efficient movement of goods and materials to more lucrative domestic and overseas markets. AC looks at how recent developments could finally be putting that piece in the jigsaw…

Your favourite magazine is now available at the App Store… download today to see your first sample issue! Asian Ceramics: now for mobiles, ipads and androids

Yogender Malik looks at how the brick industries of four of North Africa’s more volatile players, so inextricably linked to the wider fortunes of the Middle East and Maghreb region, have fared recently and how things look for the future.

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Anaylsis 56 Talking Shop

Luc BOURGY - Technology Manager Raw Materials and Ceramics Applications and Cédric POILLY - Technical Support & Projects, Tiles Body, Glaze & Engobe, both Imerys Ceramics, discuss raw material performance.

58 Insight

Analysis and insight into China.

60 The Hunter And The Hunted

William upgrades to an ipad, but still casts his unsympathetic eye over industry issues: this month he asks if the wonder of “twin cities” has had an effect on the ceramic industry. www.asianceramics.com

Smart Manufacturing Interconnected Automated Solutions

HUMAN AND DIGITAL

Process Analysis Human-Machine Interface Digital Industrial Design

We have explored and observed the world to create a new manufacturing idea, where human knowledge and assets join with virtual intelligence: System 4.0. The path to digitization takes shape starting from process analysis - the heart of the change underlying â&#x20AC;&#x153;smart manufacturingâ&#x20AC;?. We have decided to pre-empt the future by developing state-of-the-art solutions, for a flexible, connected and global industry, where man-machine interaction is at the centre of our activities.

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Inside Asia CLEIA LAUNCHES ECO CLAY AT TECNARGILLA The TECNARGILLA 2016 edition was the occasion for CLEIA to introduce its new solutions for modern, enhanced and more sustainable production units. CLEIA successfully launched the Eco Clay Build label that gathers all technologies and innovations aiming to reduce energy consumption and better preserve natural resources. Eco Clay Build solutions are the heart of the projects developed by CLEIA, in partnership with the company’s clients: - Optimized raw material management with Cleia’s 4C laboratory   - Energy ΔT dryer   - Deforcet kiln   - Biomass technology   - Thermobooster

Welcome

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PAN-ACEA? VIETNAM SANWAR E IN

FOCUS

IN FOCUS: Heav

y clay in North Afric a Sanitaryware casting Logistics in India Plus news, views, analy sis and much

more!

The company's sales grew 24 percent year-on-year to $4.65 million in 2015, boosted by shipments to European markets, after its management decided in 2013 to focus on high-end bone china products with more traditional Chinese painting. Since then Tangshan Shengshi Ceramics has not only made several high-end products, but also decided to venture into independent design.

Shen said to take advantage of them, companies needed to come up with new growth strategies and ensure they have done all their research into their markets. Ceramics manufacturers in Tangshan shipped $110 million worth of porcelain to overseas markets in 2015, including $75 million of bone china tableware. The city took the lead in production volumes of bone china last year from China's other ceramic producing areas.

Publishing Director Andy Skillen Email: askillen@asianceramics.com Direct line: + 44 (0) 208 123 0196 Fax: + 44 (0) 207 183 7196

ADVERTISING AND DESIGN

"We will no longer focus on original equipment manufacturer business models to make meager profits from foreign companies such as Starbucks Corp, IKEA Group and Hilton Group," said Shen Yu, general manager of Tangshan Shengshi Ceramics Co.

"I am not saying that we are not interested in the domestic market, but there are still some rosy areas in developed markets that are worth tapping," Shen said.

CONTACT DETAILS EDITORIAL

Though China has been famous for producing high-end porcelain for centuries, Chinese ceramics manufacturers are now at the crossroads of change. Companies in Tangshan in Hebei province, one of China's ceramics production centers, have already made inroads in the highly competitive European and US bone china markets through e-commerce platforms and increasing investments to upgrade their production technologies and designs.

ibe online at www.asiance

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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

RESEARCH

GUANGDONG AND FUJIAN PROVINCES ACCOUNTED FOR MORE THAN 40 PERCENT OF THE COUNTRY'S CERAMICS EXPORTS

Eager to compete with their rivals in Germany, the United Kingdom and Japan, Chinese ceramics makers are adopting new measures including building e-commerce platforms, creating new brands and promoting high-end custom-made products to expand their exports, said Chen Jiangfeng, vice-president of the China Chamber of Commerce for Import and Export of Light Industrial Products and Arts-Crafts. China's ceramics exports hit $7 billion in 2015, about four times higher than in 2005, data from the Ministry of Commerce showed. "Guangdong and Fujian provinces accounted for more than 40 percent of the country's ceramics exports," said Chen. Statistics from the Ministry of Commerce showed that 71.26 percent of the $1.38 billion worth of ceramic tableware exported to the United States in 2015 was from China, while 71.42 percent of the $1.15 billion worth of the same products imported to member states of the European Union came from the Chinese mainland.

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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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Asian Ceramics (ISSN: 1476-1467), is published by Bowhead Media Ltd, registered in the UK no: 6127651

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Cessation of US trade benefit hits makers • Tile industry calls for higher import duty • Smart-bathroom market so advanced technologies to Kale Group • Chandigarh to get tough on brick sector • Campaigners call for brick indus to bounce-back • Nepal invited to Vibrant Ceramics expo • Regional slowdown forces export efforts • Creadigit for BANGLADESH

Cessation of US trade benefit hits makers Local manufacturers and exporters of ceramic products are feeling the pinch after the US suspended a trade benefit for Bangladesh, industry people said. The falling exchange rate, the poor pressure and supply of gas, and no incentives for export of the products are also eroding the sector's competitiveness, they added. “The cancellation of the GSP (generalised system of preferences) to the US market had a direct impact on us,” said Humayun Kabir, chief executive of Shinepukur Ceramics that accounts for 40 percent of Bangladesh's exports of ceramic products. Export Promotion Bureau data shows Bangladesh exported ceramic products worth $47.58 million in fiscal 2013-14. Exports fell to less than $43 million in the following year and $37.69 million in 2015-16. Bangladesh's ceramics export in 2015-16 was less than that of nine years ago, although 40 out of the 60 ceramic factories in the country were set up in the

last 10 years. Exports also fell short of targets in the first two months of the current fiscal year. The GSP is a trade scheme under which the US allows import of more than 5,000 goods from 122 least developed and developing countries with lower or zero-duty benefit. After the Tazreen Fashions fire and Rana Plaza building collapse, the US suspended the GSP for Bangladesh in June 2013, citing serious shortcomings in labour rights and workplace safety. “After the cancellation of the GSP, we have to pay 30 percent in duties on export to the US,” said Irfan Uddin Rifat, general secretary of Bangladesh Ceramic Manufacturers and Exporters Association and chief executive of Farr Ceramics. He said a jump from zero-duty to 30 percent is too high for the local exporters. Ceramics is a relatively new industry in Bangladesh. It is gas-based, labour intensive and skillsoriented. Value addition in ceramics stands at nearly 65

percent. Clay, which is a major raw material for ceramics, is being imported by the local industries. Some of the ceramic factories in the country rely on exports for their business. Factories like Shinepukur, Farr, Monno, Paragon, and Standard produce tiles, tableware and sanitary ware. But it is tableware that accounts for 95 percent of Bangladesh's ceramics export. “The US is a big market for ceramics tableware. The cancellation of the GSP is the main reason for falling exports,” said MA Jabbar, managing director of DBL Ceramics that will start commercial production in December. A falling exchange rate is also making the local exporters noncompetitive, he added. Industry players also criticised the government's discrimination in giving incentives to exports. “Incentives are given to garments and some other sectors, but not ceramics. Also, garment makers can import raw materials with a zero-duty

benefit, but we have to pay duties and advance income tax for import of raw materials,” said Kabir of Shinepukur Ceramics. The government has given garment exporters a 2 percent currency value adjustment benefit for exports to the European market, he added. “The government policy should be for all exporters, not sector-specific.” These challenges have forced many manufacturers to concentrate on the domestic market for their business, he said. “It is tough for us to compete with China in the international market as it has raw materials for ceramics,” said Mamunur Rashid, managing director of Monalisa Ceramics. He said local consumption, even in rural areas, is rising fast with an increase in the purchasing power of the growing middleclass. An estimate by Bangladesh Ceramic Manufacturers and Exporters Association shows despite tremendous growth of the local industry, the country still imports products to meet 10-20 percent of its demand.

the domestic players," said Patel during his interaction with media at company's plant here today. "Further, we want government to consider raising the duty to USD 2 per square meter or above. Previous duty charges of USD 1.37 did not prove to be effective due to drop in freight rates per container from China, which went in favour of them," he said. He was accompanied by AGIL's MD Mukesh Patel and other senior staff on the occasion of announcing the completion of expansion at it's step subsidiary Crystal CeraAmics, which was acquired by the company last year.

According to Mukesh Patel, the Indian tile industry is estimated at Rs 28,000 crore and growing at a healthy rate of 13 per cent per annum. Some of the key components for growth are government-initiated projects, such as Smart Cities, Swach Bharat Abhiyan and affordable housing, he said. "Apart from these initiatives, we are seeing huge potential in exports, as some European countries along with Brazil have also imposed anti-dumping duty on Chinese tiles. It would sure help us. We expect that the the current market size of Rs 28,000 crore would double in six years"

INDIA

Tile industry calls for higher import duty India’s leading ceramics associations along with other players of tile industry are expected to make a representation to the Centre for re-introduction of the antidumping duty on import of tiles from China and increase the levy to USD 2 per square metre or above. The six month tenure of antidumping duty on Chinese tiles ended on September 30, Asian Granito India Ltd (AGIL) Chairman and MD Kamlesh Patel said. On March 30, the Centre,

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through a notification, slapped anti-dumping duty of USD 1.37 per square meter on import of tiles from China to protect the domestic industry. The notification was meant to be in force for six months, starting from April 1, 2016. "The six month tenure of that notification has lapsed on September 30. Thus, various ceramics associations and tile manufacturers of organized sector have decided to make a representation to the government to re-introduce the duty to protect

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oars to 10% share • Green light for Amber purchase • SITI B&T supplies stry modernization • AGL completes Crystal expansion• Brick industry looks large formats at Riyadh Ceramic • Amin Tile: a new entrant destined... INDIA

Smart-bathroom market soars to 10% share with being more responsible user. Today ready to move in bathrooms, use of digital showers, wellness products like spa, steam cabin, water saving showers etc. Jaquar Group through its luxury bath brand Artize and Premium brand Jaquar has been offering such concepts and products not only to metros but to Tier 1 n 2 cities," said Sandeep Shukla, headmarketing communication, Jaquar Group. Consumers are increasingly focusing on bathrooms as a wellness space and are spending more time there, not merely for hygiene reasons, but to relax, recreate and get a sense of well-being. Jaquar Group, which has multiple products in the smart toilet and bathroom category under its brand Jaquar and brand Artize in India, has 40 per cent of its R&D budget for R&D towards smart products, and almost 10 per cent of its revenue (from the category) goes into promotion. Having registered a turnover of Rs 2,335 crore in 2015-16, Jaquar Group is now expecting to reach Rs 3,000 crore in current financial year. International players too are being lured to India given the rising demand for smart bathrooms and toilets. German

player Sternhagen too recently forayed into the country with designer bathrooms. "Designer bathrooms are now becoming style statements amongst the Indians and it is because they are traveling and meeting different countries people. We are producing high end designer bathroom products including tiles and we are expecting 15 per cent growth in this segment in next two to three years," said Corrina Schmidt, marketing head, Sternhagen which imports almost 60 per cent of its products from Germany. However, as the cost of this kind of smart bathroom products is much higher than normal products, the products are limited to higher income affluent households in India. "There is an eager and varied market for bath services at present. Although budgets vary, consumers are willing to spend more money to enhance their bathroom and seek the assistance of professionals to help guide them through the dizzying array of products available and to transform their current rooms into attractive, convenient and functional spaces they can enjoy for years to come, said Salil Sadanandan, president - South Asia & EMEA at Kohler Co.

Green light for Amber purchase

“The iconic brand also represents a unique opportunity for KHI to enter the NSW tile and paving sector, expanding and strengthening its presence in Australia.” Amber Group Australia has been trading since 1973, with a current network of 27 stores in NSW, ACT and Queensland, and a distribution centre in Blacktown. Johnson Tiles has showrooms in Melbourne, Sydney and Brisbane.

Rising affluence among Indians has led to smart bathrooms and toilets finding further inroads in the overall market. So much so that share of smart toilets and bathrooms in the overall Rs 7,000 crore sanitaryware market has risen from single digits to now 10 per cent. Built using both hardware and software and connected to smartphones and other devices, these high value bathrooms and toilets are currently being manufactured or imported by players like Jaquar, Kohler, Cera Sanitaryware, Roca Bathroom Products Pvt Ltd and Parryware among others. Incurring high costs and technology heavy, these smart bathrooms and toilets carry a price range of anywhere between Rs 2 lakh and 15 lakh. From integrated toilets to digital faucets and showering systems, the market has everything to spruce up the bathing space, making the players bullish about the market segment. For instance, Jaquar is planning to hike share of intelligent or smart bathrooms as part of its new product development initiatives from current 10-12 per cent to 20-25 per cent in next 3-5 years. "As users are getting more aware and want to have the best

AUSTRALIA

Amber Tiles has been acquired by Kim Hin Industry (KHI), one of Malaysia’s largest integrated tile manufacturers. KHI also owns Johnson Tiles, which has operated in Australia for more than 50 years in the domestic and commercial markets. Johnson Tiles’ global

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presence is expected to add international group research and buying strength to Amber’s offering. “This latest acquisition will help grow Amber’s retain presence in Australia and expand the business significantly,” said Kim Hin Managing Director John Chua.

With technology in living spaces becoming more common across the country, consumers are looking for ways to keep their home on-trend by combining luxury with technology. Industry also believes that adoption of smart bathroom products has increased but it will take some more time to create good market size as the prices are not affordable. "Price is an issue in this segment and therefore growth has been at around 10 per cent. We are not expecting a very big market growth at least in near future," said Abbey Rodriges, senior vice president - Sales at Cera Sanitaryware Limited.

NEWS IN BRIEF In the wake of the appointment row that shook that LDF government in Kerala, Industries Minister E P Jayarajan’s relative Deepthi Nishad resigned from he post of General Manager at the Kerala Clays and Ceramics Products Limited. Her resignation letter has been handed over to the Managing Director. Deepthi is the daughter-inlaw of Jayarajan’s brother. She joined the company a week previously. Earlier, appointment of P K Sreemathy’s son Sudhir Nambiar as KSIE MD was cancelled amid nepotism charges. P K Sreemathy MP is Jayarajan’s sister-inlaw. Deepthi’s resignation follows strong stance taken by the CPM state Secretariat and Central Committee over the issue.

AC 16-9

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News

TURKEY

SITI B&T supplies advanced technologies to Kale Group SITI B&T Group has confirmed its role as a trusted partner of Kale Group, one of the world’s leading ceramic tile manufacturers with export operations to 65 countries worldwide. The company has chosen SITI B&T technologies for its innovative full-body porcelain tile production lines, which were officially started up last July during the 59th edition of the traditional Ceramic Festival attended by the management of SITI B&T Group. “After supplying new hi-tech plant to Kale, SITI B&T has worked in close cooperation with the Group’s technical

staff to integrate the plant with existing machinery and create an authentic Smart factory, an advanced facility with high levels of productivity and consumption efficiency,” said Juan Antonio Cavilla, Sales Executive Director SITI B&T Group. On Kale’s production site SITI B&T has installed two EVO

7208/2400 presses, two vertical dryers and a 2950 pre-kiln twinchannel dryer, a 2950 twinchannel kiln of length 166.50 m with MHR 230°C hot air recovery system and a single-layer dryer. Also supplied was an EVO7 digital decoration machine from SITI B&T Group member company Projecta Engineering, LGV vehicles that allow for a high degree of flexibility in production flows and an automatic storage system with BBOX machines designed specifically for handling large sizes. The lines have a productivity of 20,000 sq.m/day. They are currently set up for the

production of 60x60 cm and 80x80 cm sizes but are ready for expansion to 60x120 cm and 80x160 cm. Founded in 1957 by Ibrahim Bodur, who died in May this year, Kale Group is now led by his daughter Zeynep Bodur Okyay, who is carrying forward the Group's growth strategy with great determination. After implementing an investment plan totalling almost 44 million euros in 2016, the Group recently announced a more extensive development programme that will involve total investments of more than 120 million euros by 2019.

be hazardous. “The sale and purchase of cement is being done online now and most cement factories in the area have wound up,” he said. The Divisional Officer said no unit had a green belt on the site and equipment required to wet the ground to settle dust were nowhere to be seen. Chaudhary Lal Singh, Minister

for Forests, Environment and Ecology, had recently said industrial units not adhering to pollution norms would be shut with immediate effect. At a review meeting, the minister had been informed that in order to assess compliance status with respect to prescribed emission and effluent norms, directions were issued to the non-compliant industries.

INDIA

Chandigarh to get tough on brick sector Despite the government’s orders to brick kilns, cement factories and stone crushers to adhere to pollution norms, many have ignored the stipulations, inviting the government’s ire. Officials of the State Pollution Control Board (SPCB) of Jammu divisions have submitted a compliance report to the Regional Director and are awaiting orders to take action against defaulters. As per a recent government order, industrial units not complying with pollution norms will be closed. Instructions have already been issued to the officers concerned to launch a campaign in this regard. Owners of brick kilns, stone crushers and cement factories have been instructed to instal pollution control devices on priority to check pollution. Any industrial unit, especially cements factories, stone crushers and brick kilns, ignoring pollution norms will be closed immediately and the government will take serious action under law against violators. “We are already complying with government norms and have all necessary equipment and supplies required to meet government standards,” said Vikram Randhawa, president, Stone Crusher Owners Association.

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He said there could be a delay in getting the renewal of licences for units, but as far as government norms were concerned, all were being strictly adhered to. Owners had been instructed that the equipment, including dust containment-cumsuppression system, should be installed at every stone crusher and cement factory. A green belt shall be developed along the periphery of industrial units, according to norms. Instructions with regard to construction of wind-breaking walls, especially at charging hopper and crushing places, construction of metalled roads within the premises and regular wetting of the ground on the premises had already been passed to the unit holders though the SPCB . “We visited many brick kilns and stone crushers and found many owners not adhering to norms as per the SPCB. We prepared a detailed compliance report and submitted it to the Regional Director last week. We are awaiting government orders for action,” said AB Jandial, Divisional Officer, Samba. He admitted that most of the brick kilns and stone crushers on the Jammu-Samba highway were located in the open, emitting effluents which could

TURKEY

Usak builds for the future Usak Seramik, one of the country’s longest established tile makers, is looking to positon itself at the high end of the market, where aesthetics and size provide outstanding added value. To achieve that, they have opted to undertake an ambitious plant extension and renewal programme. The investment concerns the production plant located near the town of Banaz (Eastern Turkey, Aegean region), a site covering 220,000 m2 where two new, Sacmi-made high tonnage presses –a PH 7500 and a PH 6500 – have been installed and started-up; the latter, both designed to handle mediumlarge tile sizes, join an already conspicuous pool of existing presses; the investment, which also includes two new EVA 984

vertical driers, comes complete with all required moulds and accessories. The firing department has also been renewed and given a significant boost with a 130 m long all-new FMS 2950 kiln (featuring an optimal load width of no less than 2710 mm and a full range of heat recovery and energy consumption optimising systems) installed downstream from the 12.6 m dryer. Sacmi is also supplying sorting lines made by Nuova Fima, the Group brand that specialises in the development of handling and end-of-line solutions: 3 lines have been shipped to Usak Seramik, all designed to handle a full range of large tile sorting and packaging tasks, even with products as large as 1200x1200.

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BURNING PASSION

We have a burning passion: to produce kilns that consume less and deliver greater savings and care for the environment. Thanks to our TitaniumÂŽ technology we already lead the field. But the flame of our passion continues to burn. And we have no intention of putting it out.

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News

PAKISTAN

Campaigners call for brick industry modernization One of the many trials and tribulations of workers engaged in brick-making was reflected in the recent news of their children protesting against the closure of three schools, facilitated by an NGO and supported by the Sindh Education Foundation, at the brick kilns in Tando Hyder in Sindh. The brick kiln labour force, one of the most vulnerable and marginalised sections of our society, works and lives under debt bondage. Deprived of social, health and safety protections, and decent shelter and civic entitlements, brick kiln workers have been trapped in an exploitative cycle for decades. The law to eliminate debt bondage, the Bonded Labour System Abolition Act of 1992, and civil society’s sustained but small-scale efforts to support brick kilns workers have not achieved the desired results. The reasons include lack of implementation of laws, absence of a regulatory framework for the brick industry and abundant supply of unskilled and cheap labour. It seems the social movement and the framing of the law have both failed to uplift the brick kiln sector’s labour force. So, what can be done to initiate change? How can the old social order — oppressive worker-employer relations — be removed to make way for a better bargain for workers? The answer is to

introduce alternate technology that would challenge the status quo and compel changes in the production relations of the brick sector. It is time that Pakistan’s outdating, polluting, inefficient and energy-consuming method of making bricks manually and baking them in the bull’s trench kiln (BTK) should give way to efficient and cleaner brick technologies, such as the Hoffman kiln or tunnel kiln — as it happened in China, is happening in Bangladesh, and is under serious debate in India. In Latin America — Peru, Argentina, Brazil, Bolivia, Ecuador, Colombia, Nicaragua, Honduras, and Mexico — artisanal brick-making is being modernised under a multipronged strategy. Energy security is the new paradigm in the global discourse on the brick kiln sector. Human and labour rights frameworks are no longer talked about. Fortunately, change in technology has brought in social dividends and led to improved labour standards and work conditions in the brick kilns. According to an estimate, there are 12,000 brick kilns in Pakistan and 99pc are using the primitive BTK technology, consuming almost 40 per cent of locally produced coal. Besides coal, the sector uses agro waste, rubber tyres, plastics, etc, which produces highly toxic gases.

Attempts made by a few kiln owners to introduce alternate technology have not been successful. Reasons include the high cost of technology and capital investment, resistance to technology transfer, lack of knowledge of modern innovations and lack of motivation for skills enhancement. There is neither a legal framework nor any standardisation of kiln design and quality of bricks produced. The sector is not recognised as an industry; hence kiln owners cannot access credit. In a 2012 evaluation of energy conservation potential in brick kilns, undertaken by the Saarc Energy Centre in Islamabad, the researcher found tunnel kilns to be the most energy efficient. However, it was recommended that since “the process of technology transfer and adaptation of new techniques is usually not welcomed [...] it is envisaged that low investment proposals with a modular approach on energy conservation measures may present a high probability on acceptance”. The global happenings in the brick sector provide an opportunity for local civil society groups and NGOs to adopt a similar approach — advocacy and support for the induction of alternate technology — to address human rights issues afflicting the sector. There is a need to motivate, despite all

the misgivings of civil society, and to take into confidence the key stakeholder — the Brick Kiln Owners Association which, on its website, cites ‘mode rnisation of brick kilns’ as part of their agenda. Experiences from Bangladesh can be shared, where the hybrid Hoffman kiln technology has been introduced in nine kilns after redesigning by the Chinese to suit local conditions. The project is funded by the World Bank Group in partnership with a private financial institution. Civil society groups in Nepal are also looking toward cleaner technologies in the brick sector. Better Brick Nepal, initiated in 2014 by the BrickClean Network, is aiming to address labour and environmental issues with the support of international donors. The government also must play its role and adopt policy and legislative frameworks for the brick kiln sector, and extend incentives to the owners for technology transfer and skills development of its workers. In contrast to the tunnel kiln, Hoffman kiln technology is labour intensive. Even if a portion of the labour force is ejected from the currently ‘cursed’ sector, it would be for the better. In a study conducted by the Sustainable Development Policy Institute a few years ago, 93.5pc of the workers stated that they would leave work at brick kilns if they could.

INDIA

AGL completes Crystal expansion Tile company Asian Granito India Limited (AGIL) has said it has completed a major expansion project at its step subsidiary Crystal Ceramics with a total investment of Rs 170 crore. AGIL acquired Artistique Ceramic last year through amalgamation scheme approved by the Gujarat High Court, and holds 70 per cent in the ceramic firm through Kediya Ceramics. "Acquisition of Crystal Ceramics

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was a strategic decision as along with the product range it also enjoyed a natural gas supply arrangement with ONGC which is significantly lower than the prevailing market price," Kamlesh Patel, Chairman and MD, Asian Granito India, said. "With this expansion, production capacity of Crystal Ceramics has reached 27,000 square meters a day. We also have the required infrastructure for future expansion at Crystal Ceramics," he added.

The new plant will be making double charged vitrified tiles in the large format of 800 X 800 mm and 1000 X 1000 mm for domestic market and exports. Post amalgamation, the total capacity of AGIL, including its subsidiaries and outsourcing, will reach 1 lakh square metres a day. On the back of rising urbanisation and growing disposable income, rural and export market have witnessed a surge in demand in recent times.

AGIL also plans to strengthen retail presence by ensuring that each and every customer has an option to go through entire range of products that we offer, the company said.

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News

NEPAL

Brick industry looks to bounce-back Brick production is regarded as one of the most polluting industries. Due to the importance of bricks in the building sector of Nepal, kilns are regarded as a necessary evil. A 2011 study by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) estimated coal consuming industries contribute eight percent of black carbon (BC) emission in Nepal and the brick industry, the second largest industry in Nepal, is responsible for most of it. The 7.8 magnitude earthquake that struck Nepal in April 2015 left the brick industry tottering, with 350 out of 800 kilns in Nepal affected and 100 damaged in the Kathmandu Valley alone. Nearly a half million buildings were completely destroyed and more than a quarter million were damaged partially. Demand for construction materials shot up as reconstruction began. The government estimated brick demand would increase nearly fourfold from the demands of 2013 and 2014. The destruction of the kilns meant supply would fall far short of pre-quake demands. Assessment of the damage to kiln chimneys and the outer and inner walls of the firing zone and almost all kilns within the valley, even those that appeared unscathed, suggested they needed major maintenance to be operational. The brick industry is energy intensive and weather-dependent business and one of the main sources of black carbon in the region. The Atmosphere Initiative of the International Centre for Integrated Mountain Development (ICIMOD) identified potential environmental risks associated with brick demand. The threat of increase in the number of brick kilns and possibilities of brick kiln owners overlooking standards in kiln design was

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considered. Another expected problem was compromise in the safety of workers. The challenges were viewed in positive light. It was regarded as a timely opportunity to encourage kiln owners to take up new environmentally sound technologies while also raising awareness about alternative building materials. With support from the Climate and Clean Air Coalition (CCAC), the initiative carried out a feasibility study of rebuilding brick kilns and enhancing their efficiency which would ultimately contribute to reduction of black carbon and other emissions. To convince entrepreneurs to rebuild structurally sound kilns, proper guidelines were necessary. ICIMOD, the Federation of Nepal Brick Industries (FNBI), MinErgy and GreenTech and Climate and Health Research Network (CHeRN), after many discussions and meetings with a team of country and regional experts, drafted guidelines in June 2015. The guidelines were presented during the Multi-stakeholder Inception Meeting on Policy and Advocacy for Reforming Brick Sector in July 2015 by FNBI, MinErgy and ICIMOD in Kathmandu. The meeting brought together people from different fieldsâ&#x20AC;&#x201D;brick entrepreneurs, government officials from regulatory offices, non-profit, international, and intergovernmental agenciesâ&#x20AC;&#x201D; to discuss existing policy and regulatory frameworks and identify gaps. It also aimed to understand available technology options and existing and future financing mechanisms which would be critical in developing improved guidelines that would be more applicable and adaptable. One of the main purposes of the meeting was to inform people from different fields of the application of guidelines for brick kiln construction. "We want people to have a stake in the guidelines so

that they are more likely to make use of them," said Bidya Banmali Pradhan, Associate Coordinator of Atmosphere Initiative at ICIMOD. Chief Guest Mahesh Basnet, Minister of Industry, and Special Guest Swarnim Wagle, National Planning Commission, were present during the meeting. Speaking on the occasion, Wagle explained the concept of 'build back better'. Focusing on possible opportunities the earthquakes brought, he emphasized that the infrastructure damaged by tremors should be reconstructed sustainably and that the focus should be on quality and efficiency of the kilns. In just five months, with inputs from local brick experts, entrepreneurs, national engineers, scientists, and external reviews from international experts, the guideline 'Design Manual for Improved Fixed Chimney ZigZag Brick Kilns' was prepared and launched in September 2015. After launching the manual, Minister Basnet said he had high hopes for the reconstruction of the kilns with better design utilizing modern technologies. "The Ministry of Industry will always seek to play a key role in the modernization of brick kilns," Basnet said. During the launch program, 20 brick kiln owners announced their intention to reconstruct their kilns using new designs from the manual. A Memorandum of Understanding (MoU) between the entrepreneurs of 12 kilns and FNBI was signed during the program. It was agreed FNBI would provide owners an engineer to assist with reconstruction, according to the manual. Ram Kaji Awale, owner of RK Brick Industry, Imadole said after his kiln was destroyed by the quake he was keen to rebuild using new technology and guidelines. "Without support from the organizations

that have come up with the guidelines, we wouldn't have been able to reconstruct the kiln," said Awale. The first five brick kilns constructed under the new guidelines baked their first batch of bricks in January 2016. Raj Kumar Lakhemaru, owner of SwetBhairab Fixed Brick Industry in Bhaktapur, who was also involved in the development of the guidelines, said the reconstructed kilns have improved the efficiency of brick production. "Although it's just been two months since we've started firing in the new kiln, the fuel consumption compared to the old kiln has been reduced by 10 to 15 percent," Lakhemaru said.

NEWS IN BRIEF After having reduced Piped Natural Gas (PNG) prices in August for tile manufacturing units in Morbi, Gujarat government on Friday brought down the PNG prices for the entire ceramic industry. The government has cut the prices by Rs2.07 per standard cubic meter or 7.1%.The prices have been revised to Rs31.86 per standard cubic meter (SCM) from existing rates of Rs. 33.93 per SCM, the government said in an official statement. The latest revision is going to translate into a benefit of Rs150 crore to ceramic units located in Morbi, Surendranagar and Thangadh regions of the state. State-run Gujarat Gas Ltd (GGL) supplies gas to 900 industrial units in these areas. Gujarat government had earlier announced a cut in PNG prices for tile makers in Morbi, India's largest ceramic industry cluster, on the Independence Day this year.

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INDIA

Nepal invited to Vibrant Ceramics expo Nepali traders have been invited to participate in an expo of ceramics and sanitary ware that is scheduled to be held in Vallab Sadan, Ahmedabad, from December 16 to 18. The organisers have also extended their invitation to architects, investors, real estate developers, and engineers specialising in manufacturing of ceramics in the event — Vibrant Ceramics Expo and Summit

2016 — that will be participated by delegates from 24 countries. Morbi Ceramics Association — association of top manufacturers of ceramics in India — has taken a lead in organising the event, which is being supported by the government of Gujarat. Anmol Modi, manager of event management company Global Network, during his visit to invite local traders said

the event aims to promote Indian ceramics. The event will provide opportunity of business-tobusiness meetings, buyers and sellers meet, technology transfer, investment in joint ventures and also knowledgesharing. Ceramics industry in India produces 680 million square metres of tiles every year and provides direct employment to

50,000 people, according to Modi. Nepal is one of the top importers of ceramic tiles from India, which in turn is the second largest ceramics exporter in the world. Nepal stands at seventh position in terms of major importers from India that includes Saudi Arabia, United Arab Emirates, Brazil, Oman and Vietnam, among others.

MIDDLE EAST

Regional slowdown forces export efforts Drastic slowdown in the construction industry in the Middle East is forcing ceramic producers in the region to explore export markets in an increasing manner. Record decline in the construction industry and stalled projects has started to reflect in the balance sheet of most of the regional ceramic producers. UAE-based RAK Ceramics registered a slump in net profit for the second quarter of 2016 amid a slowdown in construction activity in the region. Overall revenue decreased by 5.9 percent to AED757 million while net profit fell by 24.1 percent to AED65.3

million compared to Q2 last year. However, in Europe, overall sales increased by 11.1 percent compared to Q1, showing positive impact of control on improving operations, according to the company. "Despite a slowdown in construction activity in the GCC and the impact of geopolitical uncertainty in some of the regional export markets, RAK Ceramics continued to successfully deliver on its long term value creation plan in the first half of 2016," the company said. According to Abdallah Massaad, RAK Ceramics'

Group CEO, "We are focused as a group to strengthen the company's global presence by carrying out strategic global initiatives despite the ongoing challenges in our region. There are a number of encouraging signs that will support RAK Ceramics' growth and we have an ambitious plan for the group's future development." The UAE’s economy is likely to record its slowest growth since 2010 this year at about 2 percent, according to a Capital Economics bulletin published last month, while both Oxford Economics and the International Monetary Fund (IMF) revised the UAE’s growth

outlook in April, moderating real gross domestic product (GDP) growth to 2.4 percent in 2016 from 3.9 percent in 2015. Largest ceramic consuming market in the neighbourhood, Saudi Arabia is faring no better. Kingdom’s economy expanded at its slowest rate in three years during the first quarter of 2016 as low oil prices forced the government to cut spending and raise costs for industry, according to official data. The data points to a risk of growth in the world's top oil exporter slowing to near zero this year, which would be its worst performance since the global financial crisis of 2009.

SAUDI ARABIA

Creadigit for large formats at Riyadh Ceramic Riyadh Ceramic was the first ceramics business in the whole of Saudi Arabia to choose System as technological partner in digital decoration. This was in 2014 and the choice of Creadigit digital printing systems was reconfirmed in June 2016 with the signing of an agreement for the installation of three Creadigit XLE machines. The digital System machines will be implemented in continuous production flows and dedicated to the decoration of large single

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fired ceramic surfaces, and up to 1000 mm widths in unfired tiles. Technological reliability lies at the base of this decision by Riyadh Ceramic. The first example of Creadigit started up two years ago, is still in operation at the facilities of Dammam, demonstrating on site all the state-of-theart features promised by the Creadigit decoration process. On the Saudi territory, Riyadh Ceramic has proved to be an authentic pioneer in the field of decoration. The advanced technological content of the

decoration system and the graphic-technical service available via the System Saudi Arabia branch are the

values that reinforce local presence of System with increasing guarantees for the clients.

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News

IRAN

Amin Tile: a new entrant destined for greatness Sacmi Iran has completed the supply of all the plant engineering equipment for the brand new Amin Tile factory. Once running at full capacity, this plant will produce around 8 million square metres of topclass tiles a year. Located amidst the hot sands of the desert of Yazd – the city at the centre of the country’s main ceramic hub – this new company stems from the farsightedness and know-how of a group of local entrepreneurs: their aim is to make it a place of excellence in terms of technology and performance and so compete on the international high-end market. Just a few months after its start-up, the results are already excellent. The plant is

equipped with four Sacmi PH 3200 presses with inter-column clearances of 2450 mm, the perfect solution for combining productivity, efficiency and reliability in the manufacture of top-tier ceramic products. The presses work in concert with 9-metre EVA 984 vertical driers and four glazing lines, each of which is independent so that product and format changeovers can be handled more smoothly and market needs can be responded to with the utmost flexibility. Completing the order are the machines for the firing department: FMP singlechannel wide-mouthed roller kilns (126 metres long) equipped with the latest-generation heat recovery system (XTR) ensure maximum product quality

and uncompromising energy efficiency. Downstream from the kilns, high-performance, highly reliable loading and unloading machines feed – via automatic laser-guided vehicles (LGVs) – the storage and sorting lines supplied by Nuova Sima, the Sacmi Group company that designs and builds handling and end-of-line solutions. Four such solutions (Genusis and Synthesis) were supplied, each with 10 outlets, two of them specifically dedicated to handling the large sizes that are currently enjoying market popularity. These are preceded by the Advancheck system, which carries out dimensional inspection and followed by high-performance packaging machines and Extrapack palletizers.

Sacmi also supplied – via recently acquired firm Eurofilter – new-concept extraction systems to ensure the plant complies with the toughest environmental and emissions standards. A comprehensive order, then, thanks to which Amin Tile is now ready to face the challenges of a market that is high-profile and ever-more dynamic following the recent end to international sanctions. It is a future, then, in which Sacmi will play a pivotal role thanks to decades of knowhow, many years’ experience in the area, its punctual spare parts service and a unique ability to work alongside customers right from the design phase and throughout the working life of the machines and the plant.

GERMANY

Duravit impressed by Sacmi’s AVI Concept Duravit, the world leader in high-quality, designer sanitaryware, has chosen the AVI Concept, the Sacmi– developed high pressure casting system that has revolutionised sanitaryware manufacturing. The new casting cell, equipped with two AVI units and a robot, was installed and successfully started up between April and May 2016 at the company’s main facility in Hornberg, Germany, in the heart of the Black Forest. Launched on the market two years ago, AVI stands out from competitors’ solutions due to its excellent productivity and, more specifically, the revolutionary fast mould changeover system that slashes the time needed to change the mould - and thus start production of different article types – under one hour (as opposed to the several hours needed with traditional systems). It is these characteristics, together with the low maintenance requirements and AVI’s compatibility with existing moulds designed for AVM and AVE, that attracted the attention

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of this international high-quality sanitaryware brand. The new casting cell with the two AVI solutions, which joins the two Sacmi AVM units already in use at the German firm for some years now, will be used to manufacture complex 7-part WCs with stick-on rims. Now, just a few months after start-up, the customer has expressed enormous satisfaction thanks to a series of AVI Concept plus-points; these range from a machine cycle of less than 20 minutes (in practice, these two newly installed solutions allow Duravit to produce a new article every

10 minutes) to the revolutionary fast mould changeover system (which really comes to the fore in the manufacture of complex WCs as it completely eliminates long manual handling tasks that provide little added value, tasks that can, with products like these, take several hours). With the AVI Concept, all mould handling operations are managed by an anthropomorphous robot that can extract and handle all the mould parts, picking them directly from the machine. Further added value comes from AVI Concept’s compatibility with existing

moulds originally designed for the AVM and AVE; Duravit is able to make good use of this advantage thanks to the previous installation of Sacmi AVM units and the availability of an extensive mould pool. This order – placed by one of the industry’s brand leaders in terms of quality, design and manufacturing excellence – sees Sacmi reach for the future while drawing on over 30 years’ experience in the design and marketing of ceramic sanitaryware manufacturing solutions, especially as regards the development of the high pressure casting cells with which Sacmi leads the world. At the same time, this latest purchase reinforces a longstanding partnership between the Sacmi Group and Duravit; in addition to the AVI and AVM solutions already employed at the Hornberg plant Duravit has, in the past, also purchased a Sacmi AVE cell, currently installed at its French production facility, and robotized glazing solutions, the last of which was recently added to the Duravit plant in China.

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JAPAN

Noritake finds new use for grinding wheels Ceramic grinding wheels produced by Noritake Co. in Nagoya, usually used to cut or grind metal and glass, are gaining unexpected attention thanks to the increasing popularity of Japanese food in other countries. Demand for grinding wheels is expected to expand at home and abroad as more companies use them to grind soybeans to make tofu. Nagasawa Kikai Seisakusho Co., based in Kawaguchi, Saitama Prefecture, is a major maker of soybean grinding machines used to produce namago, a fluid substance made of crushed soybeans and water. In July, the company received an order for 20 new machines from a tofu manufacturer in Beijing.

The company produces roughly 200 machines annually, of which 10 percent were exported to Asia and Europe in recent years. This year, exports are set to break into the 20 percent range, the firm said. A bean grinding machine has two disk-shaped grinding wheels, one placed on top of the other to rotate and mash soybeans poured in between. According to Otofu Kobo Ishikawa, a large tofu maker in Takahama, Aichi Prefecture, the softness that makes Japanese tofu special is attributable to the homogeneity of the grind, which is difficult to achieve without using ceramic grinding wheels. “As manufacturers of Japanese-style tofu increase abroad, I believe the demand

for bean grinding machines using grinding wheels will also increase,” said Noburu Ishikawa, 53, the firm’s president. For a long time, stone mills were used to mash soybeans, but around 1958, Nagasawa Kikai Seisakusho decided to use ceramic grinding wheels made by Noritake that are stronger than stone, and combined them with a motor to build a new product. As a result, the company was able to reduce the time it takes to grind the soybeans to less than 10 percent of what it took by stone, sparking a revolutionary shift to mass production for a food that has been made for over 1,000 years. Currently, almost all domestically made bean

grinding machines use the ceramic wheels made by Noritake. Noritake started out as a manufacturer of Western-style plates, but it shifted its focus to grinding wheels as part of its contribution to the munitions industry during the war. The company quickly grew into the leading grinding wheel manufacturer in Japan, with half of its ¥100 billion in sales stemming from related businesses. Although grinding wheels for food account for less than 1 percent of Noritake’s sales, Asahi Shuzo Sake Brewing Co., which produces Kubota, the popular sake brand in Nagaoka, Niigata Prefecture, has been using Noritake’s grinding wheels to polish rice for 30 years.

INDONESIA

Pressure builds on gas prices As the government works to cut gas prices, the deadline is approaching to provide lower prices for 10 industries. The government has stated that it is looking to slash gas prices to around US$6 per million British thermal units (mmbtu) by the end of next month from the current national average of $9 per mmbtu. The new price will be available for 10 industries and one industrial zone at the beginning of next year, and is expected to help boost production. At present, only seven industries enjoy such a low price. The President has ordered his Cabinet to come up with a strategy to realize the plan, but no decision has been made until now. Coordinating Maritime Affairs Minister Luhut Pandjaitan recently suggested importing liquefied natural gas (LNG) for the western part of Indonesia to drastically cut costs. Luhut, who is also acting energy and mineral resources minister, said imported LNG from neighboring countries,

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such as Brunei Darussalam and Malaysia, cost between $3 and $4 per mmbtu, while distribution and regasification could cost an additional $4 to $5 per mmbtu. Experts and industry players seem to agree that this would be an ideal short-term solution for the pressing problem. Downstream Oil and Gas Regulatory Agency (BPH Migas) chief Andy N. Sommeng said imports were a feasible option as long as the government imported the LNG with a maximum landed price, or price at the upstream business of $4 per mmbtu. “Considering the current situation, $8 is the lowest price that we can deal with, which is why we definitely need imports. If we import [LNG] with a landed price of $4, it will lower the price for end users,” he said on Wednesday. The country has never imported LNG, although it imported 1 ton of piped natural gas from Singapore in 2014 worth $3,000, while it still has 17 unallocated cargoes of domestic LNG this year and 30 cargoes for next year. In 2015, only 60 percent

of all cargoes for the domestic market were absorbed. The government attributed high gas prices as the cause of low domestic absorption. Ryad Chairil, energy and mineral resources expert at the University of Indonesia’s (UI) technology department alumni association, agreed that imported LNG could lower costs. He suggested the government subsidize gas prices for select industries as well. Furthermore, the government could order operators of mature gas fields, such as the Offshore North West Java (ONWJ) field, to lower their prices, to compensate for the high distribution and transmission costs, which inflate the end user’s costs. “Mature gas fields have already been fully compensated by the government, meaning that they have obtained their investment returns and actually, by law, the government can claim the fields as their own,” he said, adding that it was possible to cut gas prices produced by the mature fields to $3 per mmbtu. On the contrary, it will be difficult

for the government to demand similar price cuts to operators of newer gas fields, as they have not reached a break-even point. However, cutting gas prices also has its downsides. According to a price cut simulation carried out by the Energy and Mineral Resources Ministry and Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) last week, non-tax revenues from gas can drop by $300.1 million if the gas price becomes $5 per mmbtu and can drop even further by $474.9 million if the price reaches $4 per mmbtu.

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News

International News Getting Betta by the day… South Africa

Italy

etta Ceramic Industries, arguably Africa’s most important sub-Saharan manufacturer of ceramic sanitaryware with a market share of over 50%, has once again expressed its confidence in Sacmi high pressure casting machines. This is borne out by the latest order (which has just been successfully tested and joins the many other Sacmi machines installed there over the last twenty years) is for an all-new casting cell consisting of 4 AVM machines and an anthropomorphous de-moulding robot. Key features on this new plant engineering solution include the extremely compact layout and the enormous flexibility typical of Sacmi AVM casting modules. This cell, in fact, allows the user to simultaneously produce up to 4 different models with 7-part stickon rim moulds. The design characteristics of the

individual modules, which work independently, androbotized de-moulding also allow for the installation of highly complex models and theoptimisation of casting cycles independently from the operation of other machines and, therefore, from the production load on the rest of the line. In addition to WC de-moulding, the robot is also designed to control glue distribution, any suction of water from the bottom of the U-bend and, lastly, to deliver articles to the worker for out-ofcell finishing tasks. No less than 26 Sacmi machines – not including this latest one – are already in operation in this South African firm: 13 AVE, 5 AVM, 1 AOM and 7 ALS units, the first of whuch were installed back in 1997. With this new investment decision, the Group, based in Krugersdorp near Johannesburg, has gone for steadily evolving Sacmi high pressure casting solutions that offer automation and output flexibility plus a compact, innovative layout that optimises floor space usage and maximises line production performance.

Persimmon to “self-supply” bricks United Kingdom

ne of Britain's biggest housebuilders is planning to open its own brick factory amid booming demand for new homes. Persimmon has started work on the £10million site near Doncaster in South Yorkshire where 88 million concrete bricks will be made a year – or two-thirds of the company's needs. Around 30 staff will work at the plant, which is expected to open early next year, amid fears that a brick shortage is holding back building around the country.

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Cersaie renews BolognaFiere agreement

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Persimmon unveiled its plans as it declared that business is booming after the Brexit vote. The FTSE 100 giant said sales in the ten weeks were 19 per cent ahead of last year as a strong autumn selling season followed a successful summer. 'Trading over the summer weeks immediately following the EU referendum was encouraging, with the number of customers visiting our sites remaining well ahead of last year,' said chief executive Jeff Fairburn.

ollowing negotiations lasting several weeks, BolognaFiere and Edi. Cer. spa, a subsidiary of Confindustria Ceramica, secured an agreement whereby the trade fair Cersaie, International Exhibition of Ceramic Tile and Bathroom Furnishings, will continue to be held in Bologna in future years. The agreement covers the four-year period 2017, 2018, 2019 and 2020 with an option for the following two years 2021 and 2022. Investments to upgrade the Exhibition Centre formed a key part of the agreement, as effective implementation of the investments planned by BolognaFiere are seen as crucial for a major international event like Cersaie. “The latest edition of Cersaie confirmed the strategic importance of the Bologna venue

for our international clientele, which reached a record figure of more than 50,000 out of the total attendance of 106,000,” said Vittorio Borelli, Chairman of Confindustria Ceramica. “The renewal of the contract comes at a time of constant innovation for our show and growing investments on the part of exhibitors, so the need to upgrade the Exhibition Centre is a particularly important aspect.” “With this long-term renewal of the agreement, another association representing a major Italian manufacturing sector, Confindustria Ceramica, has confirmed its trust in our trade fair management company and recognises our exhibition centre’s capability for renewal and its role as the ideal exhibition platform for major Italian industrial sectors,” said BolognaFiere Chairman Franco Boni.

Government “waste” feeds election fever Nigeria

he Alliance for Democracy (AD) governorship candidate Olusola Oke has decried the state of the abandoned multi-billion Naira Okeluse cement factory and the Ifon ceramics industry in Ose Local Government Area of Ondo State. He vowed not only to revamp the companies but make them viable for the state’s development. As AC goes to press, the governorship election was due on November 26. Oke, whose mother hailed from Imoru in Ose Local Government, bemoaned the derelict state of the factories. Addressing supporters at Ifon, Oke, said: “Isn’t it sad that this very important ceramics factory is lying in ruins? We have inundated with tall tales of billions of naira spent on the Ifon Ceramics factory by this government and up till today, what do we have? A dead factory, which ought to have employed thousands of our youths who have now turned to

riding commercial motorcycles and doing all sorts of odd jobs to survive.” Oke vowed to “turn around the fortunes of all our industries and make them functional. We shall ensure that we bring back the Ondo State of old where industries abound, where our youths were employed. We will bring in investors to partner with us in this onerous task of industrialising the state. “We are going to plug wastages, renegotiate the huge debt which the outgoing government has incurred, build all our industries and partner with investors to make Ondo State great again. “From the riverine areas of Ondo, to the hinterland of Akoko and indeed all over the state, industries hitherto built by the founding fathers of the state are in comatose and we shall resuscitate them all to make our state great again, this is our pact with the people,” he assured the cheering people.

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International News Rolling out a new facility United States

Mexico

olls-Royce has expanded into a $30 million, 62,000-square-foot Cypress, California, facility dedicated to research and development of ceramic materials for use in next-generation aircraft engine components. The company, which in May 2013 bought Hyper-Therm High-Temperature Composites in Huntington Beach, continues to invest in ceramic matrix composite technology. Marion Blakey, president and CEO of Rolls-Royce North America, said the expansion would help the company develop solutions to improve performance of future aircraft engines. The company in a statement said CMCs offer multiple advantages for high-tech industries such as aerospace and other applications with demanding thermal and mechanical requirements. “Our HTC team in California is part of a global team working on

high-temperature composites.” said Andy Greasley, executive vice president of turbines and civil aerospace. The facility will develop production-ready manufacturing processes and produce components for engine test programs. Manufacturing processes refined in the Cypress facility will be applied to a future dedicated production facility for manufacturing engine components. Since Rolls-Royce acquired Hyper-Therm, the local company has grown from 15 employees to nearly 50. The company expects to hire at least 10 more people this year with the potential for 40 more positions as production and testing of products increase. In late 2015, Rolls-Royce received tax incentives totaling nearly $735,000 for the purchase of the high-precision machinery.

Ceramic valley secures 1,000 jobs United Kingdom

ore than 1,000 jobs have been secured at Staffordshire's Ceramic Valley Enterprise Zone in the past six months, with 40 businesses expressing interest in securing space at the site. The Ceramic Valley is one of 44 enterprise zones across the country and will be officially launched today (7 October 2016). It comprises four million sq ft across six sites along the A500 corridor and has the potential to create 9,000 jobs. Abi Brown, deputy leader of Stokeon-Trent City Council and chairman of the Ceramic Valley Enterprise Zone Board, said: "We know the potential of the enterprise zone is huge, and the success in attracting businesses so far is fantastic. "This has come through really close work with developers from a very early stage to understand their needs, as well as wide spread and innovative ways of promoting the benefits that it has to offer

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– this includes at international ceramic trade shows and even advertising on a local haulage company’s trucks. "This hard work is paying off, and the interest we have received from national and international businesses is really positive. It clearly demonstrates the confidence that is growing in the local economy." Brown added that there is interest from companies at all six brownfield sites, which will be regenerated. "Current and proposed activity across the Enterprise Zone will already account for more than 1,000 jobs – with another 8,000 to come," she said. "This is great news for the local workforce and proves that businesses are recognising the benefits that investing in the area will bring." The creation of the Ceramic Valley Enterprise Zone was announced by former Chancellor George Osborne in 2015's Autumn Statement.

charming ceramic reminder of a Mexican vacation could end up giving you lead poisoning, a new study warns. Exposure to high concentrations of lead — often found in glazes that line traditional Mexican ceramics, cookware and dishware — can be toxic after extended periods of handling, Canadian researchers report. The issue has long been on the radar of public health professionals, but was highlighted recently by the lead poisoning of a 55-year-old Canadian woman. She frequently used ceramic dishware picked up in Mexico. "Every time she poured hot water into her mug, lead was seeping out of the glaze and into her tea," explained study lead author Dr. Michael Fralick. He's a general internist at the University of Toronto and a research fellow in pharmacoepidemiology at Harvard University. According to the case report, the woman had been repeatedly hospitalized for unexplained but severe abdominal pain following prolonged use of ceramics purchased in Mexico. Tests revealed that the glaze on both the inner and outer surfaces of the cookware — which she used to cook, boil water, and eat and drink from — contained 17 percent lead. As a result, her blood lead concentrations were nearly 36 times the upper limit of what is considered "normal," Fralick's team said. The researchers described the case in a recent issue of the Canadian Medical Association Journal. Aside from abdominal pain, lead poisoning caused the woman to suffer anemia, joint pain and extreme fatigue. After spotting the underlying cause of her abdominal pain, the patient and her son were told to stop using the Mexican wares. Over the course of the following three months, the poisoning symptoms cleared up. Fralick stressed that occasional

exposure to lead-laced ceramics would be unlikely to pose a problem. "Lead is toxic even in small amounts," he said, "but the most common way lead poisoning occurs is through long-term daily exposure to lead. If you were to eat a meal off a plate containing lead, it would be extremely unlikely to cause any problems — unless you were continuing to eat off this plate daily for a very long time." Most lead-tainted cookware is imported by tourists, Fralick added, because "the (commercial) importation of cookware and glassware containing lead into North America is tightly regulated." On the other hand, "it is nearly impossible to tell if a dish has lead in it just by looking at it," Fralick said, so "tourists may bring back lead-containing cookware or pottery unknowingly. This is particularly a problem for cookware from Mexico, China and other countries." Dr. Bruce Lanphear is a professor of health sciences at Simon Fraser University in Vancouver. He agreed that the issue isn't confined to Mexico. "China and other countries across Southeast Asia are often times a major source of lead contaminant, particularly in terms of paints," Lanphear said. However, "Mexico does appear to have a particular problem for ceramics, because often the glaze used has very, very high concentrations of lead — as much as 75 percent." Labeling may not be accurate, Lanphear added. "Even though some ceramics sold in Mexico will be marked 'no lead,' I would say that is not an official certification," he said. None of this means that you can't buy Mexican ceramics just to display. "If you want to purchase pottery in Mexico, that's fine," Lanphear said. "I have, and I have it displayed in my home today. I just wouldn't use it for eating."

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International News Boral cleared for Forterra j-v United States

oral Ltd has obtained merger clearance from the US Federal Trade Commission for the previously announced North American bricks joint venture with Forterra Brick. Both parties are now working towards a completion date on or before 30 November 2016. Paul Samples has been appointed

as chief executive officer of the joint venture and will report to the equally represented joint-venture board. Mr Samples has more than 30 years’ experience with Boral in the US brick industry. Boral Ltd’s chief executive officer and managing director, Mike Kane, said the bricks joint venture would allow its owners to create a more viable long-

broader cladding market through the cycle,’ said Mr Kane. ‘This is an important step in delivering Boral’s strategy in North America where we are optimizing our high fixed cost businesses and growing our more variable cost, lighter-weight building products portfolio so that Boral’s business can deliver stronger results through the cycle.’

term brick business that is better positioned to compete through the cycle. ‘We are pleased that the US regulator has granted merger clearance for the North American bricks joint venture to proceed, recognizing that the JV provides the opportunity to create a more efficient and better positioned business to compete in the

Raw Material News

GLAZE AND FRIT MAKERS CALL FOR IMPORT BOOST India // Borates The All India Ceramic Glaze and Glass Frit (Mixture) Manufacturers Association has said several sectors need boric acid for their end products or production process but because of the restrictions these industries are negatively impacted. “The government needs to relax import norms for boric acid as the current conditions are adversely impacting small and medium enterprises” the ceramics industry stated. It alleged that India has been imposing a "discriminatory" licensing regime on the import of boric acid. All India Ceramic Glaze and Glass Frit (Mixture) Manufacturers Association said several sectors need boric acid for their end products or production process but because of the restrictions these industries are negatively impacted. Easing of licencing regime and import restrictions on boric acid would help in enhancing the competitiveness of the industry and promote ease of doing business, it said. "All imports of boric acid regardless of end use require the importer to be registered and seek specific license for shipments

under the requirements of the Insecticides Act, 1968. However, domestic manufacturers of boric acid are not subjected to any procedures," it said. Besides, boric acid is the only insecticide which when imported for noninsecticidal use has EXIM (export-import) policy restrictions, it added. Indian customers who want to buy boric acid must first obtain an import permit from the Central Insecticide Board in order to import foreign boric acid, the association said in a statement. "The right to import is only given to direct end users. This greatly limits the ability of global suppliers to market boric acid in India," it added. Boric acid is utilised in a broad cross section of industries from ceramics to building materials to the steel industry. Further, it said that small manufacturers who neither have the capacity nor the ability to import on their own are compelled to purchase expensive domestic boric acid rendering them uncompetitive in the market. During the recent visit of the United States Trade Representative, the issue was discussed with the commerce ministry officials.

EXPANSION PLANS AT KAOLIN Bulgaria // Kaolin Kaolin, the wholly-owned Bulgarian subsidiary of Germany’s Quarzwerke GmbH, plans to invest 100 million levs ($55.63 million/51.09 million euro) in the next 5 years in a new processing plant and an upgrade of three existing ones. The investment will enable the manufacturing of new products alongside the current product range, stated the company in a recent release.

The new kaolin and silica sand processing plant will be located in the region of Dulovo, in northeastern Bulgaria. Three other plants, located in the towns of Senovo, Vetovo and Kaolinovo, will undergo modernization works. Kaolin is a mineral extracting and processing company, which offers a number of products, including kaolin, feldspar, limestone, silica sand and others.

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News

Egypt: a springboard for China?

asian ceramics

ore Chinese companies are setting up shop in Egypt or expanding existing operations there to take advantage of opportunities presented by the Belt and Road Initiative, as well as the nation's prime location and rich resources, ex-ecutives said. While such a move helps Chinese firms cut costs, due in part to preferential trade policies offered to Egypt in Eu-rope, the Middle East and sub-Saharan Africa, it also contributes to Egypt's industrialization and creates jobs. Jushi Group, a Chinese fiberglass manufacturer, set up a local subsidiary, Jushi Egypt, in January 2012. Located in the ChinaEgypt Suez Economic and Trade Cooperation Zone, the company has an annual output capacity of 80,000 metric tons. The plant cost $223 million. According to Yang Jixiang, deputy general manager, the subsidiary exported 95 percent of its productsďź? valued at about $84 millionďź?in 2015 and paid about 135 million Egyptian pounds ($17.1 million) in local taxes. He said the operation has driven the development of downstream and upstream industries in Egyptian fiber-glass. "Two Chinese companies have started businesses in the economic zone to supply us with materials, while an Egyptian factory has upgraded its technology and in-creased the number of mills it operates from one to four to meet our need for kaolin powder, a raw material in fiber-glass." The company is building a new assembly line, also with an output capacity of 80,000 tons, which will go into ser-vice in June. Jushi Egypt employs about 1,100 Egyptians, who make up 40 percent of its mid-level executives, and 60 Chinese. Yang said the Chinese contingent will not be increased to handle the extra capacity. He explained that the company chose to set up a base in Egypt because of the country's location and the preferen-tial trade policies it enjoys in other markets. "If you export fiberglass to Europe from China, you have to pay anti-dumping and anti-subsidy duties of 24.8

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percent, not to mention the tariff. There is no tariff if you export to Europe or the Middle East from Egypt, nor any anti-dumping and anti-subsidy duties." Also, it takes at least a month to ship goods from China to Europe, but from Egypt it takes only a week, and a con-tainer could arrive in Turkey in just two days, he said. Egypt is rich in human and natural resources, too. "Engi-neers in Egypt are well-educated," he added. In early 2013, Muyang Co Ltd, China's largest feed ma-chinery manufacturer in terms of revenue, also teamed up with the China-Africa Development Fund to establish Muyang Egypt in the ChinaEgypt Suez Economic and Trade Cooperation Zone. Together, they made an invest-ment of $74 million. The first phase of the project went into operation in De-cember. Annually, Muyang Egypt aims to produce 5 million tons of silo storage units, 6,000 tons of steel structures and 50 units of feed machines, a combined sales value of $150 million. Li Xiangdong, manager of Muyang Egypt, said the factory is in answer to the Belt and Road Initiative, which is an ambitious strategy aimed at better connecting Asia, Eu-rope, the Middle East and Africa through infrastructure pro-jects. "The Chinese government's preferential policies have pro-vided us with a very good investment environment," he said, adding that the Egyptian subsidiary's products can easily be shipped to markets in the Middle East and Africa via the Gulf of Suez, while cheap labor costs had reduced overheads. Muyang Egypt will initially concentrate on making silos that reduce the risk of food wastage during storage and transportation, a common problem in Africa, Li said. In addition to producing storage units for African govern-ments, the company will also make silos that can hold up to 100 tons for African farmers to securely store their har-vests. Brilliance Auto Group, a Chinese carmaker, has an-nounced plans to restart its assembly line in Egypt this year. The facility ran from 2006 until it was suspended in 2009. The move is part of efforts to

expand into other North Afri-can markets and further south. Egypt has the highest per capital GDP in Africa, and its auto market is larger than that of many nations on the continent. The company has continued selling its cars in Egypt, and has sold about 30,000 since 2009, mostly imports from China, said Zhang Xuecheng, managing director of Bril-liance Bavarian Auto, a joint venture of Brilliance and Ba-varian Auto Group. The Egypt facility's output capacity will initially be 10,000, increasing to 30,000 in five to 10 years, he says, adding that, as spare parts are limited in Egypt, the company also plans to bring some suppliers to the country to reduce costs. Zhang said the decision to restart the assembly line was made based on two years of market research and because Egypt is an important part of the Belt and Road Initiative. Guangzhou Dayun Motorcycle Co Ltd purchased 200,000 square meters in the Suez Economic and Trade Coopera-tion Zone on Dec 3, said Shao Yuebo, head of product re-search and development at TEDA SEZone Development Co, which runs the zone. The Chinese company will invest $78 million to build a plant that can make 500,000 bikes a year, he said. "The project will provide more than 600 jobs, stimulate devel-opment of the motorcycle supply chain, contribute tax rev-enue and promote industrial technology in Egypt." China Glass Holdings Ltd is also considering investing $20 million in the zone. The project would create 400 jobs directly and 2,000 indirectly, and generate $70 million a year in foreign exchange through exports, Shao said. If it goes ahead, the plant "will promote upstream and downstream industries (in the glass industry) such as min-ing, energy, hydroelectricity, logistics and glass pro-cessing," he said. However, Chinese companies face challenges in Egypt. Although the North African nation has promised rebates for exporters, it is not easy to get them. Jushi Egypt, for exam-ple, has only managed to get rebates on two deals, receiv-ing about 70,000 Egyptian pounds, Yang said.

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Smart, robotized, 3D: Sanitaryware 4.0, the Sacmi way Simultaneously with the start of the Tecnargilla fair in Rimini, a special day dedicated to the world of sanitary ceramics was held at Sacmi Imola. Over 140 customers from five continents enjoyed the opportunity to see live demos of the latest Group-developed technological and plant engineering innovations, highlighting a strong commitment to automation, flexibility and process digitilization. “What drives us?” What guides us, then, on the way towards the future of ceramic sanitaryware? This was the theme of a very special day. On 26 September 2016 simultaneously with the start of the international Tecnargilla fair in Rimini - over 140 client company managers and representatives from 40 countries visited both the factory and the research facility at Imola to find out more about the latest Groupdeveloped sanitaryware industry solutions. “Events such as these are essential”, stated Daniele Coralli, the Division’s General Manager, “as they let customers see the machines in action and fully appreciate the importance of new features and technical characteristics. They also promote networking between top-flight international companies, allowing for comparison and a heightened understanding of the latest developments in technology, plant engineering and market trends”. Robotics, the final frontier A leading protagonist at Tecnargilla in Rimini with cutting-edge solutions that explore the new frontier of collaborative robotics, Sacmi decided to show international customers the significant improvements made to the AVI high pressure casting cell; this was previewed at the last edition of the Rimini fair and this time was showcased with a major process automation upgrade. The latest version of the casting module - designed to handle WCs with stick-on rims using moulds with between 4 and 7 parts - requires, in fact, no worker intervention. All casting, mould handling and mould replacement tasks are performed by anthropomorphic robots, with changeover times now cut to under 15 minutes, with the user able to manage two distinct casting modules in parallel with just one robot. In essence, this solution is the best response to the sanitaryware market’s natural

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need for flexibility: in every instance, the changeover time is shorter than the cycle time, thus eliminating downtimes, boosting process repeatability and quality and making work easier (the operator never has to physically enter the casting cell as all casting and mould changeover tasks can be conveniently managed via the user-friendly interface). “Automation in sanitaryware”, explains Daniele Coralli, “is a dual frontier. On the one hand, Sacmi has developed evermore advanced integrated production centres in which the robot plays a pivotal role, handling every aspect of production, eliminating any need for manual intervention, raising product quality and, last but not least, improving workplace safety. On the other, Sacmi is exploring the new frontier of collaborative robotics in which robots work should-to-shoulder with personnel, ‘borrowing’ solutions already used extensively in other sectors such as the automotive industry”. One of these - which participants at the special day in Imola later had the opportunity to see in action during the Rimini-held Tecnargilla fair - was recently included in the Sacmi Sanitaryware Division’s plant engineering range. Equipped with cutting-edge safety systems, the robot that Sacmi uses for sanitaryware applications is built by the industryleading multinational Fanuc and is designed to help workers handle the fired pieces to be inspected. Thanks to its outstanding ability to work alongside people, the robot can dynamically control all product handling, eliminating repetitive, tiring or awkward tasks and thus bringing the industry into line with the latest European directives on ergonomics in the workplace. Large sinks and console washbasins, Sacmi presents the new ADI Something entirely new for 2016 that visitors to Sacmi Imola had the opportunity to see first-hand during their morning factory visit was

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SPECIAL REPORT

the new ADI casting cell, designed to cast sinks and large console washbasins. With this unit the robot controls all the casting and mould opening/clamping tasks while mould replacement is handled by two workers in under 15 minutes (in complete safety and with the aid of a simple forklift), an approach dictated by the high weight of the moulds, sometimes heavier than 1,000 kg each. This solution offers outstanding flexibility as it is compatible with existing moulds already produced by Sacmi for the established ALS, ADS and ADM units. As with the AVI cell, mould replacement tasks – while requiring some manual intervention - can be completed in a time less than or equal to that of the production cycle, with a single robot able to handle up to three different casting modules; alternatively the integrated casting centre can, on request, be equipped with a latest-generation Sacmi pre-dryer (FPV or FPL depending on whether mono or multi-mould cells are used) capable of reducing residual moisture by up to 35% and thus providing pieces already mature enough to be transported and placed on carts before they’re sent on for final drying and firing. Elegant designer washbasins - manufactured ‘live’ for visitors inside the same robotized casting centre - are, then, the result of the innovative ALV, a solution specially designed to produce such items, which need to be cast horizontally. In this case the ALV module which also has changeover times lower than actual casting times - was coupled with the ADI but can, in principle, be configured in the robotized casting centre any way producers see fit. Modelling and 3D scanning for total process digitalization At Sacmi (which, in over 30 years of doing business in the industry has developed and marketed some 30 complete plants, 280 WC casting systems, 170 washbasin and shower tray casting systems, 51 driers, 1,040 robotized glazing solutions plus 375 kilns and 6,228 moulds, all over the globe), 2016 marks the beginning, via advanced product and mould design solutions, of 3D digital modelling. This, then, was the common thread running through the various solutions shown to visitors during the special visit to the sanitaryware R&D lab: from digitilization of the designer’s preliminary drawing (followed by perfect digital reproduction of the piece, then physical prototyping using a 3D printer) to advanced mould design software. The mould - usually finished on site can be refined further via a real-time, error-free scanning solution that records, to an accuracy of one thousandth of a millimetre, all the modifications that will then be replicated on the die. All-new GAS (glaze application scanning) technology is taking us in a similar direction: this advanced software makes the glaze spraying cone both visible and measurable, simulating all process parameters and allowing further reduction of overspray. It also provides feedback control of line operation (via real-time interception of any changes in glaze rheology, glaze nozzle clogging etc.).

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Robotized glazing, the present speaks smart GAS is only the latest new product in a sector - Sacmi-brand robotized sanitaryware glazing – that saw, in 2016, the extraordinary success of the new GDA 80 (Gaiotto Diaphragm Automatic Gun) needleless glazing gun. The latter has become extremely popular on the market (a good 110 solutions have recently been supplied) as it eliminates the need for maintenance while simultaneously boosting quality and process repeatability. Alongside this, Sacmi has gone a stage further with robotized glazing solutions (implemented on the latest Gaiotto GA-OL robot series) by introducing, as early as 2014, a new ‘smart’ software release for off-line robot programming: this feature revolutionises the way the production process is conceived as it allows the operator to program glazing recipes in advance on the PC - thus modelling gun trajectories and setting all the spraying parameters - and eliminate the downtimes that stem from the need to reprogramme the robot during size changeovers. Once executed, the programme can, in fact, be simulated and optimised without having to intervene directly on the line; programs executed in self-learning mode can also be imported to modify and optimise them. “Zero downtimes”, quality and energy for the industry: this is Sanitaryware 4.0 This, then, is how Sacmi (which during the second part of that special day on 26 September took clients on a guided tour of another example of regional excellence, the Lamborghini factory in Sant’Agata Bolognese) is developing and, indeed, putting into practice Industry 4.0 principles within the sanitaryware industry. Automation, improved worker skill sets, digitilization and quality control capable of acting retroactively on the process are all being used alongside new consumption optimisation systems. And that means all consumption: in terms of energy (30% lower overall), of course, but also in terms of wasted time (slashed by over 65% thanks to elimination of the downtimes associated with synchronization of casting and mould changeover and reduced storage and handling requirements thanks to utilisation of advanced predryers etc.); lastly, compared to traditional solutions, processing residues are 25% lower, offering direct advantages in terms of process efficiency and lower disposal costs. Sacmi also sees Sanitaryware 4.0 - and has done for several years as the development and provision of advanced aftersales services, supplied via its worldwide sales and spare parts network. That same goal is also, and above all, achieved via the cutting-edge remote support software installed on the machines; this allows customers, wherever they may be in the world, to count on the real-time support of specialised Sacmi technicians to fix all the most common problems. Sacmi, in fact, provides customers with customised solutions right from the design stage and carries on providing close support throughout the working life of machine and plant.

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asian ceramics

Analysis: Heavy Clay

A brighter tomorrow

North African brick makers seek solid foundations

our and half years since the start of the Arab Spring, the North African region is still gripped by political instability. Barring Libya, the worst affected country in the region, which is continuing to experience unrest the other countries are seeing a gradual return to normality. According to a recent World Bank report, Morocco, which is expected to clocked up 4.6% growth in 2015, the highest of all the North African countries, followed by Algeria (+3.3%) and Tunisia (+2.7%). Although, Libya also saw a growth (+4.3%), but this follows sharp falls over the two-year period 2013-2014 (-13.7% and -21.8% respectively). The Arab Spring of 2011 brought great consternation in the heavy clay industry of the region, with a series of major political changes set off by Tunisia’s ousting of Ben Ali in early January 2011. Uprisings quickly spread to neighboring countries, with regime changes also in Egypt and Libya. Despite the rapid progress in this region, with an average annual five percent GDP growth rate over the past decade, the unrest of 2011 brought a sudden decline in the heavy clay segment for close to two years. Despite the difficult political situation in some of the countries in the region, currently heavy clay industry in the North African countries is going through one of its best periods in recent history. The ongoing boom in domestic consumption and exports in all the four markets, is contributing to lively investment, building of new plants and the modernization of existing plants in the heavy clay segment. In last few years, North African countries have entered in the throes of a housing crisis as demand for decent housing far outstrips supply. This situation is as a result of a burgeoning population which has been exacerbated by a high migration of the population to urban centers. The result of the combined influences of a ballooning population,

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housing deficit and rapid urbanization has created an enviable situation for region’s heavy clay industry. While performances have varied considerably from country to country, the overall trend in the construction sector and resultantly in the heavy clay sector appears encouraging, driven mainly by investments in modernisation and expansion of infrastructure (roads, ports and airports) and considerable improvement in housing segment in the respective countries. Estimates suggest that by 2050 North African population will increase by 1.7 times from the current levels, which will stretch the cities to beyond breaking point due to inadequate housing and associated infrastructure needs necessitating a huge demand of heavy clay products in the coming years. A general trend worth noting in the North African heavy clay industry is the increasing demand for increasingly sophisticated and complex products. It is a trend that is propelling technology producers from Europe to supply of advanced technology plants in these markets. Currently, in international comparison the heavy clay industry in the region cannot be regarded as very competitive in terms of technology as the product quality in particular must be improved considerably.

Arab Spring Crisis

The shock to the economies of the political events unfolding in North Africa affected the economy and heavy clay industry negatively. Though, Algeria and Moroccan heavy clay industry was not affected much but exports from these countries plummeted. Tunisia had negative growth of around one percent. In Libya, civil war brought oil production to a standstill and the economy contracted by a massive 41.8 percent. In 2012, governments of the region focused on preserving stability

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Analysis: Heavy Clay

and making rapid progress toward social and economic inclusion. Public interventions that will alleviate the civil unrest that have resulted from precarious living conditions and limited economic opportunity have been prioritised. In a region where home ownership is culturally very important, these programmes necessarily have brought employment and housing to the forefront of the political agenda have led to steady growth of heavy clay industry.

Expansion – The Keyword

Last three years have seen a number of new projects and ambitious expansion by key heavy clay producers in the region. Increased demand, change in product demand ( demand of better performing hollow bricks) and need for higher quality products have been the prime reasons for these expansions and modernization exercises. Leading Algerian ceramic conglomerate SARL S.A.F.CER group (Société Algérienne de Fabrication des carreaux Céramiques et produits rouges) carried out a major expansion exercise earlier this year. With the latest capacity expansion in June the company has an annual production capacity of 630,000 tons/ annum. Prior to the expansion, the company had an installed capacity of 210,000 tons. The expansion involved a total investment of around 20 million. The company claims that its new facility will establish SARL S.A.F.CER as the leading producer not just in Algeria but in the whole of Africa. According to Ammar Seklouli, CEO of the company, “Almost our entire output consists of two sizes of hollow bricks: 100x200x300 mm and 150x200x300 mm. One distinctive characteristic of S.A.F.CER is that these sizes are produced with the holes at the four corners broken into two triangles.” He further says, “We sell our entire output on the domestic market,

although demand far outstrips supply as construction firms in Algeria tend to use these two sizes almost exclusively. In addition to these two sizes, we also produce semi-solid bricks and floor blocks.” Originally set up in 1987 as a ceramic floor and wall tile producer, the SARL S.A.F.CER group ventured in brick making in 2005 has two facilities located in the cities of Sétif and Constantine. The company is renowned for its high-quality products sold in both the domestic and international markets. Leading brick producer, BNK Group of Algeria is also undergoing a major expansion exercise at its facility located in El-Hoceinia, Wilaya Aïn Defla.. This would be second brick production line for the company. The new factory will produce perforated bricks and ceiling blocks with a production capacity of 210 000 t/year and commence operations in Vovember 2016. IMJ plant in Fesdis, Algeria, has expanded its capacity to produces 100,000 tonnes of eight-hole hollow bricks, primarily used in constructing partition walls, and 12-hole hollow bricks used in erecting exterior walls. Argibordj, a company of the Guerrouache Group, has constructed a new brick plant in Algeria in 2015. Located on the Algerian highlands in the Bordj Bou Arreridj region, the project is one of the biggest production line in the entire Maghreb region. It integrates state-of-the-art technologies developed by French heavy clay technology supplier, Cleia. With its high output and flexibility, this plant has been designed to optimally respond to the needs of the domestic market through a wide range of products. Components of this plant include a 13-m-wide rapid dryer and an airtight 200-m-long tunnel kiln made of refractory elements with suspended ceiling.

Construction material choice in North Africa Algeria Construction Material

Tunisia

Morocco

Libya

Urban

Rural

Urban

Rural

Urban

Rural

Urban

Rural

Reinforced Concrete

Reinforced/ Confined Masonry

Brick Masonry

Stone Block Masonry

Adobe Mud Walls

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AC 16-9

asian ceramics

Analysis: Heavy Clay

Major brick producers in Algeria

Installed Capacity of heavy clay industries in North African Countries 2010

2011

2012

2013

2014

2015

Algeria

13.9

14.1

15.4

16.6

18.1

19.6

Morocco

11.7

12.0

12.1

12.8

13.4

14.2

Tunisia

5.4

5.7

6.1

6.5

6.9

7.2

Libya

3.6

3.4

3.5

3.9

4.3

4.7

Total

34.6

35.2

37.1

39.8

42.7

45.7

All units in Million Tons

A couple of years back Briqueterie Boughzala, one of the oldest brick manufacturers in Tunisia carried out a major expansion that lasted for three years. The company expanded its capacity to 500 tonnes of B12 bricks per day. The new facility includes a 142 meters long kiln and a rapid dryer of 64 balancelles loaded with two rows of bricks by the improved cutter and loading equipment.

Algeria

Located strategically in an important region, Algeria is the largest heavy clay market in the North African region. Algeria is not only the largest country in the North Africa, rather in the whole African continent. But a geographic edge is not the only advantage for Algerian heavy clay industry. Since the country has put the modernization of its infrastructure at the top of its agenda, heavy clay producers have more than one reason to celebrate. Heavy clay industry in Algeria has beniffited from rising urbanization levels in recent years. Actually, after being a country with a large predominance of rural population during the early years of independence (69%), Algeria has gradually reduced its urban deficit to an estimated urbanization rate of 70%. Access to decent housing has always been one of the government priorities. During the period of 2008-2015, about 2.3 million housing units have been constructed, which has improved the Housing Occupancy Rate (TOL), which increased from5.51 inhabitants / housing in 2000 to 4.89 inhabitants /housing in 2010and 4.5 inhabitants /housing in 2015. Currently catered by about 220 brick making units, the country’s brick industry is expected to produce about 21 million tons of heavy clay products in the current year. With about 40 modern brick making plants, which run on the modern technology, the country’s heavy clay industry has made significant progress on the range of high quality products. While the country’s past has at times been turbulent, the last decade has been one of relative peace, which has seen a steady growth of heavy clay industry in the country. Country’s construction sector remains buoyant despite the impact of the significant drop in global oil prices, with the government continuing its support for the main social programmes and infrastructure projects as a means of diversifying the economy. A new five-year investment plan for the period 201519 worth €233.7bn was approved by the government in late 2014 to build upon the infrastructure facilities, which has been the key driver of expansion of heavy clay industry of the country. Over the last decade Algeria has registered significant growth in its heavy clay sector, which reached close to 10% in 2014 and 2015. The positive development in the construction industry with thousands of new homes being built can be attributed to investment by the government as well as private sector. The consequently much higher

asian ceramics

AC 16-9

Company

Location

Country

Touggourt

Algeria

Guerrouache in Medjana

Ouargla

Algeria

Sarl Edhaia Brickworks

Souf

Algeria

Sarl Briqueterie

Souf

Algeria

El Hocenia

Algeria

Alb Amouri Laroussi Briquetterie

Biskra

Algeria

Amouri El Hadjeb

Biskra

Algeria

Amouri Poterie

Biskra

Algeria

DBK Mat

Tizi Ozou

Algeria

FACMACO

Laghouat

Algeria

Grande Briq Des Oasis

Touggourt

Algeria

Sarl Gipar Briqueterie

Arreridj

Algeria

Boughzoul

Algeria

Sarl SZT Zibans Travaux

Biskra

Algeria

Sarl Eloutaya

Biskra

Algeria

Sarl Briqueterie Amouria

Djmaa

Algeria

Sarl Bal Briquterie Amouri

Laghuat

Algeria

Sarl Sheary Eloutaya

Eloutaya

Algeria

Sarl Bridj 1 and 2 plants

Delfa

Algeria

Sarl Amouri Brique

Delfa

Algeria

SOAB ( Groupe Tedjini )

BNK Group

Sotbaf

Algeria Baraki Brick Factory Location- Algiers Products-Hollow and Solid Bricks Markets- Domestic and Export Markets Others- Subsidiary of Trust Industries of the Trust Bank Group Baraki Brick Factory is one of the most modern brick producing plant in the country. As one of the first projects in Algeria, the factory uses robots in the production line, both for the setting and unloading of the products. In 2014, the company carried out a modernisation exercise and increased its capacity by 100 %. SOBRIS BMSD Group Location- Oran Products- Hollow and Solid Bricks Markets – Domestic & Export Markets Others- SOBRIS BMSD Group is a renowned brick manufacturer and enterprising industrial Group operating in the brick industry and several other sectors. The company operates three brick production plants ( Eurl Sobris Brickyard, Sarl Brickyard Saida and Eurl BB Brickyard ) with a combimed installed capacity of 900,000 tons of heavy clay products per year. The company is currently undergoing a major revamping exercise. It has ordered a complete turnkey brick manufacturing plant from one of the leading Italian technology providers.

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Analysis: Heavy Clay

demand for clay bricks has also led to investment in brick factories. Even if many investors had no previous experience in this sector, as the potential profits in heavy clay sector is relatively high compared to other industries. The region around Toughourt is one of the most important areas for the production of bricks in Algeria, although the bricks have to travel 800 km to Algiers where the most construction takes place. Yet, availablity of clay and infrastructure in and around Toughourt makes it one of the best locations in the country for brick production. According to Amouri Toufik, General Manager of the leading brick producer in Algeria, Amouri Laghouat Group, “Younger generations are growing up accustomed to a level of prosperity that until a few decades ago was simply unimaginable. This means that sooner or later the type of houses being built and products used to build them will change. The brick sector can look forward to a long and bright future in the country.” His company, Amouri Laghouat Group is based in the city of Laghouat. The city is home to the two brickworks, Sarl BAL and Sarl FACMACO, each with double production lines. The group plans to add two more brick production lines in coming years to augment its installed capacity. "To us Algeria has become one of the most important markets of the past few years, " according to Dieter Kamp, Area Sales Manager at Handle, aleading technology supplier to the heavy clay industry. Handle serves its Algerian customers with its own representation in Algiers. The company claims that it is serving the country’s heavy clay industry since 1949. The company has six processing lines in the North African country, each in different implementation phases. In addition, more and more individual machines are being developed, which are helping its customers improve the quality of their products. Kamp further says, “Since the brick market is currently saturated, the industry is focusing more and more on improving quality through the exchange of key machines in processing.”

Morocco Briqueterie Slaoui Location- Sale Products- Hollow and Solid bricks Markets- Primarily domestic Moroccon market. Others- Located at Sale Briqueterie Slaoui can currently produce 600 t clay blocks per day. The company undertook a major expansion exercise in 2012 to enable it to produce hollow bricks, which are becoming more and more popular in Morocco.

Leading brick producers in Morocco Company

Location

Country

Bab Mansour

Hamrya

Morocco

Briqueterie Tamouda

Tetouan

Morocco

Centerbrique

Tanger

Morocco

Ceramica Yebala

Tetouan

Morocco

RM Briques & Ceramiques

Tanger

Morocco

Sale

Morocco

Tetouan

Morocco

Briqueterie Slaoui Rayanbriquetterie Casablanca

BY 2050 NORTH AFRICAN POPULATION WILL INCREASE BY 1.7 TIMES FROM THE CURRENT LEVELS

Morocco

Moroccan demographics are very encouraging for heavy clay producers in the country. The country has a youthful population, with some 49 % under the age of 25. Though, the population growth rate has slowed from a 2,4% high in the 1980s to 1.4% in 2015. Similar to its neighbors, Algeria and Tunisia, Morocco has a high urban population, with 61% of Moroccans living in urban areas provides ample future opportunities for heavy clay producers. Morocco’s annual population growth implies addition every year leading to a requirement of about 110 000 housing units per year, which is prime demand driver for heavy clay industry in the country. In addition to this, the updated data analysis provided by the last census indicates that the deficit in urban housing is estimated at 1 million. Currently, catered by 130 brick making units in mid and small scale, Moroccan heavy clay industry is undergoing technology transition in a big way in recent years, with major producers going for capital intensive state of the art production plants. Tetouan, an industrial area with more than 32 brick factories has the maximum concentration of brick producing units in the country. Between early 2010 to 2014, a number of Moroccon brick producers underwent capacity and capablity expansion. Chief among them were RM Briques at Tanger with a capacity of 600 TPD , Briqueterie Tamouda at Tetuan with a capacity of 500 TPD , Briqueterie Bab Mansour ay Meknes with a capacity of 600 TPD and Rayanbriquetterie Casablanca at Tetuan with a capacity of 70 t/h.

asian ceramics

AC 16-9

Major brick producers in Tunisia Company

Location

Country

BCM Briqueterie Ducentre

Teboulba

Tunisia

BMB- La Brique Moderne

Beni Khair

Tunisia

Kalaa Sghira

Tunisia

Teboulba

Tunisia

Nabel

Tunisia

Jemmel Khiareddine

Tunisia

Tunis

Tunisia

Teboulka

Tunisia

Nabel

Tunisia

Menzel Harab

Tunisia

Le Kef

Tunisia

INM Industrie Nouvelles Briques

El Khsour

Tunisia

BFS Briqueterieel Fauz Du Sud

Agareb

Tunisa

Briqueterie BKS Briqueterie El Moustakabal Briqueterie Giurass Albedkader Briqueterie Lahmar & CIE CMI El Moustakabel Novabrique SCI Ceramique Industrique Skepot

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World of Technology

16 - 19 March 2017

Jakarta Convention Center - Indonesia

Keramika 2017 will feature over 100 exhibitors covering the entire manufacturing of the ceramic industry from technology, supplies, materials and coverings to over 10,000 ceramic industry professionals in ASEAN.

www.keramika.co.id Co-organised by :

Book your booth now Mr. Steven Chwee

Ms. Phua Meenyi

Project Director

International Sales

steven.chwee@reedpanorama.com

meenyi.phua@reedexpo.com.sg | +65 6780 4537

Mr. Marzuki Herry

Ms. Kartina

marzuki.herry@reedpanorama.com

kartina.lydiawati@reedpanorama.com | +62 21 2556 5016

Project Manager

Marketing enquiries, publicity & media requests & partnership

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Analysis: Heavy Clay

Tunisia

Heavy clay industry in Tunisia has reaped rich dividends on the back of Government’s initiatives in reducing the proportion of its population living under the poverty line, improving the lives of the country’s urban dwellers through access to water and sanitation, electricity, and in reducing the percentage of slum population, as well as the number of slum dwellers in absolute terms, while succeeding to increase the quality and quantity of the country’s housing stock. Fired-bricks are extensively used in housing construction at all levels, from modest self built house extensions to infill walls in sophisticated reinforced concrete frame construction. The most popular type of fired brick is the hollow extruded brick block, which weighs little, is relatively cheap, and maintains good insulating properties. Currently there are 75 brickworks in operation in Tunisia , which produced over 8 million tonnes of bricks in the year 2015, with an average capacity utilization of around 74%. Traditional solid bricks make up around 18 % of the market, vertically perforated bricks with two or three rows of equally sized perforations makes more than 60 % of the total market, while products for floors and rest accounts for the rest 22 % of the products.

Tunisia BCM Briqueterie Ducentre Location- Teboulba Products- Hollow Bricks and Slabs Markets- Primarily Domestic Others- A subsidiary of Groupe Nakbi, BCM Briqueterie Ducentre is one of the largest brick producing companies in Tunisia. Nakbi Group is a group of companies operating in the industrial sector in areas such as brick production, weaving fishing nets and rope, marine equipment, twisting etc. It consists of five company: BCM Brickyard, Sotufild, Sotufed, SMET , Synttefil and Kinda. With an installed capacity of 800,000 tons of heavy clay products from its two state of the art plants, the company is nkown for quality of its products in the domestic market. Briqueterie El Moustakabal Location- Teboulba Products- Hollow Bricks Markets- Domestic & export markets Others- Briqueterie El Moustakabal is counted among one of the most advanced brick producers in Tunisia. The company has spent a significant amount towards acquiring state of the art technology from best of the equipment producers in the industry. Company’s two production facilities has a cumulaticve installed capacity of 600,000 tons of hollow bricks.

Leading brick producers in Libya Company Tatweer

Location

Country

Al Ghanam

Libya

ETC

Libya

Among the four North African countries, evaluated in this article, Libyan heavy clay industry has suffered most heavily in past few years. Years 2011, 2012 and 2013 were of course nightmarish for the country’s heavy clay producers, as well as the nation in general. However, the situation improved significantly from year 2014. Some of the major producers emarked on revamping their operations . Major brick producer, Surman Brickworks carried out a major expansion in 2015. The company’s production facility located in the city of Surman, around 70 km west of Tripoli is designed for the production of 600 t/day hollow and ceiling blocks. Another leading producer, Al Kalaa modernised its manufacturing facility in 2014. The company revamped its entire line with the state of the art technology from Europian suppliers. Currently catered by 55 mid and small scale brick producers, country’s heavy clay industry and market are getting ready for steady growth in coming years. Mohmad Fateh, General Manager of Al Sarh Brickworks says in a communication, “The structure of the brick market in Libya has changed to a great extent in recent years, with products aimed at mid to high-end consumer categories losing share to cheaper materials. With the political and economic situation improving, the brick sector is sure to pick up again fuelled by the severe housing shortage and the need to remodel existing buildings. “ He further says, “The decline in sales volumes means we’re facing fierce competition in terms of prices, especially in the facing brick segment. Profit margins have also been squeezed due to inflation, increase in raw materials and energy costs.”

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AC 16-9

Libya

Al Sarh Brickworks

Zliten

Libya

Sabo

Sebha

Libya

Garian Plant

Garian

Libya

Almachrek Brick Company

Tripoli

Libya

Surman Brickworks

Surman

Libya

Al Kalaa Brickworks

Garian

Libya

Libya Almacherk Brick Company Location- Tripoli Products- Hollow Bricks Markets- Domestic and Export markets. Others- A subsidiary of Sahi Group Holding, Almacherk Brick Company operates a 800 TPD holoow brick production plant near Tripoli. Supplied by French company, Cleia, the state of the art brick production plant is dedicated to the production of hollow bricks. Surman Company Location- Surman Products- Hollow Bricks and Ceiling Blocks Markets- Primarily Domestic Others- Located 70 Kms away ( on the Western side) from Tripoli in the town of Surman, the company has an installed capacity of 600 TPD of heavy clay products. The company, which is under the process of streamlining of its operations has focused on the Tripoli’s construction market.

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Analysis: Sanitaryware

Vietnam bounces back

Jahir Ahmed reviews how a process of investment and innovation is restoring order and raising hope of a brighter booming future.

ietnamâ&#x20AC;&#x2122;s long expected recovery of growth in the housing and construction industry that appears to have pushed ahead consumption will stay, although, the real estate and property markets still look for a boost to pick up the ceramic sanitaryware sector, said the industry insiders. Sources in the industry are hopefully observing the increasing demand of other basic building materials, including cement that witness a substantial rise in sales volume this year. There are strong indications of rise in consumption of sanitaryware materials, as local outputs are catering more domestic demand than exports, while the imports are also rising providing opportunities for better outlook in the coming quarters and years following a steady growth of the economy that impacts on construction and housing starts in the country with a large population of 95 million. Last year, there was a significant upturn in sales of high-end apartments all over Vietnam. Such apartments consume luxury saniarywares and bathroom fixtures, according to a source in 3 million pieces of sanitaryware a year capacity LIXIL Vietnam, the leading Japanese LIXIL Group owned operator that manufactures both the bathroom equipments and fittings in its several units, including LIXIL INAX Vietnam Co Ltd, American Standard Vietnam Co Ltd and GROHE Vietnam Co. The improvement came following rebound of the economic growth at higher scale. Vietnam has set goals for GDP to grow by 6.5-7 percent and inflation to be kept at around 5-7 percent in the next five years, 2016-2020, the expansion is up from the average below six percent (lowest 5.03 in 2012 to highest 5.98 percent in 2014) of the

asian ceramics

AC 16-9

past five years. Vietnam expects to attain 6-7 percent GDP growth in 2016, the Ministry of Planning and Investment of Vietnam said. The economy would fully end recession and enter a recovery period in the next five years, said Mai Thi Thu, Director of National Centre for Socio-Economic Information and Forecast (NCIF). The economy showed steady upward trend since 2013. This has been reflected in absorbing housing loan offered to pick up construction growth. Under a US$1.44 billion stimulus package, launched in mid 2012, has helped to reorient developers and lenders toward the affordable and rising middle income markets. By 2015, more than a billion US dollars have been disbursed for new houses and apartments, according to the housing department under the Ministry of Construction (MoC). The change has improved the demand in the real estate market and raised the activities in the construction sector, said Tran Van Huynh, Chairman of the Vietnam Association for Building Materials. Huynh said the building materials market was waiting for increase in sales of apartments in the real estate market. But the sanitaryware manufacturers are yet to get a big push to utilize surplus or idle capacity, while the new capacity is coming up from TOTO Vietnam Co Ltd and others. This will ultimately go with the government plan that already asked the manufacturers to go for regular exports capitalizing on the lower production cost in Vietnam, compared to the other major exporters like Indonesia and Thailand. The government wants the industry escape the situation of unutilized capacity and unsold inventories. â&#x20AC;&#x153;We should explore necessary mechanism to escape the difficult situations and utilize all possible ways for efficiency in the management of production

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Analysis: Sanitaryware

Fujitsu IoT innovates TOTO Vietnam Japanese information and communication technology (ICT) major Fujitsu Limited has provided its innovative IoT (Internet of Things - technology platform developed by Fujitsu) to TOTO toilet production facilities in Vietnam. Fujitsu said it is making TOTO Ltd’s toilet production innovative in Vietnam, where 40 percent of households use a chamber pot, and the adoption rate for flush toilets has still not even reached 20 percent of the country’s population, TOTO aims to promote healthy lifestyles by providing products using its cuttingedge water-saving and sanitation-preserving technologies, to strengthen the production of sanitaryware, it plans to operate its new and third Vietnam factory beginning in March 2018 using Fujitsu innovation as an integrated system, after application in existing plants from July this year. Both the Japanese companies are working together in ceramic sanitaryware moulding operations, which must consider warping and shrinkage in post-processing; temperature management in tunnel kilns that require high temperatures and a great deal of attention; and inspections by certified inspectors who possess knowledge and experience. TOTO and Fujitsu believe the improved production will ultimately improve sanitation and water saving efforts and help eliminate polluting chamber pot usages that cause water-borne diseases. With Fujitsu Systems East, TOTO has embarked on a project to transform its Vietnam factory production with Fujitsu IoT technologies in September of 2015 and applied in its two existing plants in Vietnam last July successfully. The aim was to not only improve production and the quality of the sanitation ware, but also to train employees who can employ skilled techniques and advanced technology. The system enables quality data and information about the status of production throughout the whole manufacturing process to be collected and used. capacity most profitably,” said Le Van Toi, head of the Building Materials Development, in the MoC.

The overhang

Vietnam is emerging as the largest ceramic sanitaryware hub in Southeast Asia. The region’s largest manufacturer-consumer of sanitarywares is also becoming the largest exporter as the country has attracted huge investment and has large potential workers at a wage rate cheapest in the ceramic producing ASEAN countries. At the moment it has over 50 percent surplus capacity in more than a dozen factories under organized sector of over half a dozen established companies. Currently the total installed annual production capacity is about 16 million pieces of sanitarywares, a part of which is already being used for export manufacturing. Besides this, there are some factories under unorganised sector that meet the demand of lower segments of consumers. MoC believes that Vietnam’s sanitaryware production capacity may rise to about 21 million pieces a year in the next five years, 2016-2020, to meet the local demand and exports if the existing trend of economic growth of the country continues smoothly. The higher growth of consumption has led some of the existing investors in the sector to go for expansion or add new capacity to exploit the future opportunities. Among over half a dozen major manufacturers, LIXIL INAX, American Standard, TOTO, Vietnam Caesar Sanitary Wares JS Co Ltd, Viglacera Corporation, Hao Canh Sanitary Wares Co Ltd, FICO (Building Materials Corporation No. 1 under MoC) and Dong Tam Group, four foreign operators, LIXIL INAX, TOTO, Caesar and

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“By using tags and barcodes attached to products in production, as well as collecting a variety of performance information, including data about the mixing of raw materials, the humidity and temperature when raw materials are mixed, and the type of glaze applied to the sanitary ware, it becomes possible to trace individual products in real time. This enables an understanding of quality information from when the product was manufactured, right through to after it ships,” said Fujitsu. “To enable inspectors to record thorough inspection results, including details, the system displays a diagram of the flush toilet from all six perspectives, above and below, in front and behind, and left and right, where inspectors can instantly record or check the locations and status of flaws. Using the data collected on these tablets, system operators can digitally grasp locations with a tendency to produce flaws, or elements in the facilities or environment that may cause flaws. This can lead to further improvements in the manufacturing process.” Fujitsu said its built a system where production performance and product inspection results, which employees previously recorded on paper, can be easily input on tablets and handy terminals, improving communication and exchanges of opinion among workers. TOTO Vietnam production workers now easily share information, especially, the work procedures taken by experienced workers and inspection results, that was not previously able to be visualized. TOTO Group’s R&D worked with this IoT of Fujitsu and found it makes possible analysis with the use of statistical data, leading to improved production of high-quality products. With third plant, In ceramic sanitaryware manufacturing in Vietnam, group-wise, the second largest TOTO Vietnam’s annual production capacity will rise to over 2 million pieces and approach to the largest, and also Japanese owned, LIXIL Vietnam’s 3 million pieces. LIXIL’s INAX Vietnam and American Standard Vietnam are the main rivals of TOTO in Vietnam. American Standard, alone hold roughly a half of the capacity and production. Overall, the sanitaryware market showed a trend of improvement this year overcoming slumps in demand since 2012. Several global producers of ceramic sanitarywares rushed to Vietnam’s ceramic sanitaryware scene Year

2011

2012

2013

2014

2015

Production capacity in million pieces

13.1

13.6

14.7

15.05

15.05 + Est

Real production in million pieces

10.7

9.5

12.5

12.5 Est

Domestic consumption in million pieces (75-80 % of domestic output consumed in the home markets)

9.3

8.5

8.6

9.2

10 Est

Export value in million US dollars (Main markets: Japan and Taiwan)

64.3

77.80

107.2

130

92 *Est

Import value in million US dollars (Main sources: Thailand, China, Italy, Japan)

12.54

13.17

10.5

31 *Est

Source: VIBCA. *Estimate is calculated by ITC, Geneva, based on UN COMTRADE statistics (industry sources expect to be higher).

AC 16-9

asian ceramics

Analysis: Sanitaryware

Vietnam for manufacturing as the country’s Sanitaryware exports (US$’000) consumption of building materials experienced a high growth in the past Exported Exported Exported Exported Exported two decades, but they were faced with value in value in value in value in HS Code Product label value in 2015 2014 2013 2012 2011 challenges due to recessions this decade.. The country’s potentiality for exports Ceramic sinks, washbasins, was also attractive, because of its lower washbasin pedestals, baths, bidets, 691090 water closet pans, flushing cisterns, 1,875 368 1,068 245 63,118 production cost and easy access to urinals and similar sanitary fixtures the ASEAN markets. When the export (excluding of porcelain or china). driven economy suffered from the global Ceramic sinks, washbasins, washbasin pedestals, baths, bidets, recession in the recent years, its domestic 691010 water closet pans, flushing cisterns, 61,506 79,229 94,536 110,542 28,571 consumption was slowed down causing urinals and similar sanitary fixtures of porcelain or china. drastic fall in demand of sanitarywares. That had resulted in severe underutilization Sources: International Trade Centre (ITC), Geneva, calculations (estimated) based on UN COMTRADE statistics. of installed capacity while expansion was continuing. The country is now over supplied with Sanitaryware exports (tonnes) an annual production of 12-13 million pieces. Yet, it is still under expansion, while 2015 2014 2013 2011 2012 the domestic consumption remained Exported Exported Exported Exported Exported HS Code Product label quantity, quantity, quantity, quantity, nearly stagnant at about 10 million pieces quantity No quantity Tons Tons Tons a year in 2014 and 2015, due to slower demand in the housing sector that forced Ceramic sinks, washbasins, washbasin pedestals, baths, bidets, the production capacity remain badly 691010 water closet pans, flushing cisterns, 27,033 NA 40,450 45,218 NA urinals and similar sanitary fixtures underutilized till last year, according to the of porcelain or china. Vietnam Building Ceramic Association Ceramic sinks, washbasins, (VIBCA). washbasin pedestals, baths, bidets, 691090 water closet pans, flushing cisterns, 796 NA 461 120 NA Vietnam’s utilization of capacity in urinals and similar sanitary fixtures sanitaryware factories was, however, (excluding of porcelain or china). increased to about 80 percent in 2014 from Sources: International Trade Centre (ITC), Geneva, calculations (estimated) based on UN COMTRADE statistics. 70-75 percent in 2013 following increased exports and slightly improved activities in the house building constructions. Its main markets for sanitarywares are Japan, Taiwan and ASEAN countries. Exports in 2014 doubled to US$130 million, from US$64.3 million of 2011. Japan is the main and regular importer of Vietnamese sanitarywares, produced mainly by TOTO, INAX and American Standard, all Japanese owned manufacturers. In 2014 Japan imported about US$70 million worthy of Vietnamese sanitarywares, according to the Geneva based International Trade Centre (ITC). Taiwan was the second largest buyer Continuing expansions with around US$16 million and the shipments were made mainly with LIXIL Corporation’s President and General Director Shinji Ito, based in the products of Caesar, a wholly owned Taiwanese company. Tokyo, said the group is going to increase its investment in Vietnam’s Vietnam’s imports of sanitarywares are relatively low, mostly building materials sector including sanitarywares. Currently LIXIL supplied by Thailand and China. ITC statistics showed Vietnam Vietnam produces sanitary ware brands American Standard and imported US$5.757 million and US$3.356 million worth of INAX in Vietnam mainly for the Vietnamese domestic markets and for sanitarywares from Thailand and China, respectively, in 2014, when exports largely to Japanese markets, like that of TOTO Vietnam. the total imports from all sources were estimated at a little over US$12 LIXIL is the most comprehensive and connected global group in the million. According to ITC, Vietnam’s total imports of sanitarywares housing and building industry, from sanitarywares, bathroom fixtures rose to US$31 million in 2015. and kitchen systems to a full lineup of interior and exterior materials VIBCA said there were some new investments in sanitarywares in and products for houses and major architectural projects. Its focus 2015 in Vietnam. The government has targeted to export 6-8 million is to “bring together connected expertise, beautiful design, reliable pieces of sanitaryware products per year by 2020. Vietnam’s major quality and a responsible approach to business”. The group was exporters-manufacturers in sanitarywares are: TOTO, LIXIL INAX, formed in 2011 through a merger of five of Japan's reputed building Caesar, Viglacera, American Standard and Hao Canh. Industry sources materials and housing companies. said TOTO and LIXIL are eyeing a substantial expansion of export The group provides a comprehensive array of products and markets in Asia with their products from Vietnam.

asian ceramics

AC 16-9

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Analysis: Sanitaryware

services through four major business units, Sanitaryware imports (US$’000) LIXIL Water Technology (including American Standard and INAX), LIXIL Housing Imported Imported Imported Imported HS Code Product label value in value in value in value in Technology, LIXIL Building Technology, 2011 2012 2013 2014 and LIXIL Kitchen Technology, as well as Japan-based business units covering sales, Ceramic sinks, washbasins, distribution and retail, and housing services. washbasin pedestals, baths, bidets, 691010 water closet pans, flushing cisterns, 8,238 5,274 6,491 11,635 In Vietnam markets LIXIL operates with all urinals and similar sanitary fixtures its units. Such operations have helped INAX of porcelain or china. Vietnam and American Standard Vietnam Ceramic sinks, washbasins, washbasin pedestals, baths, bidets, become a leading player in middle class 691090 water closet pans, flushing cisterns, 348 1,363 2,425 453 and upper-end segments both. They have urinals and similar sanitary fixtures (excluding of porcelain or china). access to almost all LIXIL projects. Meanwhile, TOTO is gaining increasing Sources: International Trade Centre (ITC), Geneva, calculations (estimated) based on UN COMTRADE statistics. market shares in the region for expansion of manufacturing in cost effective base like Sanitaryware imports (tonnes) Vietnam as in Indonesia. It is continuing investment in Vietnam to cater domestic and 2014 2013 2011 2012 export markets. HS Imported Imported Imported Imported Product label quantity, quantity, quantity, Code TOTO controls about 10 percent of quantity Tons Tons Tons Vietnam's sanitaryware markets. its products are targeted for the upper-end customers, Ceramic sinks, washbasins, luxury hotels, resorts and villas, and high washbasin pedestals, baths, bidets, segment travellers’ comfort areas, as well as 691010 water closet pans, flushing cisterns, 3,121 NA 2,485 4,327 urinals and similar sanitary fixtures the newly emerged affluent Vietnamese. of porcelain or china. Its main toilet features include ‘Neorest’ and ‘Washlet’ smart toilets and similar bidet Ceramic sinks, washbasins, equipped shower toilets. These are some of washbasin pedestals, baths, bidets, 183 NA 1,112 206 its potential target areas, said the company’s 691090 water closet pans, flushing cisterns, urinals and similar sanitary fixtures Vietnam based general director Shinya (excluding of porcelain or china). Tamura. The company’s Vietnam operation eyes Sources: International Trade Centre (ITC), Geneva, calculations (estimated) based on UN COMTRADE statistics. Asia Pacific markets on priority for its highend products. Tamura said its capacity buildup in Vietnam will concentrate more on the premium products. VIETNAM SANWARE PROFILES Its Asian manufacturing has also focused on global markets, and has Viglacera Corporation been developing suitable products in the Southeast Asian plants. Location: Hanoi, Vietnam. Vietnam has emerged as the most preferred location for capacity Products: Ceramic sanitarywares, tiles, expansion, overtaking Indonesia and Thailand, according to the heavy clay items, and float and building glass. company insiders.

Centenary plant

TOTO is setting up its 3rd sanitaryware production plant in Vietnam at its present production zone, located at plot M-7, Thang Long Industrial Park II of My Hao District in Hung Yen province, with a fresh investment of 9.7 billion Japanese yen. Initial work of the project has started from January this year. The installation of the plant will be completed by the first quarter of 2018, while the full production at the plant will start from March that year. The new plant’s capacity is approximately 600,000 units of sanitarywares per year. This plant is part of its global supply chain set forth in the “FY2014– 2017 Mid-term Management Plan,” with a view to establishing production capacity in line with the company’s supply strategy. However, the impact of the establishment of the new plant on the consolidated financial results will be minimal, according to the company. The company said it has planned the global supply chain in the FY2014–2017 Mid-term Management Plan aiming at sustainable growth. This is in addition to the conventional production set-up, based on the idea of local production for the local market. “We have designated the Asia-Oceania region as our global supply base, and

asian ceramics

AC 16-9

Imported value in 2015

24,185

6,434

2015 Imported quantity, Tons

6,187

1,685

Production capacity of sanitarywares: Three sanitaryware companies under Viglacera group have a total annual production capacity of 1.5 million pieces of assorted ceramic bathroom and toilet products. Markets: established markets all over Asia and other continents. The products compete with leading foreign company manufactured products at the domestic markets. Trademark/brand: As a trade mark or brand, Viglacera is known worldwide as a major ceramic sanitaryware and tile producer of Asia. Owning status and others: Formerly fully state owned, now a stock market listed building material conglomerate for production and sales of ceramic and glass products and others. A part of shares offloaded to private investors, local and foreign. Thanh Tri Viglacera Sanitary Ware JS Company Location: Thanh Tri Ward, Hoang Mai Dist, Hanoi, Vietnam. Product: Full range of quality ceramic sanitaryware products under Viglacera brand. Markets: Domestic and export markets. The products compete with leading foreign company manufactured products at the domestic markets. The products also have export markets in Asia and other continents. Others: A unit under Viglacera Corporation. It has two sister sanitaryware manufacturing concerns: Viglacera Viet Tri Sanitary Ware JVC and Viglacera Binh Duong Sanitary Ware JVC

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Analysis: Sanitaryware

obtained a new plot of land located east of Hanoi, in Hung Yen, to construct the new plant in a move to bolster production capacity,” said the company. “In constructing the plant,” TOTO officially announced, “we will base the work on the “TOTO Global Environmental Vision” formulated in 2014, employ TOTO Group’s cutting-edge technologies and knowhow such as using the state-of-the-art tunnel kiln that features high energy efficiency, with a view to creating an environmentally-friendly, green factory.” The Japanese company has set this goal while observing its centenary next year. “We must strengthen the global expansion of our businesses even further to evolve by achieving the visionary long-term “TOTO V Plan 2017,” and then track the sustainable growth,” said TOTO Ltd’s President and Representative Director Madoka Kitamura, based in Fukuoka, Japan. The future expansions in Asia will be directed mainly towards Vietnam compared to other locations, even once most favoured Indonesia and the second important Thailand, for cost efficiency and rapidly expanding domestic markets.

King from Taipei

In last two decades of production operation in Vietnam, Caesar has greatly enhanced product quality. R&D and marketing personnel from home base in Taiwan worked hard to establish the Caesar brand as major one with an annual production capacity of over 1 million pieces of ceramic sanitarywares. The products are also exported to the world market. Like TOTO, INAX and American Standard, Caesar also expects to capitalize on the production base in Taiwan to reach the global markets. Although, in recent years, anti-Chinese activists, protesting against Beijing’s military presence in disputed waters in South China Sea defying Hanoi’s claims, very often cause disruptions in Caesar’s production operation in Vietnam, business runs as usual profitably. Caesar is constantly investing in modern machinery and research into advanced techniques to improve product quality, as well as develop highly efficient water saving toilets, and consolidate market shares in Vietnam. It has also targeted to exploit the Asean economic community markets from Vietnam. Caesar Vietnam said it has been producing sanitarywares adhering to user friendly and environmental sustainability. It has become one of the top three leading manufacturers of sanitarywares in Vietnam as a result of successful brand building and rapid sales growth with production capacity steadily growing. Its capacity of over 1 million pieces a year is flexible for expansion. “With the capability to develop and produce complete product lines of bathroom porcelain, quality toilets with bidets, faucets and bathtubs, we have the ability to provide one-stop shop to our customers,” said the company.

Modernisation goes on

This year, Viglacera has made a great progress in the field of sanitarywares, giving customers modern high-end sanitaryware products with various functions. The products include smart toilets, water-saving faucets, Nano enamel sanitarywares, intelligent and luxurious toilet models V92, V91 and V90, with many premium features and advanced facilities for users. In face of stiff competition from the foreign owned Vietnamese plants, such as, TOTO, INAX, American Standard, Caesar, etc, and imported sanitarywares, Viglacera products have been modernized and upgraded to consolidate its markets among the middle-end to high-end consumers. Much of the items are with bidet functions or alternatives and

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AC 16-9

FICO (Building Materials Corporation No.1, under MoC) Location: Ho Chi Minh City (production plants are in different places), Vietnam. Products: Ceramic sanitarywares, ceramic and porcelain tiles, roofing tiles and others. Sanitaryware production plant: Thien Thanh Sanitaryware JS Company Annual production capacity: Over 700,000 pieces of ceramic sanitarywares. Products: Ceramic sanitarywares. Location: Binh Chuan industrial zone, Thuan An town, Binh Duong, Vietnam Markets: Domestic and export markets. FICO products are exported to many countries, including, USA, France, Russia, Australia, Korea, Singapore, Taiwan and Japan. Owning status and others: FICO is a state-owned company, belonging to the Ministry of Construction. In addition to Thien Thanh Sanitary Ware JSC, it owns several ceramic plants, including, Vitaly (tiles), Thanh Thanh (tiles), Donai (bricks and roofing tiles), etc. Others: Thien Thanh Sanitary Ware offers, significantly, a good quality sanitaryware products from the locally owned manufacturer. It is price conscious and has sales support services. Hao Canh Sanitary Wares Co Ltd Location: Dong Co Commu, Tien Hai Ind. Park, Tien Hai, Thai Binh, Vietnam. Products: Ceramic sanitarywares. Annual Production capacity: Some 1.5 million pieces a year. Markets: Domestic and export markets. Others: Hao Canh Sanitary wares is one of the major producers of sanitarywares in Vietnam. Founded in 2001, it manufactures advanced ceramic sanitarywares, toilets, washbasins, urinals, etc, of international market standards. It insists on modern design with up-to-date technology matching the continuously development of interior, construction and the varied demands of consumers. It can also produce customized products and OEM to meet the customers’ requirements. Dong Tam Group Location: Factories in Long An, Da Nang and Hai Duong, Vietnam Products: Ceramic sanitarywares, ceramic and porcelain tiles, and roofing tiles. Markets: Domestic and export markets. Others and Trademark/brand: Dong Tam is a leading and known trademark in Vietnamese ceramicwares since some half a century. INAX Vietnam Sanitary Ware Co Ltd (LIXIL INAX Vietnam Co Ltd/LIXIL VIETNAM Co Ltd) Status: Foreign investment Total investment: US$133 million. Location: Gia Lam District, Hanoi, Vietnam Annual production capacity: 3 million product pieces. Has seven factories. Three in Duong Xa, and four in Hung Yen. Products: Ceramic water closets, bidet toilets, lavado, washbasins, urinals, bathtubs, fittings in bathroom, etc. Markets: Domestic and export markets. Shareholders: INAX Corporation (Japan), Hanoi Housing Investment and Development Corporation (Vietnam), Itochu Corporation (Japan), Hanoi International Manpower Supply And Trade Company (Vietnam). Others: INAX Vietnam is unit of LIXIL Group. Vietnam’s largest sanitaryware group manufacturer LIXIL’s brands include, INAX, American Standard, GROHE, JAXSON, etc. LIXIL group is now investing heavily in Vietnam for production of building materials, including sanitarywares. Its product ranges meet a diverse category of consumers from the middle to the upper-ends.

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Analysis: Sanitaryware

functional for upper-end users. Such products’ features include auto open/close, auto drain, auto enable heated seats, heated or warm water washing, drying, smoking and deodorant. The products are equipped with faucets with three functions of pre wash, after wash and massage wash. Their nozzle is sterilized with UV light after each use. Also have spill reverse functions, etc. Viglacera said the new generation showers and faucets applying new technology of air mixing into the water and saving water but still giving optimum comfort to users. Its manufacturing units, Viglacera Thanh Tri Sanitary Ware JVC, Viglacera Viet Tri Sanitary Ware JVC and Viglacera Binh Duong Sanitary Ware JVC are producing such products. They have demand in domestic and export markets both. Meanwhile, the state-owned organization turned stock market listed Viglacera Corporation has been privatized partly in July this year to raise capital from the private investors. It is the leading company in building material industry in Vietnam with regards to production capacity, product types, designs and quality satisfying many market segments from ordinary to luxury, according to its investment promoters. MoC holds 91.49 per cent of the total shares, while 11.34 per cent of its shares were uploaded to local and foreign private sector that brought in VND418 billion or some US$19 million. During the first half this year, before privatization auction, Viglacera’s revenue increased 19 per cent compared to the target for the period, which the company directors described as impressive given the fierce competition. Despite being known for products such as ceramic sanitarywares, ceramic and granite tiles, terracotta products, and nonfired materials, “glass is the most promising product of Viglacera in the current market circumstances,” the company CEO Nguyen Anh Tuan said.

American Standard Vietnam Co Ltd Status: Foreign investment Location: An Phú, Thuận An, Bình Dương, near Ho Chi Minh City, Vietnam. Annual production capacity: 400,000 pieces of sanitarywares. Products: A wide range of ceramic sanitarywares and bathroom fixtures and accessories, ranging from exquisite luxury design to standard range models. Markets: Domestic and export markets. Major export destinations are Middle East and Europe. Others: A Vietnam based sanitaryware manufacturing unit of LIXIL Group of Japan. TOTO Vietnam Co Ltd Status: Foreign investment Location: Thang Long Industrial Park, Dong Anh Dist, Hanoi, Vietnam. Products: Full range of ceramic sanitarywares and famous Washlet bidet toilets. Markets: Domestic and export markets Others: The company invented and patented the TOTO Washlet, which is an innovative smart toilet seat that features an integrated bidet that activates at the push of a button on the seat or a remote control; a small wand extends from the back of the rim and begins to jet water towards the backside of the user. Its technological innovations and high standard of quality have made it a dominant brand, considered by many as most clean, healthy and life-enhancing. Vietnam Caesar Sanitary Wares Joint Stock Co Ltd Status: Foreign investment. Sanitar Co Ltd of Taiwan is the parent company. Location: Nhon Trach 1 Industrial Zone, Dong Nai Province, Vietnam. Products: Ceramic sanitarywares. Markets: Domestic and export markets. Others: Ceramic sanitaryware manufacturer Caesar Vietnam was established in 1996, as a fully owned Taiwanese company in Vietnam market for production (in several locations) and sale of quality ceramic sanitarywares. Its main factory is located in Dong Nai province and has an area of 141.277m2, with three branches in Ho Chi Minh City, Da Nang, and Hanoi, and the dealerships spread across Vietnam. KOHLER Vietnam Status: Foreign investment Location: Le Thanh Ton Street, District 1, Ho Chi Minh City, Vietnam. Products: Ceramic sanitarywares (‘Made-in-Vietnam’ KOHLER brand items). Markets: Domestic and export markets. Others: In addition to marketing of KOHLER brand sanitarywares produced in different KOHLER factories worldwide, KOHLER Vietnam also sources its world class KOHLER brand OEM products from the leading manufacturers in Vietnam.

Thien Thanh offers, at affordable price to the middle-end consumers, the full range of ceramic toilet suites, wash basins, urinals, bidets, water filters, bathroom fittings, etc, which are produced in a modern production unit with technology and equipments imported from Italy, United Kingdom, Germany, and France. The products meet European standards and has diverse items, designs and colours.

More follows

MoC’s FICO owned sanitaryware manufacturer Thien Thanh Sanitaryware JS Company’s products are usually characterized by a wide range of designs, various color, high aesthetics and convenience. Products’ design is supported with easy fitting, usability and environmental friendly features. Now the company’s latest breakthrough design is the toilet sets with wash-out drain, vortex drain, pressure jet vortex drain and combined drain systems with high performance, water savings and smooth operation. Thien Thanh has just successfully launched research and application of CLEANMAX antistain Nano technology, with which, cleaning sanitarywares becomes much more convenient and easier ever before.

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Mega deals

The rapid growth of Vietnam’s sanitaryware market offers great deals to grab. David Kohler, President-CEO, US-based KOHLER, enjoys a lot when able to frequent this market where his winning a deal means something big. He seizes all at mega-size KOHLER Design Centre (KDC) at Hochi Minh City. KDC, KOHLER’s largest, biggest in Southeast Asia, showcases over a thousand KOHLER designs/products at a time, in addition to KOHLER’s seven large showrooms in Vietnam. Buyers from big projects hardly return empty handed after visiting KDC.

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Analysis: Sanitaryware

KOHLER is popular in Vietnam for its products, shipped from different parts of the world where it produces. In Vietnam some of the leading ceramic sanitaryware manufacturers, such as, LIXIL American Standard, offer manufacturing OEM for KOHLER to supply locally or for exports. KOHLER brand’s demand shows its commitment to expand investment in Vietnam, said David. “KOHLER has firm pledges to produce quality high-tech products with ‘Made-in-Vietnam’ label and attractive designs,” he added. David’s company has recently become official bathroom Main export destinations (US$’000) Importers

Exported value in 2010

product supplier for Vietnam’s giant project, Sala apartment, condo, shopping mall and commercial building complex. KOHLER will equip many thousand homes and establishments at Sala. KOHLER said since one decade it is present in Vietnam for K&B products, for kitchens and bathrooms, providing upper class lifestyles, with luxury and elegance, plus quality, beauty and sustainability, and Its portfolio includes Diamond Island, Gem Center, Ocean Villas Da Nang, Ho Tram Strip Resort and Spa, Palais De Louis, Royal City Hanoi, The Shell Phu Quoc, etc. Main import sources (US$’000)

Exported value in 2011

Exported value in 2012

Exported value in 2013

Exported value in 2014

Imported value in 2010

Imported value in 2011

Imported value in 2012

Imported value in 2013

Imported value in 2014

World

8,025

8,586

6,637

8,915

12,088

Thailand

3,247

3,498

2,386

3,381

5,757

2,548

2,970

2,308

2,520

3,356

Exporters

World

46,243

63,381

79,597

95,604

110,788

Japan

27,076

43,009

55,427

68,107

69,845

Taipei, Chinese

10,240

9,044

9,479

11,900

15,667

United States of America

3,399

3,021

3,974

3,926

5,396

China

Myanmar

955

1,336

1,370

2,312

3,583

Indonesia

393

563

340

401

531

Thailand

158

247

213

281

3,455

Japan

257

276

315

314

495

Cambodia

352

1,522

1,616

1,776

2,137

Malaysia

170

102

203

991

485

Philippines

578

179

1,457

431

653

462

552

411

1,353

Korea, Republic of

749

1,228

1,556

1,226

1,250

Italy

181

115

119

160

212

243

572

1,003

585

Germany

150

161

148

India

103

151

139

223

393

Spain

Hong Kong, China

542

640

326

614

306

United States of America

111

293

355

241

United Arab Emirates

179

429

250

127

282

Norway

China

833

352

1,245

776

267

Belgium

342

256

Taipei, Chinese

Indonesia

138

871

245

Turkey

Italy

125

113

223

Sweden

Laos

556

157

213

India

Panama

184

Switzerland

Kuwait

165

Australia

Singapore

101

158

129

Austria

France

Netherlands Russian Federation Germany

Saudi Arabia

Qatar

Sources: International Trade Centre (ITC), Geneva, calculations (estimated) based on UN COMTRADE statistics.

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Netherlands

AC 16-9

asian ceramics

Analysis: Logistics

On the fast track freight investments open up a new frontier Arguably the last piece in the puzzle for Indiaâ&#x20AC;&#x2122;s ceramic industry is an effective freight network to enable the cheaper, more efficient movement of goods and materials to more lucrative domestic and overseas markets. AC looks at how recent developments could finally be putting that piece in the jigsawâ&#x20AC;Ś

ndian exports have shown a continuous decline in the last two years. Partial reasons are global slowdown and slump in commodity prices. But an important reason is high cost of our products. A significant factor contributing to it is logistic cost. As a proportion of total product cost, it is estimated at about 14% compared with 9% in the US, 8% in Germany and similar levels in China. Mackenzie Investments did a detailed assessment of these and concluded that India is losing $45 billion annually because of these inefficiencies. It projected that by 2020, these losses could be $145 billion. The World Bank compiles an index of global competitiveness in logistics with higher rank indicating poor performance. This is done on six parameters including efficiency of clearance process by border control agencies including customs; quality of trade and transport related infrastructure including railways, road, port and information technology; ease of arranging competitively priced shipments; competence and quality of logistic services including transport operators and custom brokers; ability to track and trace consignments; and the frequency with which consignments reach in the expected delivery time. It indicates that in 2016, India was placed at 35th position among 160 countries. China, Malaysia, Singapore, Taiwan, Japan, Hong Kong and Thailand rank lower (done better). Among the BRICS (Brazil, Russia, India, China and South Africa) countries, India ranked highest except Brazil. Economy of Brazil is going through very turbulent times and its index value has fallen continuously in the last four years.

Rail fails?

Railways are a natural lead player to reorganise this process. Transportation by rails in other competing global economies has a much larger share. The US and China carry about 47-50% of the total

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AC 16-9

freight through railways. There is excellent road infrastructure in the US. But still they use it less for freight. India transports only 36% of its freight by rail and uses road transport to move 57% of goods. Indiaâ&#x20AC;&#x2122;s competing large economy of China uses roads for just 22% of its freight traffic and has a substantial share of 30% through waterways using the Yangtze river and coastal shipping. The US uses roads for 37% of its freight movement with another 14% by waterways. We have a meagre 6% movement through water transport or coastal shipping. A series of measures need to be taken to improve cost of logistics. First, the country needs to invest more on railway infrastructure expansion. A lot of this money has to come from the government. While large resources are being planned for the roads sector, no such resources are available for the railways. It needs higher priority in resource allocation. Second, while the government accords highest priority to it, internal resources of the railways must supplement it and should work with highest level of efficiency. The costs have to be cut, all tariffs reviewed and additional revenues raised. Operating ratio from current operations has to be improved. Third, there must be improvement in the last-mile connectivity and plan for five new high freight density corridors. These should be developed as the completion of eastern and western freight corridors. Without it, there cannot be any hope to transfer some of the road traffic to the railways. Fourth, the increased share of railways in freight is possible if it comes out with a plan for tie up with private road transport entities. It is possible to develop a group of logistic entities who should bring the rail and road transport together. This can be a government company too. Movements through roads then will be confined to railway siding of the loading town. At the other end, either another truck picks up the cargo or the original truck itself rolls out of the

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Analysis: Logistics

wagon. It is not a new idea but to make it work, the railways has to bring some incentive for private entities. The railways should use its land outside main towns to develop cargo terminals where its partners could join to develop a complex. Fifth, the government policy on freight by roads needs a relook. Movement beyond 300km must normally not be exclusively through roads but a modal mix of road plus rail, or waterways or coastal shipping. Initially such movement could be incentivised through financial support or tax relief. But in the long run, it must be a mandatory requirement. The broad policy must move towards encouraging lower pollutant railways and water transport. In the coming decades, health and education will need large resources. We must improve operational efficiency of the transport sector and have a larger share of railways in freight movement. This will help improve efficiency, stimulate growth and ultimately generate resources vital for the country’s needs.

World Bank steps in

Perhaps one of the cornerstones of this hoped for policy has taken place in October when India and the World Bank signed a $650 million loan agreement towards the third loan for the Eastern Dedicated Freight Corridor. The World Bank board had approved the project in June 30, 2015. The 1,840 km long Eastern Corridor extends from Ludhiana to Kolkata. "The World Bank is supporting the Eastern Dedicated Freight Corridor (EDFC) as a series of projects in which the three sections with a total route length of 1,193 km will be delivered sequentially, but with considerable overlap in their construction schedules. EDFC 3, approved by the Board on June 30, 2016, will build the 401 km Ludhiana–Khurja section which goes through Punjab, Haryana and Uttar Pradesh," the World Bank said in a statement. The project is being developed to carry freight trains of 6,000 to 12,000 gross tonnes. The DFC will also increase the capacity and raise the axle-load limit from 22.9 to 25 tonnes axle-load, while enabling speeds of up to 100 km/hr. The freight-only rail line will also facilitate faster and more efficient movement of raw materials and finished goods between the northern and eastern parts of India. The objective of the EDFC project is to augment railway freight carrying capacity along the Railway Corridor between Ludhiana and Kolkata. The project will benefit industries of Northern and Eastern India, which rely on railway network for transportation of material inputs and exports that would accelerate creation of jobs in the northern and eastern regions of the country,” said Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance. The World Bank had approved the first loan of $975 million for the 343 km Khurja-Kanpur section in the EDFC program in May 2011. The

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project has already been awarded contracts worth Rs.5500 crore. The second loan of $1.1 billion for the 402 km Kanpur-Mughalsarai section was okayed in April 2014. The contracts for civil works and systems has attracted “Implementing the Dedicated Freight Corridor program will provide India the opportunity to create one of the world’s largest freight operations. The corridor, which will pass through states like Uttar Pradesh, will benefit from the new rail infrastructure, bringing jobs and much-needed development to some of India’s poorest regions,” said Hisham Abdo, Operations Manager and Acting Country Director, World Bank India. “Moving freight from road to rail will reduce the carbon footprint of freight,” he added. The EDFC is being built on two main routes – the Western and the Eastern Corridors. These corridors are envisaged to increase railways’ transportation capacity. Currently, the rail routes connecting Delhi, Mumbai, Chennai and Kolkata, account for 16% the network’s route length, but carry over 60% of India’s total rail freight. Currently, road transport accounts for about 65% of the freight market and 90% of the passenger market in India. “The Indian Railways urgently needs to add freight routes to meet the growing freight traffic in India, which is projected to increase more than 7 percent annually. These freight lines will wholly transform the capacity, productivity, and service performance of India’s busiest rail freight corridors. At completion, it will be able to more than double its capacity to carry freight, with faster transit times, being more reliable and at lower cost,” said Ben L. J. Eijbergen, Program Leader, Economic Integration and the Task Team Leader for the Project. The government is exploring economic opportunities along the freight corridor. It plans to establish integrated manufacturing clusters with an investment of about $1 billion using EDFC as the backbone. The International Bank for Reconstruction and Development (IBRD)given loan has a 7-year grace period and a maturity of 22 years.

Land ownership issues

However, as always the case with India, there remains issues with regards to land purchase despite the green light being given for the project. On the eastern front — that will connect Ludhiana with Dankuni in West Bengal — nearly 10% of the land, which is close to 450 hectare, is yet to be acquired even as funding has now been tied up. Indeed, for the Rs 81,450 crore project, land acquisition and clearances have been the biggest headache so far. The project needed around 11,600 hectare — 6,000 hectare for the western and 4,587 hectare for the eastern stretch. While it was battling court cases and arbitration, a third blow came by the way of the new land

AC 16-9

asian ceramics

Analysis: Logistics

acquisition cost, which pushed up the average price from around Rs 1.3 crore a hectare to around Rs 2 crore — an increase of around 54%. Project cost has also been increased as the land acquisition cost rose 75% from the budgeted level of around Rs 8,000 crore to nearly Rs 14,000 crore now. This could go up further depending of the arbitration awards. In recent years, land acquisition has been a major headache for most infrastructure projects — highways, railways, power generation and special economic zones (SEZs). In several cases, the projects needed to be reworked, if not shelved. The corridors running across 3,360 km are aimed at building electrified railway system to enable each train to carry a load of up to 13,000 tonnes — which is the load carried by 1,300 trucks. On each corridor, Dedicated Freight Corridor Corporation of India (DFCCIL) is laying double lines, which will treble the average speed of the double-stack goods trains from 25 km/hour to 75 km/hour. "There is no escalation in the project cost. Whatever increase is there is on account of higher cost of land," said DFCCIL managing director Adesh Sharma, adding that the project would be fully ready by 2019-end, a year behind the original deadline. But, before that it needs to battle nearly 2,000 court cases and over 9,500 arbitration awards, of which nearly half are yet to be disposed off. DFCCIL planned the project in a way that it avoided large cities, where land acquisition was going to be a problem. But, challenges have come mainly from areas around the large cities, where prices are higher and "fertile" agricultural land is being acquired. Sample this: Nearly half the arbitration cases that are pending are in Haryana (2,277 out of 4,679 cases). When it comes to court cases, Uttar Pradesh tops the list with 669 out of the 1,020 pending cases. "Most of the arbitration cases relate to compensation based on the latest registration price. Wherever, there is an award, we are paying higher compensation," Sharma said. The project is impacting around 3.6 lakh people and arbitration awards tend to increase the compensation by 20-25% on an average. Clearly it will be hoped that such basic land tenure agreements do not jeopardise or delay this huge infrastructure project.

Ports to follow suit?

The Ministry of Shipping's ambitious Sagarmala project that aims to modernise India's ports is estimated to save up to Rs 40,000 crore per year spent on logistics by key industries, says a study done by the ministry. The study has come as a whiff of fresh air at a time when India’s lopsided freight modal mix is costing the economy as high 14 percent of its GDP. In contrast, developed nations spend at the most 9 percent of GDP per annum. As per the study, the Sagarmala project will save logistics costs for commodities such as coal, cement, iron, steel, food grains, fertilisers, and petroleum, oil and lubricant. The report says that the project will lead to an increase in

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AC 16-9

coastal shipping of these products up to 280 million metric tonne per annum by the year 2025. Every year 740 million metric tonne of coal is moved through the country. But only 23 million metric tonne per annum is moved through coastal shipping. Railways cost six times more than coastal shipping, but due to lack of optimisation of coastal shipping infrastructure, a major portion of the coal is moved through railways. Due to Coal India Limited’s efforts to increase its productivity, coal movement may spike up to 1,200 million metric tonnes per annum (MMTPA) by 2025. In that case lack of optimum coastal shipping infrastructure may lead to higher pressure on the railways. More than 90 percent of the railway tracks relevant to coal are running over capacity. The study says that coastal shipping can help India move up to 200 MMTPA of coal transported to the 400 thermal plants, and save up to Rs 17,000 crore per annum. It will also cut down prices of power produced in such plants by 50 paise per unit, says the study. The study also says that thermal coal amounting up to 70 MTPA for non-power uses can be transported through coastal route if portbased coastal linkages are provided. The report further says that steel and cement plants in India are mostly located near the places where raw materials are found. It sees potential of establishing up to 80 MMTPA steel and cement plants in the coastal regions, and savings of up to Rs 6,500 crore per annum in logistics. India can save another Rs 5,600 crore using coastal routes to move commodities such as fertilisers, petroleum, oil and lubricants, food grains and iron. The study also identifies locations for steel plants in Odisha, northern Andhra Pradesh, northern Tamil Nadu, and Maharashtra. For cement plants locations in southern Gujarat and central Andhra Pradesh have been identified, based on the mapping of limestone reserves. The projects aims to decrease exporting time by five days, which is now 32 days and save up to Rs 6,000 crore. It uses a three-step approach that requires connecting highways with ports, building dedicated toll lanes for export and import on national highways, and simplification of customs clearance method. The railways are also going to play a major part in decreasing logistic charges, the study says, adding that the share of railways in container transportation can be increased to 25 percent from 18 percent. It can help save up to Rs 3,000 crore in freight. The report adds that India’s container transport is skewed towards road transport due to high railway freight, lack of last mile connectivity, and lack of reliable rescheduling of freight trains. The study has identified 14 road to railway networks to bridge this gap. It envisions to save up to Rs 3,000 crore. The Rs 70,000 crore Sagarmala Project launched by the Government of India aims at changing the way logistic evacuation happens in India and decrease cost of freight for goods handled and evacuated by sea ports.

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Talking Shop

Talking Shop Plastic ball clays for engobes and smaltobbio Luc BOURGY - Technology Manager Raw Materials and Ceramics Applications and CĂŠdric POILLY - Technical Support & Projects, Tiles Body, Glaze & Engobe, both Imerys Ceramics, discuss raw material performance. The performance of raw materials used in engobes and smaltobbio affects the quality of the tile production in two ways: aesthetic and technical properties. The aesthetic requirements are measured after firing and the technical ones are determined by the application technology and the role of the engobe/smaltobbio. The function of the engobe layer is to improve the finish of the tile surface by acting as an interface between body and glaze. It can be compared to a primer for paints: a primary layer which will prepare the substrate on which one will apply one or several glaze layers to obtain the perfect finish. Imerys Ceramicsâ&#x20AC;&#x2122; goal is to improve the aesthetic aspects of engobes or smaltobbio so as to obtain: - opacity to enable tile body defects and colour, in particular for red bodies, to be hidden; - whiteness which is necessary to reveal the glaze depth and the decoration layers; - flatness & smoothness to improve the glaze finish. In addition to the final fired properties, the engobe has to be compatible with the application technology and the body formulation. Imerys Ceramics strives to obtain high performance engobe and therefore focuses on the following main technical requirements: - plasticity which enables the engobe to cover and to adhere to the body surface; - drying timing, that has to be adapted to the next application on the glazing line; - pinholes reduction on the glaze surface, by regulating the gases emitted from single-firing bodies; - fusibility to fill porosity and create an impervious engobe layer which in turn prevents water from penetrating below the glaze surface to create so-called watermarks. Imerys Ceramicsâ&#x20AC;&#x2122; main challenge is to find raw materials with good performances in all the above listed requirements. Some ball clays, like Hywhite Superb, present a well-balanced profile and results in good level of performance for each parameter. Other clays present different profiles and develop better whiteness like Hywhite Premium, Certiwhite or Whiteplas N13. (cf. Graph 1). Depending on the desired final requirements, the application technology used and the remainder of the components, the engobe formula can be optimized to obtain higher performances

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AC 16-9

Graph 1: Ball clay for engobe technical profile.

Graph 2: Typical profile for Ball clay for smaltobbio

or be more cost effective. The requirements for smaltobbio are different from the engobe ones. Smaltobbio is a combination of engobe and glaze in a single layer, opaque and mat as an engobe, fused and white as an opaque glaze. The requirements for smaltobbio differ from traditional engobe in the following ways: - it is usually applied by airless at low density to obtain a thinner layer; - it must be covering enough the body colour, even with a low thickness, resulting in high opacity; - the drying time must be long enough in order to allow tile cooling and surface smoothing before going to inkjet printing. For smaltobbio formula, the ball clays bringing more technical

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Talking Shop

Table1: Imerys Ceramics’ engobe formula tested

the optimum firing conditions to obtain the maximum benefits of the ball clays’ performances. Table 2 shows the firing profile to reach the maximum fired density for the different formula tested. In order to combine better performances and more cost effective recipes, Imerys Ceramics modified the engobe formula by working on several components. The quartz content was increased in the composition (orange and blue curves), thus reducing the overall engobe cost and improving both fusibility and whiteness (cf. Graph 3). Imerys Ceramics succeeded in offering compositions with significantly higher whiteness and better fusibility (cf. Table 2 and Graph 3). Choosing the right clay is critical to maximize engobe yield as it impacts on: - Whiteness & opacity; - Fusibility & watermark; - Plasticity; - Cost. In order to boost the properties of its minerals and foster innovation, Imerys Ceramics has set up major ceramic technology centres in Europe and Asia. Blending platforms and R&D facilities located near ceramic clusters enable their technicians to provide technical assistance and develop made-to measure formulations to sustain its customers’ development. Table 2: Fired density at 4 different temperatures and economic benefits present a profile where fluidity, plasticity and fusibility are at high levels (cf. Graph 2). Hywhite Superb, Hymod Prima and Hymod HSM/E provide balanced properties, fit for use in smaltobbio formula. Case study> Imerys Ceramics’ technical support worked closely with a customer’s engobe composition in order to offer a cost effective solution with better technical characteristics. The table 1 shows the different formula tested in order to reach economical and technical targets. Hywite Premium presents a lower plasticity, lower fluidity and higher whiteness profile than Hywite Superb. By introducing Imerys Ceramics’ Hywhite clays, the first improvement noticed is lower viscosity. The lower ford cup values allow to have a better control of the density and a better application on the tile. Imerys Ceramics then used a gas roller kiln to measure the fired properties of the engobe formula. In order to evaluate the sensibility of the formula, different tiles with the engobe were fired at 4 different temperatures. This procedure allowed to understand

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Graph 3: Whiteness index at 4 different temperatures

AC 16-9

asian ceramics

Insight

CHINA Percentage output of ceramic tiles by Province (H1, 2016)

Tile output (100m. Sq metres, H1 2016)

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Growth in output by Province, % (H1 2016 v H1 2015)

Sanitaryware output ('0000 pieces, H1 2016)

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Export value of sanitaryware (H1 2016, US$100m.)

Export value of tableware (H1 2016, US$100m.)

Sanitaryware output by Province (H1 2016, no. pieces) Province

Output (pcs)

Province

Output (pcs)

Beijing

788,050

Henan

37,150,681

Tianjin

234,318

Hubei

10,115,102

Hebei

11,896,013

Hunan

4,030,706

Liaoning

50,880

Guangdong

18,966,904

Shanghai

414,397

Guangxi

1,758,286

Jiangsu

107,033

Chongqing

1,429,246

Zhejiang

477,088

Sichuan

1,173,157

Fujian

3,530,481

Guizhou

187,870

Jiangxi

745,239

Yunnan

151,636

Shandong

1,041,784

Major ceramic export destinations by value (%) Export of household ceramics (H1 2016) Volume

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Value

Month

m.t

Growth rate (%)

USDâ&#x20AC;&#x2122;000

Growth rate (%)

June

0.28

-4.9

763,429

-20.2

May

0.29

-2

759,175

-17.5

April

0.27

779,268

14.8

March

0.2

38.3

562,119

33.6

February

0.18

-28.7

487,662

-41.6

January

0.3

-3.5

901,796

-14.1

AC 16-9

asian ceramics

Hunter and the hunted

The Twin Cities Dear Diary,

future...is there anything really useful to come out of Twin cities, agreements, partnerships...working for the such ventures? ship' - says the headline in a Ceramic Industry report of 'Stoke on Trent and Jingdezhen Strike Up Historic Partner this in the local Stoke on Trent news when I recently visited September 13th. That grabs the attention. I had heard of fully: this s explain the UK and the Stoke government web site 2016] signed an historic agreement to work in 'Two world-famous ceramic cities have today [8th August partnership for the future. and a host of other celebrated potteries, and the Chinese Stoke-on-Trent, the birthplace of Wedgwood and Spode ng 1,700 years and is responsible for the coining of the stretchi city of Jingdezhen – which has a ceramics heritage the alliance. phrase ‘china’ to describe fine porcelain ware – have forged Mayor Anthony Munday signed the partnership Lord n-Trent Jingdezhen deputy mayor Li Zhenfa and Stoke-o Trust visitor centre, in front of a range of rare English blue during a ceremony at the newly created Spode Museum factory site in Stoke-on-Trent from next month. Spode former bone china that will go on formal display at the strong historical and cultural ties, commits the cities to: The economic partnership agreement, which recognises eneurs entrepr and s •Develop exchange opportunities for student s of learning, including Staffordshire University and the institute and ities univers n betwee projects •Encourage joint ation organis l Jingdezhen Ceramic Institute – a university-leve cities •Encourage investors to support economic growth in both companies based in both cities. •Identify opportunities to establish joint ventures between t; it builds on strong ties and exchange visits Councillor Munday said: “This agreement is an historic momen a natural alliance between the two cities – we already is There years... developed by the two cities over a number of and heritage. We share a common bond of friendship and share a common focus on the incredible value of culture of learning and enterprise.” centres two our interest, with cultural and civic links between ent as threefold: it helps to promote exchanges agreem this of benefit the see I lly ersona Mr Li Zhenfa said:“P and relationship building; and Chinese enterprises ration co-ope for between businesses and people; it is a win-win age Chinese enterprises to invest in Stoke-on-Trent, and are seeking opportunities to expand their scale. We encour in expanding new markets. benefits have will have set up a joint enterprise exchange which ceramics. Maybe we can help to expand the of tion produc the and trade h, researc for centre a “Jingdezhen is . n-Trent market for bone china which is famous in Stoke-o Jingdezhen was one of the first Chinese cities I visited; a I have to admit to having more than a little interest in this. with a sandwich and four bottles of Tsingtao beer. armed ai Shangh 14 hour soft sleeper train journey in winter from and we were right next to the squat pan toilet. It was a I shared the cabin with 3 Chinese who smoked non stop memorable trip. it deserves first place – what with the Gaolin Of course Jingdezhen is an historic ceramic center – maybe in forming, firing and decorating which made it the ogy technol the and mountains from which we get the name kaolin e from Jingdezhen are in no doubt and though it was in 'Emperors Kiln'. The craftsman ship, innovation and produc to recover and redevelop itself. started recently decline for many years it has, like Stoke on Trent touch The personal Trent, Mike Wolfe to Jingdezhen in 2005 which was I actually attended a visit by a previous mayor of Stoke on s – that was a celebration of 1000 years of being the supported by several ceramic companies from The Potterie r Jing De in 1004. Though even the industry Empero Song to back Imperial Kiln Production Centre – going way to increase business it was a hit and miss affair – you can veterans there couldn't remember this. As an opportunity and encouraging speeches in the couple correct lly not really achieve a great deal more than politica the UK side was about how to stop from talk the mostly recall I as and town in of days we were got the ideas from for porcelain and we'd where ed copying by the Chinese, who probably wonder tion. blue & white decora

*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

and City agreements that has been brought home to It's this hit & miss nature of trying to arrange partnerships China and Chinese politicians and businessmen on visits me many times when I've arranged trips by Europeans to r out substantial deals as its very much a case of meet hamme to the EU and UK. There isn't really a lot of time to ts after round table discussions and banquets. There is and greet together with some rather vague pronouncemen achieve different things and trying to do so from very to trying also the very real problem of both sides very much have very different ideas of what success is and have different cultures and positions; companies and politicians certainly when they are Chinese politicians trying to Most home. very different bosses to impress when they return earn pay rises and promotions. and can be very profitable to both sides it is important So whilst I think these partnerships are very important, useful profit will be measured. to define what will be regarded as success and how exactly of exchanges of tourism, education and terms in that t Looking at the aims of the alliance I would sugges good hope of building foundations for future very a and s succes of chance good a is entrepreneurs then there in relative terms it is easier to set targets for what and e manag to growth. The reason is that expectations are easier ities can all gain from exchange visits as both cities can be achieved. Artisans, ceramic enthusiasts and the Univers new and interesting that could increase both things other the offer so much that is different, unique but can teach more Chinese travel overseas – as part of an itinerary of cities opportunities. Tourism into China is growing just as Stoke on Trent can not profit. and hen various places to visit there is no reason Jingdez be fulfilled can trade about hopes the that s I find far more dubiou help them to reach new markets, particularly the affluent 'It is a wonderful opportunity for local businesses and it will Chinese middle classes. sing our city’s pottery at Tao Xi Chuan – a major “Discussions are already taking place with regards to showca e ceramic companies are interested in joint ventures urban, mixed use regeneration project in Jingdezhen. Chines trade missions between the two cities.' further to keen with counterparts here in the city, and they are also e City not a like Beijing, Shanghai, Chines Three Tier a much very is hen Jingdez that The problem here is don't have to take a 14 hour train journey you – remote little a also Guangzhou, Shenzhen which are Tier One. It is ai or Shenzhen but it is still a distance by road that will now – you can easily fly in little over an hour from Shangh to influence other areas of China as it does not have the ability the take about 7 hours. Put simply Jingdezhen lacks tiers of Chinese cities is not an official classification sophistication or the reputation necessary to do so. The three mostly it is population, GDP, how international and but tier each and there isn't an agreement about what defines so on. Tier 1 cities have the power equivalent of a cosmopolitan they are, what political power they wield and include Nanjing, Hangzhou, Tianjin as examples. Tier would province whereas Tier two cities have less clout and suggest '..they don't even have a real Starbucks'. A little three cities? Well some uncharitable commentators would unfair but you get the picture. the whole Chinese market via Jingdezhen. Secondly Consequently it would be difficult to launch an assault on side about how Stoke on Trent can help to teach e Chines there is a pertinent point in the comments from the edged sword for the Stoke side as they would be double a – market an Americ the for the Chinese how to design nt market and become competitors. This importa an access to enabling the Chinese the means and knowledge failings – something the UK side would do well to take shows though the Chinese at last begin to understand their equal understanding of a market that is very different require will note of as entering the Chinese market successfully from anywhere else. build relationships and foundations which will be useful Thus these partnerships must be seen mostly as a way to term sales may be far too optimistic. But they should for business in the future – hoping that they will lead to short great distances its only through repeat visits and real over s be welcomed and encouraged, though they are alliance cooperation that they can achieve measurable success. 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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AC 16-9

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Advertiser feature

Review Tecnargilla 2016: Durst Full Digital Glaze Line conquers the digital tile decoration market Ten machines sold since the start of the year in the Italian ceramic district: new technology confirms all the quality and reliability-related plus-points in the ceramic product digital decoration field Durst, the industrial inkjet specialist, received a tremendous response for its Full Digital Glaze Line concept at this year’s Tecnargilla trade-fair. The all-in- one Durst Gamma DG 4.0 solution perfectly synchronizes glazing, printing and finishing stages into an integrated digital production process. The Durst Full Digital Glaze Line combines the latest generation of Durst Gamma DG for digital glaze and the new 8-color inkjet printers of the Durst Gamma XD 4.0 series, managed by a single workflow application. Developed as an “open system”, Durst Gamma DG 4.0 can be used with third-party glazes to enable maximum versatility and flexibility, and to provide competitive production costs. “Once customers examine the Full Digital Glaze Line, they understand the importance of the total synchronization,” says Norbert von Aufschnaiter, Segment Manager of the Durst Ceramics Printing Division. “Gamma DG provides digital glaze and the creation of variable structures, while Gamma XD supplies the decoration of the applied structure and the unique characteristics of the tiles.” By offering an efficient alternative to traditional complex processes, the Durst Gamma DG 4.0 glaze system, starting from a smooth mold, is able to apply a total coverage layer of glaze and to create real structures having very high definition and relief up to app. 1 mm, thus providing realism and tactical effects to tiles. This offers the possibility to explore new creative areas and to develop unimagined designs. All this with the advantage of guaranteeing maximum creativity to on-demand structure creation, such as the realistic reproduction onto ceramics of woodgrain, stone veins, cement and textures. This is made possible due to a patented printhead technology, studied and developed entirely by Durst to manage high viscosity and granulometry water base glazes up to 45 micron at a speed of 20 linear meters per minute with one bar per glaze. The machine configuration with a double color bar enables the simultaneous application of two different glazes per effect,

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which was previously impossible to configure in-line. Singular bars allow an inactive bar to be prepared for the next job, without interrupting the production process. The Durst ceramic print flagship model Gamma 108 XD 4.0 was also enthusiastically received. It also offers maximal flexibility in digital decoration using effect inks. Equipped with the DM (Digital Material) large drop technology, it applies large quantities of inks (beyond 100 g/m2) offering top quality and definition. This system stands out for its reliability and its innovative design: in-line with current trends, the Gamma 108 XD 4.0 enables printing of large format tiles, and is the only device providing patented access and extraction of color bars on both sides, therefore reducing space requirements. “We are extremely satisfied by the positive feedback received during the show and especially for our presentation at the 8TH ANNUAL MEETING ON DIGITAL DECORATION TECHNOLOGIES FOR CERAMIC TILES organized by ACIMAC,” concludes Norbert von Aufschnaiter. “The echo of this success passed the boundaries of the Tecnargilla to reach people at the Cersaie trade-fair and underlines the revolutionary impact of the Durst Full Digital Glaze Line for the ceramics market.”

About Durst Phototechnik AG Durst is the world’s leading supplier of digital inkjet printer systems for industrial applications. High productivity, print quality, reliability and flexible applications are the unique features of Durst inkjet technology across all industries. Durst’s innovative power makes a significant contribution in digitalizing product processes in many segments, thus ensuring permanent competitive advantage and profitability for its users. You can find further information about Durst Phototechnik on the website: www.durst-online.com.

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The “perfect wave”: Intesa wins over ceramic industry with the new DHD Dimatix Ten machines sold since the start of the year in the Italian ceramic district: new technology confirms all the quality and reliability-related plus-points in the ceramic product digital decoration field On the market since January 2016, the new DHD 3.0 Dimatix wet digital decorator, produced by Sacmi-Intesa, has proved to be a hit with the Italian ceramic industry. In just a few months some ten machines have been sold and installed. Some of them were first-time orders while others were repeat purchases by customers who, after putting the first machine into production, immediately decided to order others - a clear sign of their immense satisfaction with the machines’ performance in terms of print quality and manufacturing efficiency. GoldArt, Fondovalle, Gardenia Orchidea, Marazzi and ABK have all acknowledged and greatly appreciated the advantages of this new printer, which draws on Sacmi-Intesa’s unparalleled experience and know-how in designing and producing machines and plants for the digital decoration of ceramics. Ultra-high print quality and resolution is ensured by the new control software developed by Sacmi-Intesa’s engineers. This optimises the Dimatix technology and results in the simple, clean, efficient mechanical design of all machine components, ensuring the DHD 3.0 operates under perfectly clean conditions at all times. No lines or droplets, cleaning times broadly within the market standard plus a software architecture specifically designed to control latest-generation inks and glazes. These, then, are the defining traits of the Sacmi system: “open” by definition, it grants the customer huge freedom of choice with regard to the raw materials fed to the decorator.

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Moreover, the DHD 3.0 Dimatix stands out on account of an innovative mechanical concept and specially designed software that ensures perfect piloting of the head as a function of customerproposed inks and glazes. Development work done in the company’s labs to create perfect “wave forms” lets the head perform controlled, extremely efficient material application, providing solutions specifically designed to make the most of ceramic product aesthetic potential and the latest design trends. What makes the difference is – from a production efficiency standpoint - an autonomy that is decidedly better than anything attainable with analogous solutions, as the machine can operate well beyond 4 hours before any automatic head and nozzle cleaning tasks are required. Thanks to work carried out by the Sacmi-Intesa lab, the customer can also enjoy a total guarantee on compatibility between inks and internal machine components. SacmiIntesa also proposes the DHD 3.0 solution (in the DHD 1806 version) integrated on the new Sacmi CONTINUA+ line for the production of large ceramic slabs. Visitors to the Tecnargilla fair in Rimini will have a great opportunity to see it in action from 26 to 30 September. Just the first step, then, for a recently developed technology that is set to win over more and more customers within both the Italian and international ceramic industry.

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THE FUTURE OF DIGITAL PRINTING IS HERE

KNOW-HOW

TECHNOLOGY

OPPORTUNITIES

ELECTRONICS

SOFTWARE

The Sacmi Imaging division has developed an in-depth understanding of ceramic digital printing file processing.

A special team identifies the properties of the inks and the most suitable wave forms to maximise sharpness of the droplet and so achieve the highest possible definition.

Tr i e d a n d t e s t e d incorporation of Xaar technology is now joined by the new Dimatix option, guaranteeing full satisfaction of production requirements.

All-proprietary design and production of control electronics. Real-time data transmission.

The control software is developed on the shared Sacmi programming platform to ensure optimised handling of upgrades a n d i n te r- s ys te m communication.

Thanks to Sacmi know-how, the new DHD-X and DHD-D printers with Xaar and Dimatix technology offer all the advantages of digital printing, specially enhanced for ceramics. www.sacmi.com