Asian Ceramics AC19-4 by Bowhead Media Ltd

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AC19-4

OFFICIAL MAGAZINE:

CERAMICS CHINA GUANGZHOU

IN FOCUS: GCC tile trends Pollution control for bricks Southern Asian porcelain tiles Heavy clay pricing Plus news, views, analysis and much more!

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Contents: AC 19-4 News

Features

4 Inside Asia

34 Porcelain tiles: a real estate lifeline?

A gateway to a porcelain-tile-fuelled future.

6 Welcome

Coal-gas closures threaten Morbi units.

10 Across The Continent

Openings, closures and industry moves from across Asia.

20 International News Our eye on the international arena.

46 The pressure on brick prices

Rohan Gunasekera looks at how brick industry modernisation could have a gradual influence in the pricing of bricks right across the sub-continent.

52 Falling short: tile supply in the GCC

28 Material Matters

The ins-and-outs of ceramic raw materials.

AC takes a look at why despite the large-scale construction projects and continued investment in the Gulf States, there remains an enormous imbalance between makers and users…

32 Comment & Analysis

58 Clearing the air in heavy clay

The return of Phu Lang.

As announcements come that Pakistan is getting on top of adopting new, cleaner brick technology and enforcing its application before the end of 2019, AC wonders if this is finally the turning point for the clearing and modernising of the Southern Asian brick sector…

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Yogender Malik looks at how Southern Asia’s porcelain tile manufacturers are evolving their product offering to encompass a higher quality range and ever-larger sizes.

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AC 19-4

Analysis 66 Talking Shop Gilles Gasgnier, Ceramics Innovation Manager at Imerys Ceramics, discusses how to improve the performance of steatite-ceramics by the application of microcrystalline talc.

70 Insight

Analysis and insight into India.

72 The Hunter And The Hunted

William Hunter pulls up his chair, breathes in a lungful of polluted air, and asks when on earth Asia’s factories are going to normalise their environmental standards…

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Inside Asia FILLNG THE GAPS Porcelain tile demand in the Middle East has soared in the last few years and with no sign of a slow-down in terms of real-estate demand (driven primarily by government-backed schemes to boost hotel, commercial and exhibition space) the opportunities across the region show no sign of falling back. Added to that, pressure on Iran through renewed sanctions may make it more difficult for the latter’s burgeoning tile sector to have a widespread impact. This would also create more market chances for the region’s current players – or indeed, new entrants. In this issue, AC assesses the likely roadmap for the GCC in the coming few years…

Welcome

ust for a change, China is in the headlines over potentially dumping finished ceramic products. And also, just for a change, as AC went to press, Donald Trump had sent stock markets tumbling – again – after threatening to essentially massively increase the tariff burden on China. If the threat becomes reality, and tariffs are raised to 25%, then, according to one major ceramic maker in China, “there would be very little chance for Chinese ceramics exports in the US” Not only that, it was thought that this would amount to roughly 10 billion yuan (US$1.5 billion) of losses each year for Chinese ceramics exports, and highlighted fears that other Western countries could potentially follow US policy.

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AC19-4

CONTACT DETAILS EDITORIAL

OFFICIAL MAG

AZI NE: CERAMICS CHIN A

GUAN GZ HOU

IN FOCUS:

Plus news, views, analy

ADVERTISING AND DESIGN Advertising Sales Paul Russell Email: prussell@asianceramics.com Direct line: + 44 (0) 208 638 0619

GCC tile trends Pollution control for bricks Southern Asian porc elain tiles Heavy clay pricing AC COVERS.indd 2

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

sis and much more! 13/05/2019 11:50

It seems the mood is not restricted to government however. With the news this month also that tile manufacturers are petitioning the US authorities with regards to the imposition of tile duty on “dumped” products. Added to that, the industry’s leading manufacturing organization in the USA has also confirmed its support to the move. Indeed, Eric Astrachan, Executive Director of the Tile Council of North America (TCNA), the trade association of America’s ceramic tile producers, issued a statement in response to the filing by domestic tile manufacturers of a Petition with the federal government, seeking tariff relief from dumped and subsidized imports of tile from China (see International News in this issue): “America’s tile manufacturers are happy to compete against fairly traded imports. We have been hammered, though, by a flood of unfairly traded imports from China. Chinese tile producers benefit from extensive government subsidies and dump their tile into the United States at ridiculously low prices,” said Eric Astrachan, Executive Director of the Tile Council of North America. “Domestic manufacturers had no choice but to seek relief from the federal government from these unfairly traded imports. The future of the U.S. industry and of our member companies’ thousands of employees and their families depends on it.” Today, several of the largest U.S. ceramic tile manufacturers filed anti-dumping and countervailing duty petitions with the federal government. The industry’s anti-dumping petition seeks the imposition of tariffs on imports of ceramic tile from China to remedy unfairly low-priced imports that have injured domestic manufacturers. The countervailing duty petition seeks the imposition of tariffs to remedy the impact of Chinese government subsidies – subsidies that have resulted in low-priced imports that have injured domestic manufacturers. If the federal government, after an investigation, agrees that Chinese imports are unfairly traded and have injured or threaten to injure U.S. tile manufacturers, the government will impose tariffs on Chinese imports. The government would first impose preliminary tariffs in a few months, and would impose final tariffs at the conclusion of its investigation in approximately 16 months. The trading future with China remains uncertain for sure, but there can be no doubt that the tide of Chinese ceramic exports to North America, and perhaps even then to Europe as a knock-on, is about to change forever….and who knows what that is going to do to prices…. Happy reading!

Valerie Adamson Email: vadamson@asianceramics.com Direct line: + 44 (0) 208 133 5273 Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

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Bowhead events OVERSEAS OFFICES China Professor Wen 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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New tile plant for Yazd • Sanikey automates and continues to grow • RAK Ceramics announces improves in Q1 • Units face closure as coal gas issue continues • Tile industry bemoans tariff failures • Trend forges closer links with sanware roll-out • RAK increases automated glazing investment... IRAN

New tile plant for Yazd Yazd, the heart of Iranian ceramic industry has added one more ceramic tile producer in the long list of ceramic tile producers in the region. Though, in last three years existing producers or new investors have been resultant in entering ceramic tile manufacturing due to high overcapacity in the domestic market. Roka Ceram, a subsidiary of Khojasteh Industrial and Trading Group recently commenced commercial production from its state of the art manufacturing plant based in the Yazd region. The company imported a complete line from a leading Italian technology producer capable of producing 10,000 square meters of ceramic tiles per day. Roka Ceram will focus on production of ceramic tiles in 60 X 60 cm and 80 X 80 cm, two of the most popular sizes in the domestic market. Yazd region has been the major driving force of Iranian ceramic industry for a number of years. The region accounts

for about half of the ceramic tile output of Iran. After years of sluggish growth and declines in total production output, Iranian tile industry output increased by 14.8 percent during the last fiscal year, started March 2017- March 2018. Economic slowdown, uncertainity about sanctions and drop in exports volume have been the prime factors behind the slowdown in ceramic tile production in the country in last few years. The country produced 335 million square meters of ceramic tile products, according to the data from the Iranian Ministry of Industries, Mining and Trade. The country’s tiles and ceramics output amounted to 292.5 million

square meters in the preceding fiscal year (ended March 20, 2017). It was 4.4 percent less on year-on-year basis. Sacmi know-how leads the way From the raw material preparation department to the handling and sorting lines, all the solutions making up this complete plant have been supplied by SACMI. The core of the line consists of the MMC111 modular mill, the ATM110 spray dryer and the two PH3590 presses, a perfect combination of machines for manufacturing both floor and wall tiles in sizes ranging from 30x30 to 90x90 cm. Downstream from the presses, SACMI has configured a new

170-metre FMS kiln. Tested and started up at the end of 2018, the line is now producing 10,000 m2 a day, mostly in the 60x60 and 80x80 sizes. Note also that the line is ready to implement a doubling of capacity in the future. Roka also decided to invest in the very best SACMI decoration technology by purchasing two glazing lines equipped with two DHD1208 SACMI Intesa digital decoration units mounting Dimatix heads. All the handling and sorting solutions were provided by the Sima and Nuova Fima brands, SACMI Group specialists in the automation field. For SACMI - which has had a far-reaching presence in Iran for decades - this latest order is a key milestone, reached despite the country's ongoing difficulties. This cutting-edge plant will also provide an in-country example of what just what SACMI is capable of and may well lead to further investment by Iranian tile makers, both old and new.

TURKEY

Sanikey automates and continues to grow Founded in 2006, Sanikey has, over the years, become one of Turkey's leading ceramic sanitaryware manufacturers and strengthened its market position through continuous investment in technological innovation. Already a SACMI customer (previous purchases include ADM casting machines, Gaiotto glazing robots and a manual de-mould AVM cell), this Istanbul-based company is now taking quality to the next level with the construction of a new plant in the GEBZE-KOCAELI

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AC 19-4

A complete SACMI high pressure WC casting cell equipped with two AVM machines assisted by demoulding and piece handling robots is currently being installed at the new facility. The SACMI AVM previously purchased by Sanikey - until now used for manual demoulding of articles - will also be incorporated in the new cell. Providing total automation, quality, reliability and process repeatability, the casting cell will, in addition to the SACMI

AVM (the world-leading WC manufacturing solution that uses 7-part moulds) have a full array of accessory systems such as a slip dosing and pre-heating system, storage units complete with demoulding supports, a water intake system and all the tools needed to ensure automation of piece outfeed. Following on from the growth that has already transformed it from emerging manufacturer to pivotal player, Sanikey will thus be able to increase its export quotas, especially on

European and US markets. In short, this automated SACMI solution will provide greater manufacturing efficiency, quality and process consistency, allowing Sanikey to exploit the full potential of AVM technology.

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ROCA looks to expand offering Master • Tile unveils “massive” expansion • h local market • New roller kiln at Trend in Tianjin • AGIL moves closer to UAE

RAK Ceramics announces improves in Q1 start to 2019 which we expect to make up over the coming quarters. Continued investment in operational efficiencies has led to robust gross profit margins, as we remain focused on running a profitable business despite high energy costs. Looking ahead to the remainder of 2019, we will develop a strategy to further counteract increases in energy costs and improve profitability in Europe and Saudi Arabia. Our business in India is on the right track, we hope to establish it as a hub moving forward. RAK Ceramics is also always on the lookout for opportunistic acquisitions, as we optimise production and protect our growth in India, Bangladesh and the UAE.”  RAK Ceramics is one of the largest ceramics’ brands in the world. Specialising in ceramic and gres porcelain wall and floor

tiles, tableware, sanitaryware and faucets, the company has the capacity to produce 123 million square metres of tiles, 5 million pieces of sanitaryware, 24 million pieces of porcelain tableware and 1 million pieces of faucets per year at its 22 state-of-the-art plants across the United Arab Emirates, India, Bangladesh and China. Founded in 1989 and headquartered in the United Arab Emirates, RAK Ceramics serves clients in more than 150 countries through its network of operational hubs in Europe, Middle East and North Africa, Asia, North and South America and Australia. RAK Ceramics is a publically listed company on the Abu Dhabi Securities Exchange in the United Arab Emirates and as a group has an annual turnover of approximately US$1 billion.

ROCA looks to expand offering

According to Ranganathan, Roca in India is present in all the segments in the Rs 2,000-crore Indian sanitaryware market -- luxury (Armani Roca), premium (Roca, Johnsson Suisse), mass premium (Parryware) and budget (Johnson Pedder). He said the company will soon come out with kids and elderly people-friendly range of bathrooms. Queried about voicecontrolled toilets, Raimundo Garcia-Figueras, Senior Managing Director, Asia Pacific, Roca, said the company is developing the product on its own and would soon launch the same. Ranganathan said the sale of electronic urinals/ toilets are on the rise in India.

RAK Ceramics has announced its financial results for the quarter ended 31 March 2019. Performance in line with expectations Net profit decreased by 43.6% YoY because Q1 2018 net profit includes gain on sale of contracting assets of AED18.9 million. Excluding the gain on sale of assets, net profit decreased by 20.7% year on year primarily due to lower tiles revenue from UAE, Saudi Arabia, India and Bangladesh. However, the sanitaryware and tableware business performed well, with revenues increasing by 6.3% and 15.1% respectively year on year. Robust profit margins Gross profit margins increased by 100bps to 32.8%. Tiles margins increased by 90bps to 27.8% driven by continued

improvements in operations, while sanitaryware margins remain stable at 39.9%. Tableware margins decreased by 8.4% year on year to 51.6% due to changes in the product mix. Despite high energy costs, RAK Ceramics remains profitable and operationally efficient. Saudi Arabia expansion update Last quarter RAK Ceramics’ announced their intention to invest in a state-of-the art production facility in Saudi Arabia which in the first phase would add approximately 10 million square metres per annum to the company’s tile production capacity. Discussions on land and gas allocation are underway. Abdallah Massaad, Group CEO, RAK Ceramics said: “The first quarter of 2019 has been stable from the view of our gross margins. We had a slow

INDIA

Spanish sanitaryware major Roca is on the lookout for a suitable faucet and plastic product manufacturing unit in north India and it will retail imported bathroom tiles in India, said a top official of its Indian subsidiary recently. The official said that bathrooms are becoming technologyoriented, with sales of Bluetoothenabled showers showing an increasing sign and the parent Roca planning to launch voicecontrolled toilets. "Our faucet and plastics (toilet seats and other items) business is logging good growth and are on the lookout for buying a manufacturing unit in north

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India," K.E. Ranganathan, Managing Director, Roca Bathroom Products, told reporters here. Asked about the investment/ ticket size for the acquisitions, Ranganathan said for the faucet business it will be around Rs 40-50 crore and for the plastics Rs 15-20 crore. Ranganathan said the production capacity at its various plants are sufficient and by 2022, evaluation will be done whether to go for a greenfield project or expand in the existing facilities. He said the business is picking up after the dip in 2018 due to the introduction of Goods

and Services Tax (GST), The Real Estate (Regulation and Development) Act, 2016 and the effects of demonetisation. The company has launched its first product display studio in Tamil Nadu here, so that end-customers and architects can see and experience the products at leisure, while sales will be done by the dealers. According to Ranganathan, the company has launched six such display studios and there will be one studio each in Bengaluru and Hyderabad soon. The Spain-based Roca is nearly a Rs 15,000-crore group and the share of the Indian company is around Rs 1,200 crore.

AC 19-4

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News

PAKISTAN

Master Tile unveils “massive” expansion Pakistani ceramic tile producer is undergoing largest capacity expansion in Pakistani ceramic tile history. The company is investing USD 42 million to expand its installed capacity from the current 16 million square meters per annum to nearly 40 million square meters per annum. Established in 1982, Master Tiles & Ceramic Industry is among the eight ceramic tile producers in Pakistan. Based at Gujranwala of state of Punjab, the company has carried out expansion exercises in 2013 and 2015. Capacity expansion by Master Tile is expected to be completed by January 2020. Post expansion, Pakistani ceramic tile installed capacity will touch 100 million square meters. Though, currently, there is a balance between demand and supply of ceramic tiles in the country, but most of the ceramic tile producers have been running at low capacity utilization levels, as cheap imports have been flooding the country’s markets for some time. This expansion will enable Master Tiles to become one of the leading Asian companies in the sector in terms of volume produced. It will also strengthen its leadership in terms of quality, which will also allow it to become

more competitive in international markets. The investment has been financed by a group of local and international banks. SITI the tech provider It fell to SITI B&T Group S.p.A., a supplier of complete systems for the international ceramic tile and sanitaryware industries, listed on the AIM Italia stock market to supply the new complete plant to Master Tiles and Ceramic Industries Limited (Master Tiles), established in 1982 and which today is already the main ceramics group in Pakistan. With SITI B&T Group’s innovative and sustainable technologies, Master Tiles will become one of the leading Asian companies in the sector in terms of volume produced. It will also strengthen its leadership in terms of quality, which will also allow it to become more competitive in international markets. The investment has been financed by a group of local and international banks. “The plant consists entirely of the latest high-tech equipment supplied by our Group, which is a true “Full Provider” – comments Fabio Tarozzi, CEO of SITI B&T Group – and in every stage of the production process it guarantees a highly specialized solution, which combines production efficiency and Energy

Savings, to give the finished product first-class technical and aesthetic characteristics". This order demonstrates the capability and the added value of the Group to provide complete turnkey lines with technologies that are constantly developing due to significant investments in R&D. Examples of this include the kilns that use the patented Titanium® technology, the high tonnage EVO presses, the digital decorating machines made by Projecta Engineering and the surface finishing machines for ceramic products produced by Ancora. The plant Company

will be delivered within the next 12 months. Its strong presence in all the major ceramics manufacturing districts and its strategic presence in all markets with the highest growth rate, together with the wide range of SITI B&T Group technologies and a unique product range in terms of completeness, represents a guarantee for growth. The Group ended 2018 with consolidated sales revenues of 206.2 million Euros, +1.4% compared to the 203.3 million Euro in the financial year 2017, with a two figure increase in the sales margin. Location

Capacity

Master Tiles & Ceramic Industry

Gujaranwala

16 million square meters/ annum

Shabbir Tiles & Ceramic Industries

Karachi

13 million square meters / annum

Karam Ceramics Limited

Karachi

6 million square meters/ annum

Peshawar

6 million square meters/ annum

Karachi

8 million square meters/ annum

Gujaranwala

600,000 square meters/ annum

Jahangir Pura

500,000 square meters/ annum

Frontier Ceramics National Tiles & Ceramics Limited Makkah Tiles SWAT Ceramics Sonex Tiles & Ceramics Industries

Gujaranwala

4,000 square meters/ day

INDIA

Units face closure as coal gas issue continues The spectre of permanent closure hangs over nearly 150 units in India’s largest ceramic cluster near Morbi town in Gujarat due to a recent order of the National Green Tribunal (NGT) to shut all these units that run on coal gasifiers and switch over to natural gas. On March 6, 2019, the national watchdog on environment had ordered a shutdown of all ceramic units. The order given by the Delhi Bench of NGT came as major blow for the India’s largest ceramic cluster as nearly 400 of the 900-odd units immediately down shutters. However, within

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AC 19-4

a fortnight, some of the units converted to natural gas but in the case of units which would be forced to close, it would be difficult to start the production due to financial constraints. “More than 150 small factories, which were running on cheaper coal gasifiers, might be shut down permanently as they would have to incur investment of at least `3 crore to construct new kiln and other technological upgradations. Some of them didn’t have adequate land to match the length of kiln run on natural gas. Already land prices near Morbi and Wankaner towns, where most

of these factories are situated, are exorbitant and these small players couldn’t afford it,” said Nilesh Jetpariya, president, Morbi Ceramic Industry Association. Such closure would ultimately translate into reduction of production, said Jetpariya, adding that the state government as well as the central government should come out with measures to save small factories from closure. The other reason of dip in production would be higher prices of piped natural gas which is `35 per cubic metre, over 40% higher than coal gasifiers. In such situation, middle-level units which have

migrated from coal to gas would reduce output. “Going by these reasons, the production of Morbi ceramic cluster would reduce by 15% till the market would absorb increasing prices of ceramic products,” said Jetpariya. At present, Morbi clusters’ annual turnover stands at nearly `40,000 crore. India’s largest ceramic cluster gives direct employment to about 4 lakh people and 2,000 auxiliary units including paper mills, packaging units, ceramic machinery manufacturers and engineering units, among others. There would be impact on these employees as well as auxiliary units, too.

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News

PAKISTAN

Tile industry bemoans tariff failures National Tariff Commission (NTC) has failed to protect local industry even after acknowledging large scale dumping of Chinese ceramic tiles in the country. Industrialists said that the government has assured protecting local industry while signing Free Trade Agreement (FTA) with China. They elaborated that tiles industry has provided proof of dumping of Chinese products into Pakistani markets. Though NTC imposed anti dumping duty on import of tiles from China in October 2017, the industry has yet to get a relief. They said that NTC has not made any effort to expedite the process of disposing of the court case. “Since then, the NTC did not pursue the case and a big loss to the national exchequer as well as to local tiles manufacturers is continued,” reasoned an official in the tiles manufacturing industry. For example, a company in Karachi imported (GD number KAPE-HC-129712-11-02-2019)

15939.0000 square meter (223.14600MT) ceramic tiles from China with the import value of Rs 6,084,583 but did not pay a single penny in terms of antidumping duty due the court stay order. Similarly, another company from Lahore imported (GD number KAPEH C - 1 2 4 17 8 - 0 1 - 0 2 - 2 0 1 9 ) 10725.1200 square meter (215.99200MT) porcelain tiles from China with the import value of Rs 6,485,739 without paying any anti-dumping duty on them. Moreover, a company from Sialkot imported (GD number KAPE-HC-136068-20-02-2019) 13587.8400 square meter (242.10000MT) polished porcelain tiles from China with the import value of Rs 9,864,480 but no anti-dumping duty was paid. “These three examples clearly show that the importers did not pay a single penny in terms of anti-dumping duty on the imported tiles worth Rs22 million, which would have been more than Rs2 million in just

these three cases,” he said. Considering these three examples, he added, one can easily imagine the extent of loss to the national economy just because of lack of interest on the part of NTC to safeguard the national interest and local tiles industry. “Almost 12 million square meter tiles are imported in the country every year from China and if we calculate the anti dumping duty it will translate into a significant amount from (Rs6 billion to Rs24 billion) at a defined range of (9.35% to 36%).The NTC must pursue this case in the best interest of the national economy and to stop loss to national industries,” he added. The importers are also involved in mis-declaration as that value of the tiles imported in one case under GD number KAPE-HC-124178-01-02-2019 was declared at$4.30 instead of $4.90, which resulted in loss to the national exchequer in a single case of Rs943,542 which also doesn’t include antidumping duty.

This mis-declaration is also costing a huge forex annual outflow of around $40 to $50 million to our struggling economy. “The Ministry which claims to protect the local industry has so far not even established a case against the importers who are inflicting loss on the national exchequer by mis-declaration while also enjoying the interim relief given by the court to not pay anti dumping duty till the next hearing, as the Ministry has failed to pursue the case,” he added. Moreover, the government should also make efforts to curb smuggling which eats up a major chunk of government revenues and local industry share. “The government should support the industries which can help in revival of economy by job creation, tax contribution and boosting exports,” he said adding that this will also attract the much needed investment in the country.

BANGLADESH

Trend forges closer links with local market Asia’s largest kiln furniture manufacturer, Trend, is gearing up to make further significant inroads into the Bangladeshi ceramic market following a year of intense travel, talks and positive results in the South Asian region. In addition to general pottery, figures for 2018 from the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA) suggest there are now installed annual capacities of around 9 million pieces of sanitaryware, 200 million square metres of tile, and 255 million pieces of tableware. The industry is thought to employ half a million people in Bangladesh. “This is clearly an important ceramic manufacturing market and one that continues to maintain healthy growth rates,” commented Trend’s International

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Sales Director, Steve Tingay. “Producers there had already been taking notice of the extraordinarily broad range of kiln furniture offered by Trend, as well as our dedicated R&D centre and successful material development programme, which together put us at the forefront of the industry.” In order to help accelerate Trend’s expansion in this market, the company is now working in close collaboration with Dhakabased SK Trade International and its CEO, Shishir Saha. SK Trade International is an experienced agency with a background of marketing into the ceramic sanitaryware, tile and tableware sectors. It operates across the range of portfolios, including raw materials, refractories, spare parts, decals, machinery and ancillary equipment. There are currently six members

of the SK team and they have worked together successfully to establish a good rapport with many major producers and have established a good track record in servicing this industry over the past 10 years. “It’s important to be able to call on the support of local expertise, not only in terms of sales efforts but also to strengthen good lines of communication and to maintain regular, meaningful contact,” added Steve Tingay. “I’m pleased with the work we have achieved so far with Shishir and his team and we can already see how Bangladeshi manufacturers are picking up on the Trend message – there’s certainly a heightened level of interest and I’m confident that this will be reflected in a higher level of Trend kiln furniture sales here as we move through 2019.” Steve was able to confirm to

Left, SK Trade International CEO, Shishir Saha, alongside Trend's International Sales Director, Steve Tingay

Asian Ceramics that Trend will back up all its important work in Bangladesh by participating in this year’s Ceramic Expo Bangladesh, the second such event to be staged, and which takes place at Dhaka’s ICCB from 5-7 December. The expo organisers are hoping to attract over 12,000 foreign and domestic visitors this year.

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News

CHINA

New roller kiln at Trend in Tianjin On 28 March 2019 Trend formally lit its latest roller kiln at the brand new factory in Baodi, Tianjin. The roller kiln is 98 metres (320 feet) long and is able to fire to a maximum temperature of 1400°C (2550°F). This is another leap forward for the company, especially given that the overall loading capacity is one and a half times greater than the previously used roller kiln in Beijing. “The lighting of this state-of-theart roller kiln is another milestone along the way for Trend,” said international sales director, Steve Tingay. “We have already

achieved an incredible amount in a relatively short space of time at the Tianjin factory and further important additions to our facilities will continue throughout 2019. By the time this second phase of activity has been completed, we aim to see a 50%

increase in production capacity.” Trend has at the same time been meeting up with international customers, having just participated in both the Indian Ceramics and Keramika (Indonesia) exhibitions. There were plenty of in-depth discussions with ceramic producers at both shows, and the Trend sales team was able to update everyone on continued good progress in Tianjin and the company’s plans for expansion in the South Asian and SouthEast Asian markets. “The next opportunity for everyone to get together will be

at Ceramics China, the world’s largest ceramic machinery, equipment and materials show,” added Steve. “Once again, Trend will have a prominent stand and all current and prospective customers are warmly invited to come and meet the team.” This year, the Trend presentation is in Hall 2.1 – Stand B217. Anyone wishing to prearrange a meeting with the company’s sales and technical support team can simply send an e-mail to steve.tingay@beijingtrend. com.cn and note which day and what time would be ideal for a meeting on the exhibition stand.

INDIA

AGIL moves closer to sanware roll-out With an aim to provide 'Complete Bathroom Solutions' under one roof, Asian Granito India Limited (AGIL), one of India’s leading tiles companies, has ventured into Sanitaryware. The company is entering the Sanitaryware segment with 160 SKUs with products including Wash Basins, Water Closets (WC), Urinals, etc. Commercial Launch of 'AGL Sanitaryware' is expected by June 2019 across India. The company is launching Sanitaryware in the mid and mid premium segment under

the brand name of AGL. Company is investing around Rs 8 crore for the expansion in the Sanitaryware business and expect the segment to contribute around Rs. 80-100 crore in the next 4-5 years. "Expansion in the Sanitaryware is in line with company's growth strategy to focus on Asset light and Capital light business model, becoming a strong retail brand in the domestic as well as exports market and achieve a leadership position in key business segments. In line with our strategy, we are

venturing in the Sanitaryware with 'Outsourcing Model' - Sourcing from domestic markets as well as import from Europe and China in the first phase. Company will be setting up its own manufacturing facilities in the coming time. Asian Granito is committed to becoming a leading 'Complete Bathroom Solutions' brand and is also planning to enter in the faucets in near future,” Kamlesh Patel, CMD, Asian Granito India Ltd said. Mukesh Patel, Managing Director, Asian Granito India

said, "Asian Granito India Ltd today is ranked amongst top 3 listed ceramic tiles companies in India and we would aim for a similar scale in the sanitaryware business in coming years. We are entering sanitaryware with 160 SKUs in Wash Basins, Water Closets (WC), Urinals, etc and expand the product range gradually. AGL Sanitaryware will launch commercial operations in June 2019 Pan India. We estimate the sanitaryware segment to contribute around Rs. 80-100 crore revenue over next 4-5 years."

BANGLADESH

RAK increases automated glazing investment Following investments in its sanitaryware casting and firing line, RAK Bangladesh has again turned to SACMI to automate the glazing department, its aim being to produce high quality products while maximising line efficiency and training up workers. The third SACMI glazing cell to be installed by the Dhakabased parent company, this solution makes use

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of a SACMI-Gaiotto GA 2000 robot; perfect for implementing self-learning glazing programmes, the latter also features a mass control system to modulate glaze delivery. Placed at the centre of a 4-position turret, the robot controls cell operation and can govern glazing of at least a thousand pieces a day over three shifts, providing guaranteed glazed product

quality and increased efficiency. Alongside uniform thickness and perfect repeatability of application, SACMI-Gaiotto technology also allows for a consistent reduction of overspray and, therefore, raw material waste. The installed glazing cell, which will become operational during the first few months of 2019, is linked to two bar-type conveyors and the relative handling device for automatic

piece loading and unloading. As before, the investment decision was driven by a desire to make the most of the very best SACMI automation technology to saturate the output capacity of the Dhaka plant, which already exceeds 1.4 million pieces, a figure that makes the company – part of the international RAK Ceramics giant – the leading player on the Bangladeshi market.

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INDIA

GAIL blows in for piece of gas action GSPC LNG, the trading arm of Gujarat State Petroleum Corp. (GSPC) group is likely to face stiff competition from India’s largest natural gas marketer, GAIL (India) that is looking to enter Morbi to sell natural gas. The country’s biggest ceramic manufacturing cluster at Morbi is regarded currently as a stronghold for Gujarat Gas with the latter selling nearly half of its total natural gas there. Gujarat Gas buys its entire LNG requirement from GSPC that is banking on gas supplies from the newly built LNG terminal at Mundra to meet the growing demand from Morbi. The terminal project by GSPC LNG is likely to receive its first cargo by mid-this year. A meeting between officials of GAIL and the Morbi Ceramics Association was held in late April at which GAIL has offered to supply gas at rates better than Gujarat Gas, officials close to the development have said. A large number of ceramic tile makers are switching over to natural gas following the order of the National Green Tribunal (NGT) to close ceramic units running on coal-gasifiers. Gujarat Gas earlier supplied about 2.5m. cu. Metres per day (mmscmd) to Morbi. However, after the NGT order, its supply

almost doubled, said one government official. “The total gas supply by Guajrat Gas is about 8-8.5 mmscmd of which half is destined for Morbi. However, Gujarat Gas may not lost its income as it will continue to earn from the network tariff

natural gas prices. “We would not like to comment, as it is a commercial matter” said a GAIL official when contacted. Gujarat Gas and GSPC officials when contacted refused to comment on the matter. To start with, GAIL is looking

“GAIL’s entry could cause a major upset for GSPC LNG. that GAIL would have to pay for using its pipeline infrastructure” the official added. Gujarat Gas’s five-year long market exclusivity for city gas distribution in Morbi ended recently, but it still has network exclusivity for a 25 year period. “Diversification of suppliers is crucial to maintain uninterrupted flow to cater to any eventuality, GAIL said in a communication to the ceramic industry of Morbi. GAIL has offered to supply gas at rates that are linked to Henry Hub

to sell 0.5 mmscmd for a period of two months at about US$7.5 per MBTU, one insider conjectured. “GAIL has approached Morbi makers for the supply of natural gas” confirmed Nilesh Jetpariya, president, wall tiles division, Morbi Ceramics Association. The central PSU has worked out two options for the industry, which include the supply o fgas through tankers and pipelines. “Supplying gas through tankers will make it costlier

to the industry. GAIL will have to pay transmission charges to Gujarat State Petronet Ltd (GSPL)” said one industry observer. The monopoly under threat? It’s not surprising that GAIL wants a piece of the action. Shares of city gas distribution company Gujarat Gas Ltd rallied in trade after the recent National Green Tribunal (NGT) Delhi order. Gujarat Gas shares rose as much as 7.31 percent instantly, before settling back. Currently, the ceramic units at Morbi consume around 2.5mmscmd of gas (~50% of total units operate on gas). Earlier, the number was as high as 4 mmscmd, but this was reduced as companies switched to low-cost coal gasifiers. The new ruling will make the volumes shift back to Gujarat Gas’ portfolio. Even if 50 percent of the lost volumes are routed back to Gujarat Gas, it would mean a 13 percent impact on FY20EPS of the company. IDFC Securities says, “An addition of 0.7mmscmd of volumes will add 14% to Industrial segment and 10% to overall volumes for the year for the company.”

INDIA

Traders under pressure as fraudsters exposed After traders in textile sector, it is the turn of ceramic manufacturers in Gujarat to act tough against fraudsters. Ceramic players will now blacklist all the buyers, who fail to pay and even initiate criminal action against them. Industry players said that frauds worth Rs 20 crore have been reported in about six months. There are over 15 buyers, who repeatedly fail to pay causing financial harm to about 70 companies. In order to device a road map to deal with fraudsters, a meeting

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of ceramic manufacturers was held recently in Morbi. "We are taking these frauds seriously. Soon, a road map will be chalked out to deal with the fraudsters. But one thing is clear, we will blacklist all the fraudsters and take criminal action against them," said Nilesh Jetparia, President of Morbi Ceramics Association, Wall Tiles Division. As part of the drive, a list of buyers who have defaulted for Rs one crore or more, will be prepared and circulated among the manufacturers,

so that they do not fall in the trap. Moreover, cases of frauds will be registered at police stations. In one such case, a fraudster was arrested from Vadodara on Thursday. K G Kundaria, former president of Morbi Ceramic Association, Vitrified Tiles Association, said that sellers should be vigilant before dispatching the consignment. He also admitted that market conditions are such that one has to sell on credit, increasing chances of fraud. "Often companies sell goods without

verifying the credentials of the buyer. Market condition is not conducive to demand advance from the buyers. There are some habitual offenders who take advantage of such a situation. Sellers also sell out of fear that if he does not sell, his competitor will," said Kundaria. Industry players say that such frauds have come to the fore at a time when the sector is passing through a slowdown and so it is necessary to act tough on those attempting to undermine the industry.

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News

International News

V&B sees steady improvement Germany

illeroy & Boch one of the most important international groups in the ceramic sanitaryware and tableware sectors, posted consolidated revenue of 853.1 million euros in the 2018 financial year (up 2% on 2017 or 2.8% on a constant currency basis) along with a 7.6% improvement in EBIT to 53.6 million euros. These positive results were driven by the Bathroom and Wellness division, which generated more than two-thirds of the group’s revenues (584.3 million euros, up 4.7% from 2017 or 7.3% on a constant currency basis), offsetting the contraction in the Tableware segment (down 4.4% to 266.2

million euros). The Bathroom and Wellness division’s sales in the domestic European market remained almost unchanged with respect to 2017 at 453.7 million euros (+0.4%). The UK experienced a decline in revenue partly as a result of the weakness of the pound (-7.3%), whereas Southern Europe enjoyed an outstanding revenue performance (+7.6%) and revenue in Germany continued to rise (+1.3%). Demand was much stronger outside Europe, where revenue increased by 22.8% overall to 130.1 million euros. The Asia-Pacific region again achieved strong growth (+33.4%), passing the 100-million-euro mark for the first time. China contributed

SACMI partners with MIT United States

ince 1st March 2019 SACMI has been a member of the MIT (Massachusetts Institute of Technology) Industrial Liaison Program. Founded in 1861, MIT is the world's leading university in the applied industrial research field. Signed by Paolo Mongardi, President of SACMI Imola, and Karl F. Koster, executive director of MIT corporate relations, this agreement reinforces SACMI's research role even further. As the President of SACMI Imola, Paolo Mongardi, points out, "this year sees SACMI celebrate its centenary. The company's growth on international markets has been driven by continuous innovation and

has made us a pivotal player on the global plant engineering scene. The partnership with MIT - an agreement pursued by SACMI's Board of Directors with great determination - aims to boost our innovationgenerating capacity even further." Thanks to this membership, in fact, SACMI will have access to a whole series of MIT programmes and services concerning applied research in a number of relevant industries. Guided by MIT-designated Program Director, Kenneth Goldman, SACMI will be able to state its needs and areas of interest as regards emerging technologies and collate/compare information with internationally

Laminam sold to Alpha Italy

few months after selling 60% of System’s ceramic business to Coesia through the new company System Ceramics, Franco Stefani has also sold Laminam, the company set up in 2001 and now the global market leader in the field of large ceramic surfaces. The purchaser is Alpha Private Equity Fund 7, which on 23 April signed an agreement to acquire control of Laminam SpA (and its subsidiaries Laminam Rus,

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Laminam USA Inc., Laminam China and Laminam Service) from the Stefani family and Alberto Selmi. This operation reflects Stefani’s desire to ensure the continuity of the companies he founded. “As I have stated repeatedly, my primary commitment is to guarantee the continuity of local manufacturing excellence in order to strengthen our leadership in the world market and create jobs,” Stefani said. “Following a careful analysis, we realised that

greatly to this with a 31.5% surge in revenue. The decline in revenue in the Tableware division was influenced by a range of factors, including the transition towards new distribution models in various markets, changes in the pricing and discount policy and optimisation of the store network. Revenue in Europe declined by 4.7% but increased in the US by 3.7% on a constant currency basis (-0.4% in nominal terms). Intensified e-commerce sales and marketing activities increased online revenue by 9.2% across all markets, with e-commerce activities now accounting for around 17% of the Tableware Division’s total revenue.

Investments in property, plant and equipment and intangible assets amounted to 43.6 million euros in the past financial year. The Bathroom and Wellness Division accounted for the majority of these investments (37.7 million euros or 86.5%), focusing on the acquisition of new production facilities for ceramic sanitaryware plants in Germany and abroad. The remaining 5.9 million euros was invested in new production facilities for the Tableware Division and optimisation of its retail network. For the current year, Villeroy & Boch’s CEO Frank Göringexpects to see growth of between 3% and 5% in consolidated revenue and EBIT.

distinguished scientists working at MIT's various Faculties and Schools. In perfect keeping with the MIT philosophy, the reason for exploring both the technological and organisational frontiers is to provide SACMI with suggestions for sound solutions that, if implemented, might have a considerable impact on SACMI'S various businesses. Membership will also allow SACMI personnel to take part in an ongoing programme of conferences and workshops. Moreover, an annual meeting will be held at MIT to focus on strategic planning. To follow, a MIT delegation headed by the Program Director and Faculty members interested in developing joint projects with SACMI will visit the company. SACMI will also benefit from close contact with MIT's “start-up

community”, a true “innovation ecosystem” made up of over 1,600 emerging businesses. Other opportunities stemming from the partnership include that of sponsoring individual firms or certain business genres to achieve specific technological and strategic development goals. Lastly, SACMI will be able to involve MIT personnel (students and researchers) not just in overseas research programmes but also in more finely targeted projects via a period of work at SACMI. Analogously, permanent training of team members (of pivotal importance to SACMI, which invests over 23,000 hours a year in learning) can be enhanced by accessing the various Continuous Learning programmes proposed by MIT.

Alpha was the right purchaser due to its international experience.” Alpha is a private equity group with a 2-billion-euro portfolio specialising in mid-cap operations in continental Europe. As part of the operation, which is expected to close before the summer break, CEO Alberto Selmi will further increase his stake in the group and will continue to lead Laminam together with the management team. “As ever, our goal is to be the global brand leader in the production of large ceramic surfaces and to exploit all the opportunities offered by this new market,” said Selmi, who also thanked Franco Stefani “for having

invented an innovative technology that together we have transformed into a new product category”. Thanks to the foresight of its founder, Laminam was the first company to introduction an industrial-scale production process for large ceramic surfaces, adopting globally unique cutting-edge technologies that allow ceramics to enter unconventional fields of application. The company now has a leading market position after posting excellent results in recent years, including consolidated revenue of around 110 million euros in 2018 (up 29% on 2017) and an EBITDA of approximately 26 million euros.

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News

Petitions filed against China tile imports United States

n April 10, 2019, Petitioner the Coalition for Fair Trade in Ceramic Tile filed a petition for the imposition of antidumping and countervailing duties on imports of Ceramic Tile the People’s Republic of China. Under U.S. trade laws, a domestic industry can petition the U.S. Department of Commerce (“DOC”) and U.S. International Trade Commission (“ITC”) to investigate whether the named subject imports are being sold to the United States at less than fair value (“dumping”) or benefit from unfair government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping or subsidization is occurring, but also that the subject imports are causing “material injury” or “threat of material injury” to the domestic industry. Chinese ceramic tiles have already been the subject of antidumping duties by the European Union, South Korea, Mexico, India, and Pakistan. The additional AD duties in these countries likely pushed Chinese ceramic tile exports away from these markets and resulted in increased export volumes to the U.S. market. Having seen how ceramic tile producers in other countries have used antidumping duties to limit Chinese imports into their markets, U.S. ceramic tile producers are now seeking their own antidumping and countervailing duties to protect the U.S. market. The merchandise covered by these investigations is ceramic tile.

Ceramic tiles are articles containing a mixture of minerals including clay (generally hydrous silicates of alumina or magnesium) that are treated to develop a fired bond. The subject merchandise includes ceramic flooring tile, wall tile, paving tile, hearth tile, porcelain tile, mosaic tile, finishing tile, and the like (hereinafter “ceramic tile”). All ceramic tile is subject to the scope regardless of whether the tile is glazed or unglazed, regardless of size, regardless of the water absorption coefficient by weight, regardless of the extent of vitrification, and regardless of whether or not the tile is on a backing. Ceramic tile is covered by the scope regardless of end use, size, thickness, and weight. For the avoidance of doubt, subject merchandise includes tiles pressed as very large single pieces, up to and exceeding 5’ X 15’. Subject merchandise includes ceramic tile produced in the People’s Republic of China (PRC) that undergoes minor processing in a third country prior to importation into the United States. Similarly, subject merchandise includes ceramic tile produced in the PRC that undergoes minor processing after importation into the United States. Such minor processing includes, but is not limited to, one or more of the following: beveling, cutting, trimming, staining, painting, polishing, finishing, or any other processing that would otherwise not remove the merchandise from the scope of

the investigation if performed in the country of manufacture of the in-scope product. The scope excludes ceramic bricks properly classified under HTSUS 6904.10.00.10 through 6904.90.00.00. Subject merchandise is currently classified in the Harmonized Tariff Schedule of the United States (“HTSUS”) under the following subheadings of heading 6907: 6907.21.10.05, 6907.21.10.11, 6907.21.10.51, 6907.21.20.00, 6907.21.30.00, 6907.21.40.00, 6907.21.90.11, 6907.21.90.51, 6907.22.10.05, 6907.22.10.11, 6907.22.10.51, 6907.22.20.00, 6907.22.30.00, 6907.22.40.00, 6907.22.90.11, 6907.22.90.51, 6907.23.10.05, 6907.23.10.11, 6907.23.10.51, 6907.23.20.00, 6907.23.30.00, 6907.23.40.00, 6907.23.90.11, 6907.23.90.51, 6907.30.10.05, 6907.30.10.11, 6907.30.10.51, 6907.30.20.00, 6907.30.30.00, 6907.30.40.00, 6907.30.90.11, 6907.30.90.51, 6907.40.10.05, 6907.40.10.11, 6907.40.10.51, 6907.40.20.00, 6907.40.30.00, 6907.40.40.00, 6907.40.90.11, and 6907.40.90.51. Subject merchandise may also enter under subheadings of headings 6914 and 6905: 6914.10.80.00, 6914.90.80.00, 6905.10.00.00, and 6905.90.00.50. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of these investigations is dispositive.

The Coalition for Fair Trade in Ceramic Tile (“FTCT”) member companies includes: American Wonder Porcelain; Florida Tile, Inc.; Crossville, Inc.; Florim USA; Dal-Tile Corporation; Landmark Ceramics; Del Conca USA, Inc. and StonePeak Ceramics. A large number of companies have been detailed in the petition, from both a foreign production/ exporter perspective and also as alleged importers of the products. As AC goes to press, the estimated schedule of investigations has been laid out as: • May 1, 2019 – ITC Staff Conference • May 24, 2019 – ITC preliminary determination • September 7, 2019 – DOC CVD preliminary determination (assuming extended deadline) • November 6, 2019 – DOC AD preliminary determination (assuming extended deadline) • March 20, 2020 – DOC final determination (extended and AD/ CVD aligned) • May 4, 2020 – ITC final determination (extended) • May 11, 2020 – DOC AD/CVD orders issued (extended) The Petitioner has calculated estimated dumping margins for China that range from 178.22% to 428.58%. Although Petitioner alleged numerous government subsidy programs that benefitted the Chinese wood cabinet industries, Petitioner did not allege a specific subsidy rates.

Kohler invests in new tunnel kiln Brazil

ohler, one of the world's foremost manufacturers of sanitary fixtures, kitchens and materials for interior design, recently installed an innovative Titanium tunnel kiln provided by B&T White in its Brazilian plant. The B&T White division of SITI B&T Group was chosen for its capability to propose technologies designed for high quality productions with improved energy efficiency. Since 2014, hundreds of Titanium burners and dozens of Titanium kilns

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have already brought significant reductions in energy consumption on ceramic tile kilns from SITI B&T. The same technology can also be used effectively on

tunnel kilns for sanitaryware built by B&T White, where it further improves the already high levels of energy performance. “The new Titanium kiln has been operating in our Brazilian factory since December 2017. We are satisfied because this technology has met our expectations” said Kohler. “We already have production data confirming important advantages in terms of energy consumption. “The energy saving we have experienced is around 20-

25% compared to other traditional SITI kilns in the market”. “The new kiln is able to operate providing the same or higher quality of product compared to a kiln that uses traditional technologies, and the quality of our products is at the same time very good”. “As we go forward, This technology allows us to have a higher range of possible configurations, providing greater flexibility, good quality and lower consumption versus traditional kilns” the company concluded.

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CMY

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News

Epicenter K opts for ceramic entry Ukraine

he Epicenter K Group, the Ukrainian retail giant with over 25,000 employees and some sixty shopping malls across the country, has selected SACMI to set up a complete ceramic manufacturing plant. Once up and fully running, it will produce a range of wall and floor tiles in various sizes, totalling some 12 million m2/year. The new factory has been built in Kalynivka, in the Kiev region, alongside the main Epicenter K logistic centre. This will let the firm self-manufacture ceramic items – already part of the product range

in its retail outlets – using the very best Italian technology. Two lines are currently undergoing final assembly: one will produce monoporosa wall tiles, the other large porcelain floor tiles. SACMI is supplying all the key parts of the lines, such as PH 6500 presses equipped with the new Powerlink automation feature. SACMI's latest-generation modular mills and spray dryers are also included in the order, as are two single-layer kilns – among the longest and most productive ever to be installed in Ukraine. Completing the plant is the SACMI

LB divests 60% of its current shares Italy

B Invest, the holding company of the LB Group (LB Officine Meccaniche, Sermat and Sitec), has sold 60% of its shares to Bac Due, a special purpose vehicle for club deal investors managed by Astraco, an independent advisory company that structures private capital investments. The deal was finalised on 2 April, creating – for the first time in 45 years – a new corporate structure consisting of Bac Due, Fimec 1 (Ligabue family) and Emilio Benedetti. The investment will maintain managerial and strategic continuity and involved the acquisition of a stake by Emilio Benedetti, who has been appointed CEO of the Group with responsibility for strategic and ordinary management of operations, and a substantial reinvestment by the family of Edoardo Ligabue who has taken on the role of project manager supervisor and a member of the board. “I am proud and honoured to have presided over another very important step forward in the growth and development of the LB Group,” said Emilio Benedetti. “Throughout our 45-year history, we have kept constantly ahead of our times, exploiting our inspiration and ideas to develop extraordinarily advanced solutions in terms of plant, mechanics, engineering and software. Thanks to our recent projects and the enormous human capital of the men and women who work with me, we are now

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capable of taking on new and highly diverse challenges. Thanks to its constant innovation, the LB group has been and will continue to be a global benchmark in the design and construction of plants for handling and processing raw materials in the ceramic, ready-mixed powder, granulation and mining sectors. We identified the Astraco Club Deal as the ideal partner for its high capacity for analysis, synthesis and management. It will certainly act as an accelerator in the pursuit of growth, development and diversification projects already under way and in achieving new goals and success.” Investors were particularly impressed by the business skills of the team at the helm of the LB Group, which in 2018 posted excellent results including consolidated revenues of 45 million euros and an EBITDA of 4.5 million euros. “I am very pleased that the second investment completed by Astraco involved a leading company in the Italian mid-cap segment,” said Nino Dell’Arte, founder and CEO of Astraco. “I firmly believe that the LB Group’s management team led by Emilio Benedetti is capable of pursuing an ambitious long-term international development programme for this successful Italian company in the field of engineering, installation and maintenance of hi-tech, highperformance industrial plants,” he continued.

H.E.R.E. Manufacturing Execution System, which ensures integrated, efficient control of the entire production process. Epicentr's global ceramic project, of which these two lines constitute just the first step, is an extremely ambitious one. The development plan will continue and be implemented very quickly. In addition to the mega-plant being established at Kalynivka, Epicenter K has also selected SACMI to carry out a second plant modernisation and renewal project at the Kalush manufacturing facility. This will involve the

installation of a new SACMI small-medium tile line configured for an output of 2.5 million sq metres/year. In parallel with these key orders, SACMI has decided to open an After Sales service centre in the nation's capital, Kiev. This will act as a hub for the entire country, providing customers with the support of local technicians and a spare parts warehouse. With SACMI Kiev, then, the Group is steadily improving its capacity to serve what is a key market, where local players are growing fast in terms of both quantity and quality.

Wedgwood confirms 100+ job losses United Kingdom

orld-famous pottery manufacturer Wedgwood has confirmed that 103 jobs will be axed at its Staffordshire site. The company’s Finnish owners Fiskars confirmed that almost a quarter of Wedgwood’s UK staff will be made redundant. Global marketing and product development will remain on-site. Ninety-seven jobs will be lost in manufacturing posts and a further six from restaurant operations at the company’s Barlaston site. The company says the cuts will “strengthen the long-term health of the business” as it tries to “reduce complexity” across its portfolio of companies, according to a consultation document published by Fiskars. Fiskars said that moving forward, manufacturing operations in Barlaston will focus on hand crafted, high-end products, including fine bone china. A consultation on job losses was launched in March this year which suggested that 145 positions could be axed, but this number has been reduced to 103. Ulla Lettijeff, president, living business, Fiskars Group said: “We have had to make difficult decisions to strengthen the longterm health of the business and

improve the competitiveness of the Wedgwood brand. “We recognise and value the substantial contribution made by all our employees, and are committed to providing a comprehensive package of support to those who are impacted by these changes. “We will also continue to develop our Barlaston site as a strong home for Wedgwood and as a visitor attraction.” Union GMB which represents a workers at Wedgwood factory, called the jobs losses “a scandal”. The union demanded that a £5m grant given to the pottery manufacturers in 2014 be returned, although according to the government announcement at the time of the grant, its purpose was to allow Wedgwood to safeguard 440 jobs and create 102 new ones in Stoke. Amanda Gearing, GMB senior organiser, said: “Obviously we’re happy that less of our members are about to have their jobs taken away from them – but it’s still devastating news. This is a company that received more than £5m of taxpayer cash to create and keep jobs in the potteries. “It’s a scandal of epic proportions – this money should be immediately returned to the public purse.”

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News

Dudson goes under as rivals buy up assets United Kingdom

istoric pottery firm Dudson has blamed cash flow pressures and deteriorating sales for its collapse. The Tunstall company revealed earlier today that it is making 318 workers redundant after falling into administration. Now a statement from administrators PwC has revealed the reason for the company's closure. Dudson has been manufacturing ceramic tableware in Stoke-onTrent for almost 220 years. PwC said that the company has experienced 'significant' cash flow pressures as a result of a deterioration in sales and increased costs. In recent weeks, management have explored a number of solutions to save the business - including the sale of the firm as a going concern. But a sale could not be achieved resulting in the company being placed into administration. Joint administrator Ross Connock said: “Unfortunately, due to challenging conditions it is not commercially viable to continue trading the company. "Despite best efforts to sell the business as a going concern, sadly it was not possible. Our thoughts are with the employees affected and we will support them at this difficult time. “Alongside supporting those staff affected, our focus will now be on realising value for creditors from the remaining assets, including property, stock and plant and equipment, as part of the administration.” At the moment, Dudson's Nile Street's factory shop will continue to trade.

In the meantime, Churchill China PLC has said it has already acquired certain assets from Dudson Holdings Ltd and Dudson Ltd for GBP2.1 million. Churchill China funded the acquisition of some of the two companies' tangible and intangible assets from its existing cash resources. The sum paid by Churchill China does not include the Dudson group operating businesses, the company clarified. Of the total, GBP1.5 million covered the acquisition of the Dudson brand and intellectual property in respect of two of Dudson's product ranges, Harvest and Evo. "The assets purchased are complementary to our existing strategic plan and will allow Churchill to further extend its offering of differentiated added value products," the company said. What went wrong? The collapse of Dudson has left many workers bemused, told, as they were, to not think about rumours circulating about the company. Indeed, just last year Dudson had been bullish about the future and talked about doubling in size over the next five years. The announcements had come on the back of a busy two years for the firm – and following an exciting announcement. At that time, the family-run company, had just announced an historic partnership with North America’s leading tabletop supplier, Arc Cardinal. The deal – which includes sales, marketing and distribution – will mean Dudson was able to offer a complete tabletop package to

Eurocolour shapes for the future Europe

ollowing a change to an independent legal entity, Eurocolour has taken on a new identity and structure. Some 27 companies and six associations from Europe and worldwide set up the new Eurocolour e. V. at its founding meeting earlier this year in Frankfurt at which Stefan Sütterlin of BASF Colors & Effects GmbH was elected president; vice-

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president is Dr. Heinz Zoch of Evonik Resource Efficiency GmbH. “With this step, we are strengthening the interest representation at the European level. This is of central importance in view of the rules and regulations in Europe and given the international activities of our industry” said Sütterlin. The organisation works as an umbrella group for the

its customers, including ceramic dinnerware, flatware and glassware. The future of this agreement, and whether it has formed part of the Churchill purchase (or indeed, if any other company were to acquire it) is uncertain. Paul Farrell, group sales director at Dudson, said at the time: “What has really changed for Dudson over the last two years is an understanding from our CEO Max Dudson and the other members of the Dudson family that the world is changing, and we have had to change with it. Innovation is the key to us moving forward. “We make the best products in the world, nobody can match Dudson because of the technical capability of our people. “But we are a business which arguably punches below its weight and that is something which is about to change.” Paul added: “A lot of businesses have the ambition to double in size, but in our case it is infinitely doable, both from a people and financial perspective. “Dudson’s biggest potential market is North America, we have had a presence there for about 30 years, but we have been looking for ways to take it to the next level and grow our business. “Our partnership with Arc Cardinal will allow us to offer the whole tabletop package and become more relevant to our customers, while securing the future of our factory in Stoke-on-Trent.” Over the previous two years Dudson – which boasted nearly 400 in its workforce – had made a number of changes as part of its plan to double in size. These included restructuring the

management team and bringing in non-Dudson family members for the first time. The company has also invested in product development, innovation and marketing, including the launch of a new magazine, new ranges and the development of customdesigned products for customers including Liverpool and Manchester City football clubs and high-end London hotels. One of the company’s most recent, and last, high-profile projects was a custom design to develop a nine-piece dinner set for use in the officers mess on the HMS Queen Elizabeth. Group marketing manager Alison Ratcliffe, said last year: “Since I joined Dudson two years ago we have had many discussions about what to do with the brand. We came to realise that Dudson is not seen as a ‘cool’ brand, so we got to work on repositioning ourselves and trying to change people’s perception of what Dudson is all about. “People buy with their eyes and that is why we have invested in marketing as well as our new magazine and our website. We want to showcase our products and show people that Dudson is becoming the go-to brand for chefs and restaurants all over the world.” “So it is a really exciting time for the business.” However, just six months later, the company has ceased to be and more than 300 skilled staff find themselves searching for work. In what was seen as a renaissance of UK-tableware in the last couple of years, this, along with news of job cuts at Wedgwood to be phased in this year, seems

manufacturers of pigments, dyes, fillers, frits, ceramic and glass colours and ceramic glazes in Europe and membership is open to companies who are active as producers of pigments, dyesstuffs, fillers, frits, ceramic and glass colours and ceramic glazes in Europe and national/worldwide associations that represent the mentioned products. First established in 2002 and newly formed just this year, the organisation aims to be a single voice and image promotion for the European industry producing

pigments, dyes, fillers, frits, ceramic and glass decorating colours and ceramic glazes. These ideas are to be achieved by: participation in the European legislative process; communication with stakeholders and consumer organisations; promotion of best practices for environment, toxicological and trade issues; maintenance relations with similar non-European associations; and the development of guidance to help members to implement regulations/to give guidance to members.

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Raw Material News

Saudi Arabian silica Resources and Potential

Mian K. Habib (Industrial Minerals Canada Consulting Inc.) discusses the extensive work undertaken in identifying and presenting high-grade silica resources on the Arabian peninsula... Saudi Arabia has abundant resources of silica sand, lump quartz and quartzite. After the formation of Saudi Geological Survey (SGS) in the year 2000, the exploration and evaluation of silica resources were intensified throughout Saudi Arabia. In general, Saudi Arabia can be divided into four geological units: 1) Arabian Shield (consisting Proterozoic – igneous and metamorphic rocks). 2) Sedimentary Cover Rocks (consisting mainly, limestone, sandstone, Orthoquartzite etc.) 3) The Empty Quarter. 4) Basalt Fields (Scattered mainly within Arabian Shield); Industrial quality silica sand in Saudi Arabia is sourced from sandstones that occur within Phanerozoic cover rocks bounding Arabian Shield in north, east and north-east. Most of these sandstones are white to off-white and loosely cemented (friable) in nature. However, well cemented Orthoquartzite are also found in some areas near Riyadh. All quartz resources, including quartz veins, homogenous pegmatite, zoned pegmatite and quartz floats occur within Arabian Shield.

Jabal Burmah Silica Sand (Riyadh)

Commercially exploited deposits

Jabal Burmah is located close to Jabal Ad Doghm area. This resource covered an area of about 5 sq km and carries more than 70 million tons of good quality, white industrial grade silica sand. Silica sand producers having world class silica sand processing plants in Riyadh area include: • Adwan Chemicals • Al Darees for Industry and Mining • Al Rasheed Silica Plant • Delmon Group of Companies

Riyadh Area

Al Butayn and Al Kharj area (Riyadh)

Riyadh area has been the centre of silica sand mining since half century. There are abundant resources of high quality silica sand in east and south-east of Riyadh. The Geological Formations that carries high quality silica sand is Biyad Formation. Silica sand processing to produce industrial grade silica sand started here towards the beginning of new millennium.

Al Butayn is located about 40 km NE of Riyadh. This area lies within Biyad Sandstone Formation that is the source of high quality silica sand in Riyadh area. Al Butayn area has been explored systematically and in detail and reported in Saudi Geological Survey’s literature. Al Butayn can be accessed by a network of paved roads. The whole area can be divided into two sub zones, Al Butayn and Al Kharj. The Al Butayn area has been recommended as the best location for industrial grade silica sand. 44 core holes were drilled in 1990s in 10 sections. The core holes were 1 km apart and of various lengths. The sandstone cores were studied geologically and analysed for chemical composition at 3 meters interval. On the other hand, Al Kharj area was reconnaissance surveyed and a total number of 38 core holes were drilled in two small areas. However, no details are found in SGS literature. Run of mine samples as well as washed samples of Al Butayn silica sand were analysed for chemical and textural composition. Chemical analysis of processed samples (0.1 mm to 0.5 mm fraction) shows that a simple washing and scrubbing using water decreases iron oxide from as high as 0.45% Fe2O3 to better than 0.02% Fe2O3. It looks like that

Ad Doghm Silica Sand Mining Complex (Riyadh) Ad Doghm silica sand area (Jabal Ad Doghm) is the best explored silica sand resource situated near Riyadh. A number of silica sand quarries are in operation here. Ad Doghm silica sand is pure white with low iron but considerable alumina content that is caused by the presence of kaolin clay. Although, kaolin can be produced as by-product of silica sand processing but silica sand producers have not put any effort in kaolin production on commercial scale. Kaolin is present in form of lenses, intercalations and pockets within silica sand. It is interesting that many ceramics manufacturers in Saudi Arabia and in RAK (UAE) buy this silica due to its high alumina content and some silica producer charge higher

prices on silica sand having 10-12 percent alumina. Based on the exploration drilling data on Jabal Ad Doghm, the silica sand resource covers about 8 sq km and carries more than 100 million tons of high quality silica sand. In 2016, the Saudi government has decided to close Ad Doghm silica sand mining complex due to its proximity to the city of Riyadh. Silica sand producers are relocating into other adjacent areas and the ministry will not renew the mining license once it is expired. This is pity that in this area at least three investors have world class silica sand processing and micronizing plants.

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in those days, t he chemical analysis was unable to detect Fe2O3 values of less than 0.02% because, all Fe2O3 values reported in the following tables is 0.02%. It would be very interesting to know if the sand can be processed to produce low-iron silica sand having Fe2O3 <0.01% for solar glass production. Based on the drill hole data (distance, depth and bulk density), a total indicated resource of 240 million tons of silica sand resource is determined within 44 core holes area that would be sufficient for next 250 years. Surprisingly, the Al Butayn area is prohibited for silica sand mining. The whole area is fenced and cannot be accessed. Saudi authorities should reconsider its decision and allow silica sand mining in this area especially after the closure of Ad Doghm. Saudi mining authorities should take action to capture the incoming low-iron silica sand market for solar glass. Al Butayn has shown that this sand can easily be processed to produce low-iron silica sand. Riyadh silica resources are close to the export market of UAE and Rasul Khaimah (RAK) which is the centre of glass and ceramics industry. Silica sand from this area is exported to RAK and other UAE locations since long time. However, after the closure of Ad Doghm area, the RAK market is partly occupied by Egyptian silica sand which is shipped to RAK on large vessel through Red Sea. Saudi Arabian mining authority should take this matter seriously and urgently. Saudis need to improve their logistic facilities to export silica sand to RAK and UAE not only from Riyadh area but also from Taymah.

Taymah silica sand at places generally carries high alumina contents that indicate the presence of kaolin in the sandstone matrix. Nonetheless, no silica sand producer has extracted kaolin as a commercially viable by-product of silica sand mining. Taymah area is also famous for translucent to milky quartz cobbles which are scattered on sandstone surface. These quartz cobbles are also not mines on commercial scale.

Other in Tabuk Many silica sand resources are investigated near Tabuk in 1990s. The most important industrial grade silica sand bearing geological formations in this area include Ram and Umm Sahm sandstones outcropping NNW-SSE some 20-30 km west of Tabuk. 19 surface samples were collected during exploration stage and the chemical analyses are shown in the following table. These deposits represent generally very high quality silica sandstones with the exception of the Wadi Al Arnab locality. Fe2O3 levels for the other locations are for as run-of-mine samples very pure sandstones this area is considered as prime area for high quality silica sand mining. The area is unmeasured but extremely large and covers an area of several hundred km2 and sandstone thickness exceeds 25 m which will give a very large resource. Silica samples from Tabuk Location

Wadi Alhaddat

Tabuk Area Taymah South (South of Tabuk) Taymah area was explored for commercial silica sand several times during 1990s. In 1997, thirty surface samples were collected from about 50 km south of Taymah in an area of 80 square kilometres. These samples were studied mineralogically and analysed chemically, however; these samples were not processed before analysing. The thickness of sandstone in this area ranges between 2 to 20 meters and taking an average thickness of 5 meters, a silica sand resource of 400 million tons is estimated. In the year 2000, Taymah south area was revisited and explored in detail. A total number of 40 exploration drill holes were executed in an area of 280 square kilometres in South Taymah. All forty (40) core holes were located in east side of paved road running in north-south direction and joining Tabuk with Al Madinah area. In general the holes were drilled down to the depth of 25-30 meters. A resource of 6000 million tons silica sand has been estimated in this area. In year 2001 another 50 exploration cored holes were executed in the western side of road joining Tabuk with Al Madinah. The exploration was undertaken in 210 square kilometre area. The depth of holes ranges between 25-30 meters. An indicated resource of 6000 million tons was reported in the explored area. The high quality silica sand in Taymah area lies within Phanerozoic Saq Sandstone Formation that is 880 meter thick in south of Taymah.

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Jabal Al Fauha

Wadi

Sample #

SiO2%

Fe2O3%

Cr (ppm)

131â&#x20AC;&#x201D;1

99.80

0.02

131-2

99.60

0.02

131-3

98.10

0.03

154

98.10

0.13

155

99.60

0.04

156

98.60

0.03

159-2

99.20

0.03

157-1

99.80

0.03

Ratamah

99.80

0.04

In Tabuk area, Wadi Al Haddat and Jabal Fauha areas are the best localities for high quality silica sand production. However, in the Tabuk area, there are only a few silica sand producers due to its remote location from the existing glass and ceramics industries.

Al Jawf Area (North Saudi Arabia) Domatul Jandal The Al Jawf area has been explored repeatedly in 1990 but usually for kaolin. However, silica and kaolin occur intercalated in many of the sequences explored and both may be economically viable. In early 2000, Domatul Jandal area, (30 km south of Domatul Jandal Town) was explored on both sides of newly built train track laid down for Phosphate transportation to east coast industrial city of Rasul Khair. A total number of 27 cored holes were drilled in 60 square kilometre area within Al

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Maleeh deposit. The bore holes were located 3 km apart and drilled down to 25 meter depth. Silica sand below the red dune sand is very white with traces of kaolin. The samples were analysed without processing and the evaluation of this resource were not done properly. Silica sand was not tested for Frac Sand applications and for non-glass uses. This area needs more attention as it is closer to Saudi Aramco’s unconventional gas production site and closest to the newly developed Industrial City of Wada Ash Shamal. An indicated resource of 160 million tons is revealed in this location.

investors are looking for alternate silica resources around Riyadh. The most attractive and potential areas near Riyadh are located in east and south-east of Riyadh. Bani Tamim, Al Falaj and Al Kharj areas are among the most potential areas for high quality silica sand. These areas are also important due to their vicinity to RAK and UAE markets. The newly explored area of Bani Tamim and surrounding region is a very large area extended southwards into Wadi Ad Dawasir. A total resource of 500 million tons of high quality silica sand can be expected in this area.

Markets and uses

Current exploration Due to the closure of Ad Doghm silica sand mining complex near Riyadh, the silica sand producers and new

Presently, more than 50% of silica sand mined in Saudi Arabia is dry screened and carries 350-600 ppm Fe2O3. There are 6 large sized world class wet processing plants in Saudi Arabia which produce high quality silica sand mostly for clear float glass and other industrial uses. On an average these plants produce about 120-150 tons silica sand per hour. In addition to glass sand, the other most important use of silica sand is the production of silica flour which is sold at domestic as well as export market for filler applications, additive in oil-well cementing, fiberglass, ceramics, paints, rubber, plastic etc. Silica sand is also used domestically and exported for use in filtration sand, swimming pools, casting, refractory products, golf courses etc. There is one producer of silica chemicals in Saudi Arabia.

Principal silica consumers

• Arabian United Float Glass Company, KSA • Al Obeikan Float Glass, Yanbu, KSA • Saudi Guardian Float Glass, Jubail, KSA • RAK Ghani, RAK • Guardian Glass, UAE • ARC International • Al Tajir Glass, Jabal Ali • Frigo Glass, Jabal Ali • 12 ceramics and porcelain manufacturers in KSA and UAE • 3 Fiberglass producers • Water Filtration units / Municipalities • Export and others Total silica sand and silica flour from Saudi Arabia > 15,000 tons / day

More information:

For more details on the development or sourcing of silica from Saudi Arabia, please contact: Mian Habib INDUSTRIAL MINERALS CANADA CONSULTING INC (IMCC) 3 Tanager Ave, Hamilton, ON L9A 2M2 Canada +1 289 674 1490 mian@indmin.ca

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Mian Habib has over 30 years experience in industrial mineral resources including 17 years of Saudi industrial minerals exploration, evaluation and converting cheap mineral commodities to mineral specialties for niche markets. Mian Habib has sound knowledge and experience of South-East Asian and Middle Eastern industrial minerals resources especially silica sand and lump quartz. IMCC conducts exploration, sampling, testing and evaluation of your industrial minerals resources. IMCC will lead you to the new business venues, modern uses and products and emerging markets in industrial minerals.

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News Anaylsis

News

The return of Phu Lang

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olouring is among the final steps of making a ceramic painting, now among the best-selling items in Phu Lang Village in Que Vo District, Bac Ninh Province. Viet is among the younger generation in the village who are giving pottery, a craft that has been passed down for generations over the last 700 years, a modern twist. “One of the key things in this industry is that you have to keep ahead of the ever-changing tastes of customers. People now are looking for quality products so we have no choice but to create new designs,” said Viet. As a native of Phu Lang where most local households own a kiln, Viet has grown up with ceramics. Firing clay was part of his childhood as he worked part-time at his uncle’s ceramics workshop while still at high school. A typical day for him at the time was divided into two parts: school in the morning and the workshop in the afternoon. In his small workshop full of brushes, paint and clay, there are ceramic paintings ranging from 0.420 square metres. Viet works on an average of 100sq.m. of paintings every month. The high season is from October to January before the Lunar New Year. The costs range from VND150,000 to 50 million (US$6-2,100) depending on the size and complexity of the painting. His business now provides stable jobs for four staff with monthly incomes of VND7-10 million each, which is quite a decent salary, given the GDP per capita in the district in 2018 was about $2,500. Besides paintings, he also makes decorative ceramic items, which can be displayed in houses, offices, restaurants or hotels. Viet is one of many young people who are following in the footsteps of Vu Huu Nhung, also a native of Phu Lang. Nhung, a lecturer at UIFA, was the first in the village to turn local ceramic into works of art. He started by making figurative pots and vases with complex patterns, abstract decor and vibrant colours. His products, ranging from

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500 to thousands of dollars, are sold to high-end clients including collectors in Vietnam, the US, South Korea and Japan. Nhung is eager to put local ceramics on the world art map. “I want to take Phu Lang ceramics to a new level. I want our trade to be known and remembered as something unique, skillful and high quality rather than mass produced,” Nhung told Việt Nam News. Nhung started his own business

IF YOU CHOOSE MASS MANUFACTURING OVER LIMITED EDITION GOODS, IT RELIES A LOT ON THE CUSTOMERS. after graduating with a sculpture major from UIFA in 1999. While local households only produced everyday items like flower pots and jars, Nhung focused on decorative items such as vases and paintings. When his business was at its peak, he had more than 100 workers. Yet in 2010, Nhung decided he had to do something more with local ceramics. He decided it was time to start creating limited edition products. “If you choose mass manufacturing over limited edition goods, it relies a lot on the customers. The products are based on their tastes and preferences. But when it comes to artwork, there’s more room for creativity. It’s your own work of art so it has higher value,” he said. Nhung wanted others to follow in his path but it was ‘difficult’ because mass production generates faster benefits. “People keep saying that we need to preserve the tradition but they

might not fully understand what tradition means. I think tradition is something that we create ourselves. Let’s say, if more people start turning ceramics into works of art, then making ceramic artworks will become a tradition of Phu Lang in the next ten or twenty years,” said Nhung. In his opinion the younger generation today enjoys both advantages and disadvantages. “Nowadays, infrastructure and technology help a lot. Improved quality of life also pushes demand for ceramic products. However, one of the biggest challenges still lies in funding. A young person might not have the money to pay staff or rent a workshop. But once they overcome these problems and don’t have to worry about financial issues, I believe Phu Lang ceramics will have a new face in the next few years,” Nhung said. Phu Lang, about 60km from Hanoi, is among the three ancient ceramic centres in the Red River area (along with Bat Trang in Hanoi and Tho Ha in Bac Giang Province). It is believed locals started making ceramic products some 700 years ago, according to Nguyen Minh Ngoc, chief of Phu Lang Village. Phu Lang has long been known for its everyday items like flower pots, jars and vases. In the early 21st century, given the availability and low cost of items made of plastic, metal and glass, the demand for Phu Lang ceramics declined dramatically. Many left the village to work in big cities or shifted to new jobs. In the late 2000s, the younger generation like Nhung brought a breath of fresh air to the village by diversifying the products. Following in Nhung’s footsteps, young students from the village have studied ceramics and sculpture and returned to their hometown to start their own businesses. In 2018, there were more than 300 households in the village making ceramics, and total revenue hit VND130 billion ($5.5 million). Local ceramic products which include both everyday items and artworks have been exported to the US, Japan and South Korea, according to Ngoc.

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Analysis: Porcelain tiles

The buildi commerical construction boosts porcelain tile

Yogender Malik looks at how Southern Asiaâ&#x20AC;&#x2122;s porcelain tile manufacturers are evolving their product offering to encompass a higher quality range and ever-larger sizes.

he Southern Asian ceramic tile industry comprising of India, Bangladesh, Pakistan and Sri Lanka - has emerged one of the largest region of ceramic tile production and consumption in the entire continent. With a cumulative population of 1,664 million ( India 1280 million, Bangladesh 165 million, Pakistan 197 million and Sri Lanka 22 million ), the region is expected to be the largest demand driver for ceramic tile industry in coming years. Led by India, which has emerged as the second largest global producer and consumer, South Asian ceramic tile production has registered annual growth rates of more than 8 % in each of the last five years. Ceramic tile production and consumption is expected to see steady growth rates for a number of years as the current per capita consumption in all the three countries is very low as compared to global and Asian per capita tile consumption average. On cumulative basis, these three countries accounted for an estimated 1.38 billion square meters of ceramic tiles in the year 2018.

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Production focus

South Asian ceramic tile producers have increasingly shifted their production towards the production of higher quality porcelain tiles in recent years. A decade back, most of the ceramic tile production in these countries was dedicated to basic ceramic tiles. However, with advances in production technology and increasing usage of ceramic tiles in the high traffic areas such as commercial spaces, South Asian ceramic tile producers have started to focus on production of porcelain tiles. Most of the established tile producers have upgraded or modernised their production plants to enable them to produce high quality porcelain tiles in recent years.

Porcelain tiles in India

Indian ceramic tile industry has registered very steady growth rates in terms of production in last few years. With an estimated production of 1,064 million square meters ( provisional figures) of ceramic tiles in the year 2018, the country is second largest global producer of ceramic tiles. Along with the increase in production volumes in

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Analysis: Porcelain tiles

ing boom recent years, Indian ceramic tile industry has increased the scope of production. Production of higher value added products such as porcelain tiles, large sized tiles and double charged tiles has increased year on year due to increased demands of these value added products. According to Dinesh Vyas, VP Marketing at Indian tile producer, H & R Johnson, “The demand for ceramic tiles, especially porcelain tiles is expected to grow substantially as a result of rising investments in commercial spaces as well as projects like airports, hospitals, hotels and construction project investments. The growing demand is also bringing with it changing dynamics and new trends. Talking about the latest trends in India – the natural look of marbles, stones and wood are seeing an increasing preference in ceramics aided by the high resolution printing technology. Another overall trend is to move away from too much of shine. Matt and rustic finishes are in trend. Glazed porcelain category in flooring is emerging fast because of surface enhancement possibilities that it offers. The germ-free tiles or the antiskid tiles are also much in demand. Along with the look and feel of flooring, consumers today also consider functionality as the key factor while choosing tiles. There is also an increasing trend towards large format tiles and slabs like 120 X 80, 120 X 120 and 120 X 240 cms which provide a more seamless and premium look to the floors.” Major ceramic tile producers are increasing the share of porcelain tiles in their total output. In order to give an idea to our readers, we are presenting the output mix of different types of tiles by leading ceramic

producers over the years. The country’s largest ceramic tile producer Kajaria Ceramics produced a total of 71.96 million square meters of ceramic tiles in the financial year 2017-18. Ceramic wall and floor tiles output stood at 34.68 million square meters, followed by polished porcelain tiles at 22.74 million square meters and glazed porcelain tiles at 14.54 million square meters. On percentage basis these three segments accounted for 48.19 %, 31.12 % and 20.69 % of the total output of ceramic tiles of the company. The company recently approved (February 2019) the expansion of capacity of manufacturing polished porcelain tiles at the existing facility at Malutana, Rajasthan from 6.50 million square metres per annum to 12.10 milion square metres per annum. The new capacity will commence commercial production by March 2020. Kajaria is also setting up a new manufacturing plant at Tirupati in the southern region of the country. This plant will have an installed capacity to produce about 4 million square meters of glazed porcelain tiles and is likely to commence production during the current year. The new plant will cater to the demand from southern markets. Kajaria Ceramics is the largest manufacturer of ceramic and porcelain tiles in India. It has an annual aggregate capacity of 75 million square meters, distributed across seven plants - Sikandrabad in Uttar Pradesh, Gailpur & Malootana in Rajasthan, three plants in Gujarat and one at Vijayawada in Andhra Pradesh.

A comparison of majors Company

Kajaria Ceramics

FY 2015

FY 2017

FY 2018

Ceramic Tiles- 48.66 % of total tile sales Ceramic tiles- 47.60 %

Ceramic tiles- 48.19 %

Polished porcelain tiles- 34.75 %

Polished porcelain tiles- 31.12 %

Polished porcelain- 33.77 %

Glazed porcelain – 16.58 %

Glazed porcelain- 18.63 %

Glazed porcelain- 20.69 %

Ceramic tiles- 43 %

Ceramic tiles- 36 %

Ceramic tiles- 38 %

Polished porcelain tiles- 30%

Polished porcelain tiles- 17 %

Glazed Porcelain tiles- 14 %

Glazed porcelain tiles- 19 %

Glazed porcelain tiles- 26 %

Asian Granito Double charged tiles- 13 %

Double charged tiles- 21 %

Double charged tiles- 19 %

Ceramic tiles- 46.0 % of sales contribution

Ceramic tiles- 38.7 %

Polished porcelain tiles- 33.4 %

Polished porcelain tiles- 32.6 %

Glazed porcelain tiles- 19.9 %

Glazed porcelain tiles- 18.7 %

Rest is contributed by sanitary ware & bath fittings

Rest 10 % is accounted by sanitary wares

Polished porcelain tiles- 33.4 % Somany Ceramics Glazed porcelain tiles- 15.2% Rest 5.4 % is contributed by sanitary ware

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AC 19-4

asian ceramics

Analysis: Porcelain tiles

Much like other ceramic tile producers, country’s another major producer Somany Ceramics has increased its output of porcelain tiles in recent years. According to Abhisekh Somany, Managing Director of Somany Ceramics, “ We have carried out modernisation of five manufacturing lines across two plants. It will graduate the lines to manufacture larger and premium range of tiles with a corresponding increase in realisations. We are also setting up a new plant ( in a joint venture) of 3.5 million square meters will be among the first glazed vitrified tile capacity in South India, creating a first-mover’s advantage for us. We have made an unprecedented investment of INR 100 crore in 2017-18, which was higher than the aggregate investment of the previous four years.” In March 2019, Somany Ceramics started production of glazed porcelain tiles from its new plant ( a JV) based in Chittoor district of Andhra Pradesh. The JV company, Sudha Somany Ceramics Private Limited has an installed capacity of 3.5 million square meters of glazed porcelain tiles per annum. Somany Ceramics holds a 60% stake in SSCPL, and the remaining 40% stake is held by Sudha Agro Oil and Chemical Industries Limited. SSCPL’s entire production is sold to Somany Ceramics Limited. Somany Ceramics Limited is India’s second largest manufacturer of tiles with a manufacturing capacity of 61 million square meters. The Company has its own tile manufacturing units in Kadi (Gujarat) and Kassar (Haryana). It also has six associate/subsidiary plants manufacturing tiles and one subsidiary plant, manufacturing sanitary ware. Anil K. Beejawat, Group CEO, Simpolo Vitrified Pvt Ltd, one of the leading ceramic tile producers from Morbi says, “Ceramic tile industry in the country has not just changed, it has witnessed a revolution in the last decade. On the usage front, today tiles have evolved from just bathrooms and kitchens applications, to a stage where the product is increasingly being seen as a substitute for practically any surface covering in building space, both indoors as well as outdoors. Porcelain tiles have become very popular on account of their appearance, usefulness and longevity.” He further says, “On the technology side, the energy efficient firing mechanisms have made it extremely cost effective to produce near zero water absorption porcelain tiles, ranging from 3mm-30mm thickness. Through a combination of innovative raw materials, tiles can be made so strong that solutions like marble and granite fall short in competing with these tiles on most of the specifications which are crucial and critical for various surface covering usages.” In addition to these major players, a number of small players, who have commenced commercial production in recent years have focussed on producing porcelain tiles. AC interacted with four small ceramic tile producers from Morbi, who have entered into ceramic tile manufacturing in last two years to know about the state of porcelain tile production in the heart of Gujarat. Vinod Patel, CEO cum Owner of White Pearl Ceramics told, “ We have entered into ceramic tile production in the year 2018 with an installed capacity of 2.1 million square meters of polished and glazed porcelain tiles. We decided to invest in porcelain tile production, as demand and price realisation from this subsegment is higher as compared to basic ceramic tiles due to product superiority and long life of these products.”

Porcelain tiles in Bangladesh

Bangladesh's ceramics industry has experienced steady growth in production in the last five years. Catered by more than 30 ceramic

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DEMAND FOR PORCELAIN TILES IS GROWING SUBSTANTIALLY DUE TO INVESTMENTS IN COMMERCIAL SPACES

tile producers, the country has an installed capacity to produce about 128 million square meters of ceramic tiles per year. According to Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), “ The growth momentum is expected to sustain for a considerable period of time thanks to the robust development of the real estate sector and rising living standard of the people in the country. Despite the steady growth in ceramics tile manufacturing industry in Bangladesh, country still imports between 25-35% of the tiles consumed to fulfil the demand.” RAK Ceramics Bangladesh, which is among the largest producer of ceramic tiles in Bangladesh has focussed on producing porcelain tiles. With annual sales of BDT 6.83 billion in the year 2018, the company claims to have about 22 % of domestic ceramic tile market share. The company has an installed capacity of 10.32 million square metres. In 2018, the company produced 8.57 million square metres. According to company’s management, “The biggest factor that ensures the strongest differentiation for RAK Ceramics Bangladesh is its wide product portfolio comprising ceramics and porcelain tiles. We have over 2,500 models active in the ceramic and porcelain tiles business, and regularly introduce new designs that are closely aligned with evolving consumer trends.”

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Analysis: Porcelain tiles

In late 2016, RAK Ceramics Bangladesh augmented its installed capacity of porcelain tiles. The company installed a new production line capable of producing 12,500 square meters of porcelain tiles per day, taking the overall capacity of the company in Bangladesh to 32,000 square meters of floor and wall tiles. According to Imtiaz Hussain, CEO of RAK Ceramics Bangladesh, “With 1231 people per square meter, Bangladesh is one of the most densely populated countries of the world. Our GDP growth is also among the top five countries of the world. In China per capita tiles consumption is 0.5 square meter; in India it is 0.2 square meter and in Bangladesh, it is less than that. Besides, in case of purchasing power parity, Bangladesh stands at 32nd position in the world with a continuous increase in per capita income. These figure make me hopeful about the future growth of ceramic tile industry in the country.” S K Bashir Uddin, Managing Director of Akij Ceramics, one of the largest ceramic tile producers in the country say, “ Ceramic tile industry in Bangladesh has huge growth potential. The number of households will also increase from 32 million to 43 million by 2025, according to a survey of the Bangladesh Bureau of Statistics. Households are gradually shifting from wooden and corrugated sheets to brick and concrete. By 2025, brick-built houses will account for 24 percent of all households in Bangladesh from 13 percent in 2011. Higher quality ceramics tiles, such as porcelain tiles are expected to get more popular in coming days.” Star Ceramics, another leading and fast growing ceramic tile and sanitary ware producer from Bangladesh has also concentrated on the production of porcelain tiles in the country. According to Syed A. K. Anwaruzzaman, key executive from the company, “Star Ceramics has been able to acquire 16 per cent of the domestic tiles market and 9.0 per cent sanitary ware market. The current production capacity of the factory is 22,000 sqm of tiles a day. We expect to acquire sustainable market share on the domestic market and raise our exports by continuing to explore the potential markets abroad in the near future."

Leading ceramic tile producers in Bangladesh Company

Location

Installed capacity

RAK Ceramics Bangladesh

Mawna, Sreepur, Gazipur

10.32 million square meters/ annum

Great Wall Ceramic industries Limited

Gazipur, Gilarchala, Sreepur

10 million square meters/year

Mymenshingh, Trishal

10 million square meters/ year

Mir Ceramics Limited

Mawna, Sreepur, Ghazipur

9 million square metres/ year

China Bangla Ceramic Industries Limited

Tarabo, Rupganj, Naryanganj

6 million square metres/ year

Fu- Wang Ceramic Industry Limited

Hotapara, Sreepur, Gazipur

6 million square metres/ year

Madhumati Ceramics Limited

Ganda, Savar, Dhaka

5 million square metres/ annum

ATI Ceramics Limited

BK Bari, Vawal, Mirzapur

5 million square metres/ annum

X Ceramics Limited

Boherar Chala, Sreepur, Gazipur

4 million square metres/ year

Hua Thai Ceramic Industry Limited

Hotapara, Sreepur, Gazipur

5 million square metres/ year

Sun Power Ceramics Company Limited

Hotapara, Sreepur, Gazipur

6 million square metres/ year

Dhaka Shanghai Ceramics Limited

Savar, Dhaka

5 million square metres/ year

Star Ceramics Private Limited

Madahabpur, Hobiganj

7 million square metres/ year

Bangladesh Taiwan Ceramic Industry Company

Sonargaon, Naraaynganj

4 million square metres/ year

Akij Ceramics Limited

Pakistan

Despite, being the second largest country in South Asia in terms of geographic spread and population, Pakistan ranks third in ceramic tile production among the three major South Asian nations. With an installed capacity of 70 million square meters per annum through seven major ceramic tile producers, Pakistani ceramic tile industry has struggled in recent years due to slow off take in domestic market and influx of cheap imports. Though, consumption of ceramic tiles registered steady growth in 2018 on account of China-Pakistan Economic Corridor (CPEC), which has led to brisk construction activities in some parts of Pakistan. Demand in the country stood at 69 million square meters during the year 2018. Though, theoretically the gap between demand and supply is not very wide, but most of the Pakistani ceramic tile producers are running at low capacity levels as cheaper imports of ceramic tiles from China and Iran has rendered their operations unprofitable in recent years. Fresh capacity addition in the industry has come at a very slow pace, as compared to other countries in the Asian continent. Gujranwala based Master Tiles; the largest ceramic tile producer in the country had a market share of about 22 % of the domestic market, while the second largest producer Shabbir Tiles had a market share of about 16 % in the year 2018. Leading Pakistani ceramic tile producers have gradually migrated towards production of porcelain tiles in recent years. 38

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Leading ceramic tile producers in Pakistan Company

Location

Capacity

Karachi

13 million square meters / annum

Karachi

6 million square meters/ annum

Peshawar

6 million square meters/ annum

National Tiles & Ceramics Limited

Karachi

8 million square meters/ annum

Master Tiles & Ceramic Industry

Gujaranwala

16 million square meters/ annum

Gujaranwala

600,000 square meters/ annum

Jahangir Pura

500,000 square meters/ annum

Gujaranwala

4,000 square meters/ day

Shabbir Tiles & Ceramic Industries Karam Ceramics Limited Frontier Ceramics

Makkah Tiles SWAT Ceramics Sonex Tiles & Ceramics Industries

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Analysis: Porcelain tiles

In 2017, Master Tile acquired a new production line with an installed capacity of 24,000 square meters of porcelain tiles in sizes up to 800 by 800 cm. With this expansion, Master Tile’s production facility in Gujranwala, Punjab, has a total installed capacity of 50,000 square meters per day. This expansion has enabled Master Tile to strengthen its leadership position in terms of both quality and output. The main characteristic of the plant designed and built by leading European technology supplier is its versatility in producing high quality porcelain tiles. The new plant is fully automated – from raw materials weighing through to palletisation of packaged boxes. Country’s second largest ceramic tile producer, Shabbir Tiles & Ceramic Limited, which operates production plants in Karachi and Lahore invested PKR 910 million towards capacity up-gradation and modernisation. The company has invested in production facility to produce porcelain tiles. According to Masood Jaffrey of Shabbir Tiles & Ceramic Limited, “ There are certain elements that are needed to make porcelain tiles. Our quality standards are better than our competitors and we stringently monitor these standards. We have also attained a certification from an Italian lab Centro Ceramico, recently that verifies that we are producing genuine porcelain tiles. The water absorption for our porcelain tiles is less than 0.5 percent; in any case, most tile

manufacturers are focusing on ceramics. Genuine porcelain tiles last longer; there are less number of stains with reduced wear and tear.”

Sri Lanka

Much like their counterparts in other South Asian countries, Sri Lankan Table 1 ceramic tile producers have concentrated on the production of high Indonesia 62,242,266 quality porcelain tiles to meet the growing demand from residential and India 6,278,568 Malaysia 22,520,228 in the country. commercial constructions Vietnam 28,137,821 Sri Lanka Country’s leading ceramic tile producer Rocell invested in 11,527,872 Philippines 72,936,507 2017towards increasing Bangladesh 9,963,651the proportion of porcelain tiles in the country. Thailand

40,439,583

Selected unglazed tile exports from China (sq metres) by destination

Table 1

India: a real estate focus

The real estate sector is one of the most globally recognized sectors. Real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. It is also expected that this sector will incur more non-resident Indian (NRI) investments in both the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

2015 2016 2017 2018

23,135,776 34,606,685

59,910,220

273,980,510

India: total unglazed tile exports (sq metres)

Market Size

Real estate sector in India is expected to reach a market size of US$ US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 per cent of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs. Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Commercial office stock in India is expected to cross 600 million square feet by 2018 end while office space leasing in the top eight cities is expected to cross 100 million square feet during 2018-20. Co-working space across top seven cities has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.

Table 1 2015 2016 2017 2018

11,237,232 14,562,772 24,311,943 31,554,996

Indonesia: total unglazed tile imports (sq metres)

Investments/Developments

The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. Between 2009-18*, Indian real estate sector attracted institutional investments worth US$ 30 billion. Private Equity and Venture Capital investments in the sector reached US$ 4.47 billion in 2018 and US$ 546 million in Jan-Feb 2019. 1

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AL-JAWDAH PORCELAIN & CERAMIC CO.

AL-JAWDAH PORCELAIN AND CERAMIC CO.

‫ﺷرﻛﺔ اﻟﺟودة ﻟﻠﺑورﺳﻼن واﻟﺳﯾراﻣﯾك‬

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Tel: 00966-11 265-0228 Fax: 00966-11 265-0158 Email: info@aljawdahgroup.com 00966-11 265-0159 265-0160 Website: www.aljawdahgroup.com

Analysis: Porcelain tiles

According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.91 billion in the period April 2000-December 2018. Some of the major investments and developments in this sector are as follows: • Housing launches across top eight Indian cities increased 75 per cent in 2018 to 182,207 units. • In March 2019, Embassy Office Parks, India’s first real estate investment trust (REIT) went public. • Warehousing space in top eight Indian cities increased 22 per cent y-o-y in 2018 to 169 mn sq. ft. • Around 5.1 million sq. ft. of retail space became operational in top seven Indian cities in 2018. • In May 2018, Blackstone Group acquired One Indiabulls in Chennai from Indiabulls Real Estate for around Rs 900 crore (US$ 136.9 million). • In February 2018, DLF bought 11.76 acres of land for Rs 15 billion (US$ 231.7 million) for its expansion in Gurugram, Haryana.

The company invested SLR 1.2 billion to increase the overall installed capacity by 35 %. The expansion was completed in October 2017. Acording to the company’s management, “One of the advantages of the expansion is the factory’s ability to increase production of full body porcelain floor tiles for which there is high demand in the market.” Tablefactory 1 Rocell’s first (Royal Ceramic Lanka, RCL) began production in 1992 in Eheliyagoda and produces full-body and glazed porcelain tiles. 2015 684,267 This was followed in871,096 2002 by the start-up of the Horana facility for the 2016 2017 10,646,163 production2018 of glazed porcelain and single and double fired tiles. 9,693,625 Indonesia: total unglazed tile exports (sq metres)

Government Initiatives

The Government of India along with the governments of the respective states has taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for the real estate companies. Below are some of the other major Government Initiatives: • Under the Pradhan Mantri Awas Yojana (PMAY) Urban, more than 6.85 million houses have been sanctioned up to December 2018. • In February 2018, creation of National Urban Housing Fund was approved with an outlay of Rs 60,000 crore (US$ 9.27 billion). • Under the Pradhan Mantri Awas Yojana (PMAY) Urban 1,427,486 houses have been sanctioned in 2017-18. In March 2018, construction of additional 3,21,567 affordable houses was sanctioned under the scheme.

Table 1 2013 2014 2015 2016 2017

22 23 28 28 27

India: commercial space demand, top 8 cities (m. sq ft)

Road Ahead

The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform which will help in allowing all kinds of investors to invest in the Indian real estate market. It would create an opportunity worth Rs 1.25 trillion (US$ 19.65 billion) in the Indian market over the years. Responding to an increasingly well-informed consumer base and, bearing in mind the aspect of globalisation, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralised processes to source material and organise manpower and hiring qualified professionals in areas like project management, architecture and engineering. The growing flow of FDI into Indian real estate is encouraging increased transparency. Developers, in order to attract funding, have revamped their accounting and management systems to meet due diligence standards.

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Table 1 2012 2013 2014 2015 2016 2017

188 203 212 219 232 246

India: no. of new malls constructed

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Analysis: Porcelain tiles

Summary of Bangladesh tile sector: position in financial year (July-June) 2017-2018 US$1=Bangladesh Taka 80 (estimated exchange rate of 2017-2018) Number of Industries Product

Investment/

Yearly Production Capacity

Direct Employee

195.30 Million Sq Metres

19,845

Project Value

Import

Export

Local Sale

Turnover

Market Share %

Million Taka

9,827.60

18.50

31,434.00

31,452.50

Local

Foreign

76.18

23.82

(Million BDT) 28

49,750

Tiles

(More (US$621.87 (US$122.84 (US$0.231 (US$392.92 (US$393.15 factories in million) million) million) million) million) pipeline) Source: BCMEA. Note: The main source of imported tile is China. A few are shipped from Italy, Spain, India, Indonesia, Malaysia, Thailand, Vietnam and others.

Bangladesh ceramic tile markets position Current (2019) exchange rate: US$1=Bangladesh Taka 83 (estimated) Sl

Financial Year (July-June)

Export

Import

Local Sale

Million

Value

Growth

Value

Growth

US$

Million Taka

Million Taka %

Domestic Market Share

Value

Growth

Market

Local

Million Taka

Consumption % in Mn Taka

Foreign %

2017-18

0.23

18.5

(85.69)

9827.6

(18.26)

31434.0

0.22

41261.6

76.18

23.82

2016-17

1.58

129.3

(30.30)

12022.4

31364.1

43386.5

72.29

27.71

2015-16

2.36

185.5

49.11

8971.1

27421.8

36392.9

75.35

24.65

2014-15

1.6

124.4

61.34

7564.7

18500.9

26065.6

70.98

29.02

2013-14

0.99

77.1

(36.28)

5625.0

17111.9

22736.9

75.26

24.74

DATA Source: NBR, EPB, BCMEA Members Note: The main source of imported tile is China. A few are shipped from Italy, Spain, India, Indonesia, Malaysia, Thailand, Vietnam and others.

Indonesia ceramic tile sector during the years 2015-2017 in million square metres 2017

2016

2015

Total production

370

350

400

Installed capacity

580

570-580

550-570

65 %

62%

66%

150,000

160,000

170,000

Particulars

Capacity utilisation Reduction of workforce due to idle capacity Source: ASAKI, Indonesia

Production capacity of Vietnamese ceramic tile sector during the years 2012-2017 in million square metres 20162017

20142015

2013

2012

Ceramic tile

485

452

358

350.2

Porcelain and granite tiles

125

73.5

640

547.5

435

425.2

Production capacity

Cotto tile Total Source: VIBCA, Vietnam.

Real production of Vietnamese ceramic tile sector during the years 2012-2017 in million square metres 20162017

20142015

2013

2012

Ceramic tile

415

361

260

245

Granite tile

110

40.6

555

440

302

285.6

80-85

Real production

Cotto tile Total Capacity utilization in percentage

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Domestic consumption Ceramic, granite and Cotto tiles Domestic consumption of real production in %

2016

2015

2014

2013

2012

468

410

360

250.5 253.9

80-85

80-85 80-85

Source: VIBCA, Vietnam.

Domestic consumption of Vietnamese ceramic tile sector during the years 2012-2016 in million square metres

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Analysis: Porcelain tiles

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AC 19-4

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Analysis: Heavy clay

Building up the pressures of pricing

Rohan Gunasekera looks at how brick industry modernisation could have a gradual influence in the pricing of bricks right across the sub-continent.

odernisation of the heavy clay industry in south Asia, especially in the biggest markets of India and Bangladesh, where some of the worst environmental damage occurs, through air pollution and agriculture top soil removal, is taking place only very slowly. Despite years of concern and efforts by governments and aid agencies as well as non-governmental organisations, brick making in the region remains largely traditional and small scale with the majority of factories adopting hand-moulding, sun-drying and Bull's Trench Kiln (BTK) or clamp-firing technology. Nor is there any solidarity among brick makers to get together and adopt modern, cleaner technology and charge higher prices for their products. However, the beginnings of change are visible with more stringent government emission regulations and plans to phase out older kiln technology. This is especially so in Bangladesh which is supported by aid agencies like the World Bank and Asian Development Bank largely through subsidised loans to encourage kiln owners to switch to cleaner and more efficient technology that will actually improve their profitability. But unless there is significant and sustained government intervention, the heavy clay industry’s modernisation will remain slow. A structural transformation of the brick industry is inevitable given the rapid growth of the construction industry in India and Bangladesh which will result in a significant increase in demand for walling materials, as well as awareness that environmental damage caused by outdated brick making methods cannot be allowed to continue. When it happens it will create huge opportunities for machinery manufacturers and technology providers. According to Anand Damle, Managing Director of De Boer Damle (India) Pvt. Ltd., in Pune, for any change in the brick making industry it is government policy which is most effective. “On its own, the industry may not do things which are in the interest of the environment and resource efficiency,” he told Asian Ceramics in

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an interview. “They don’t see direct benefits of that and even if they do, it is at a very slow pace. It is mainly policy which is effective in bringing about quick change.” The Indian government is now very strict about air pollution norms, setting suspended particulate matter (SPM) emissions standards for small and big kilns, with standards expected to tighten in future. To achieve this, India’s Environmental Pollution (Prevention and Control) Authority (EPCA) had asked brick kiln owners to shift to zigzag kiln technology for which they may even have to change from oval to rectangular shape. Also, in some regions like in the Delhi-NCR (National Capital Region), the government insists on High Draught Kilns with induced draught fans.

CPCB clamp downs

India’s Central Pollution Control Board has suggested ways to prompt the industry to switch to cleaner technology such as the need for initiatives for promotion of energy efficient technologies while framing new regulations for reducing the emissions from brick making process, conserving resource materials and reducing carbon footprint. The Fixed Chimney Bull's Trench Kiln (FCBTK) is the most prevailing technology, producing about two-thirds of the country’s brick production of 250 billion bricks a year. In India, High Draft Kilns (HDKs) and Vertical Shaft Brick Kilns (VSBKs) are comparatively more energy efficient technologies but constraints to their use include the need for electricity/power back up in case of HDKs and high initial cost and low production and non availability of skilled manpower in case of VSBK. As a result, these technologies has not yet been adopted on a large scale. Awareness about air pollution and the harm done by excavation of topsoil is slowly increasing both in the brick making community and society in general, says Damle of De Boer Damle (India), a recognised expert on the heavy clay industry in the region. “Slowly, all states are becoming aware of air pollution caused by

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Analysis: Heavy clay

problems the brick industry. But change towards cleaner and sustainable technologies and also change towards responsible clay mining is very, very slow. That’s why the government is becoming more and more strict, so the pace of change is expected to increase. Some discussions have begun on developing a road map for the brick industry. However, with parliamentary elections now on in India, the real policy direction will become clear only after the new government is formed.” The majority of kilns in India are clamp kilns, very traditional, rudimentary kilns where firing is done in the open. The government has not been able to give any alternative so far for clamp kilns. “This is because clamp firing is a technology applicable to very, very small and dispersed enterprises. So what the Government is doing is only designing siting criteria which means that whenever a clamp kiln is set up it should be at a minimum distance from highways, homes, orchards and rivers,” said Damle. As we have explained in our other heavy clay pollution-focused article in this issue, on February 25, 2019, Ministry of Environment, Forests and Climate Change (MoEFCC), Government of India, published a draft Notification which says that within 300 km radius of all thermal power plants, no new clay brick kiln can be set up or operated, and within one year – by endFebruary 2020 – all existing clay brick manufacturing plants within 300 km radius of thermal power plants will have to shift completely to manufacture of fly ash products like bricks, tiles and blocks. However, there is a general feeling that this regulation cannot be implemented. This is because even if 100% of fly ash is used for making bricks, it can meet only up to 50% of present annual demand in India of 250 billion bricks. So, the amount of fly ash generated is not enough to meet total demand. Also, the Niti Ayog of India estimates a four-fold growth in the requirement of walling materials by 2030.

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“This will have two effects,” said Damle. “Firstly, if fly ash is not able to meet even half the present demand and with demand expected to grow by four times, the gap between supply and demand will increase, resulting in prices going up and construction/infrastructure sectors getting adversely affected. Secondly, as a product, fly ash bricks are inferior to clay bricks from quality consistency, thermal conductivity, etc. points of view. So the government should not advocate a product inferior to the present product. Fly ash bricks are considered to have a higher life cycle cost and also have some radioactivity. I’m personally convinced this regulation cannot be implemented.”

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asian ceramics

Analysis: Heavy clay

Market growth

Market studies done by Greentech Knowledge Solutions Pvt. Ltd. say that in recent years, India’s building sector has been growing rapidly, influenced primarily by economic and population growth, and urbanization. Major new initiatives by the Government of India, like “Housing for All” and “Smart Cities” are expected to provide further support to the building construction activities in near future. If the present rate of economic growth is maintained over next few decades, it is projected that India’s building stock will increase by around 4 times between 2012 and 2047. Under this scenario, the annual demand for bricks is also expected to increase by around 3.5 times and reach a peak during 2032-37. The common burnt clay bricks have a market share of around 75-80% in the total brick market and in the business-as-usual scenario, common burnt clay bricks are expected to remain a major building material in foreseeable future. The common burnt clay brick industry in India, particularly when seen in the light of future demand for building materials, offers a large opportunity to improve resource efficiency and reduce natural resource use, energy, air pollution and greenhouse gas emissions. However, it should be noted that the manufacturing of burnt clay REBs require a certain extent of mechanization of the production process (clay preparation and shaping of bricks) and more sophisticated drying and firing process. Thus, production of burnt clay REBs requires upgradation of technology, technically trained manpower, significantly large capital investment as well as an access to reliable and affordable power supply. Greentech Knowledge Solutions studies say that at places where there is a large price differentiation among the brick categories, the low percentage of class-I bricks from FCBTK results in significant revenue loss to the brick-kiln owners. It suggests that retrofitting of FCBTKs into Zigzag kilns - an improved version of the FCBTK with the main innovation being the arrangement of bricks – would be a win–win proposition. Most of the FCBTKs can be retrofitted into natural or high-draught Zigzag kilns with the cost of retrofitting varying from Rs 10 lakh to Rs 25 lakh (Rs 1 million to Rs 2.5 million) depending upon the condition of the existing kiln and the extent of retrofitting required.

Kiln conversions

The conversion from FCBTK to Zigzag kilns benefits brick-kiln owners the most. The two-fold financial benefits – firstly through savings from reduced fuel consumption and secondly by increase in revenue due to the higher percentage of the highest quality product – make it a financially attractive proposition. Clay-fired bricks are locally produced and locally consumed. Therefore, the price of bricks and the price differentiation between the quality grades of bricks vary across the regions. Hence the techno-economics of conversion will vary from one region to the other. The conversion of a typical FCBTK located

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in eastern UP, Bihar, or West Bengal to Zigzag kiln would result in doubling the operating profit margin of the kiln. For a new construction, the capital cost of constructing a Zigzag kiln is equivalent to or in some cases marginally higher than an FCBTK; however Zigzag kiln yields higher profit margins. Wide-scale adoption of clean and efficient brick-firing technologies such as Zigzag firing technology, production of hollow clay-fired bricks and non-fired non-clay bricks are the main technological solutions for cleaner brick production, says Greentech Knowledge Solutions. It suggests that transformation of the brick industry requires a national-level policy framework aiming at cleaner brick production with China and Vietnam offering good examples where transformation of the brick industry is driven through comprehensive national-level policy on building materials including bricks.

Price variation

Damle of De Boer Damle (India) says there is now very large variations in pricing of clay bricks across India. In general, the minimum price of a standard clay brick 9” x 4” x 3” (23cm x 11cm x 7.6cm) in size – the most popular walling material - is around Indian Rs 4 and maximum price could be around Rs 10. There are regions which have over production like the NCR or Haryana, and entry barriers are low there so any new entrepreneur can easily get into brick manufacturing. In these regions prices of bricks are very low. In eastern region, in Bengal, Bihar, Orissa, Jharkhand, Assam and Tripura, including Bangladesh, bricks of 10 x 5 x 3 inches are very common. Their prices are more as their size is bigger by around 35% by volume. Prices there are much better than other regions and more than proportionate to their bigger size. “In some places, where the quality of brick is excellent, like in south India, people are ready to pay more – around Rs 8 -10 per brick,” said Damle. Bricks are generally traded not by agents but through direct sale from manufacturers to end users. But in some regions like North Karnataka, there are agents who build stock and then sell. “Generally, buyers are not able to put pressure on brick suppliers to reduce prices,” said Damle. “This happens only in regions with over-production and where there is stiff competition among brick makers. There, the customers can put one producer against the other and try to exploit the situation. But this is not a very common phenomenon.” Damle says that there is no solidarity among brick manufacturers. Even if they are working back-to-back, still they consider each other as a competitor. Although there have been some initiatives to come together and sell bricks through associations, they have been short-lived.This is because generally even if brick producers agree to collaborate on pricing, privately they try to sell their produce at a lower price than agreed price and then everyone loses.

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Analysis: Heavy clay

Most of the States in India has got a State-level Association. Some States where brick is an important commodity viz, IndoGangetic Region, Tamil Nadu, etc., there are associations even at district level and lower. Nationally, there is the All India Brick and Tile Manufacturers’ Federation, a federation of all State-level Associations. Another federation exists mainly formed by the South Indian States – the All India Earthen Tiles Manufacturers’ Federation registered in Bangalore. Also there is a very strong potter community (“Kumhars”) in India called ‘Prajapatis’ who also have State-level and all-India-level bodies to represent them. In general, all associations lobby with the government mainly for getting tax concessions or for making labor laws and clay excavation permissions more lenient. They do not focus on market development, technology upgradation or prevention of environmental damage.

Mechanisation too slow

Damle believes that the degree of mechanisation in India’s brick making industry is negligible. “My own company, De Boer Damle (India) Pvt. Ltd., Pune, has, for the past 10 years, implemented 12 projects – about 1.2 projects a year - each with an investment of around Rs 5 crores, on an average,” he said. One reason is that brick manufacturers do not see their future in the industry because the young generation is not taking any interest in continuing the business. The older generation feels that if the industry is going to die with them, why modernise? Moreover, they lack the knowledge and technology management skills required for modernization. “At present, there are no government incentives for mechanisation of brick plants. However, in future, we expect some incentives, not so much for mechanisation but for saving virgin clay/soil and for lowering the industry’s carbon footprint, which indirectly will also result in more mechanisation.” There are only about a dozen big brick making plants. One is by brick multinational Wienerberger which considers India a growth market. Its brick business in India is done by Wienerberger India Private Limited, which operates a production site for clay blocks in the Bangalore region. The Indian brick business performed well in 2018 and generated an increase in EBITDA, the company said. In Bangladesh there have been government interventions to modernise brick kilns. There the World Bank intervened and gave a loan to the government for kiln owners to buy machinery at lower interest rates. But the program has not been as effective as planned, partly owing to high levels of corruption – it is mainly kiln owners very close to government officials and whom government officials wanted to help, who got loans. Only a few brick kiln units benefited. However, there are renewed attempts to get kiln owners to switch to cleaner technology in Bangladesh. The ADB has proposed a financial package project consisting of two loans to brace the on-going technology dissemination efforts. The financial package contained in the Bangladesh

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BURNT CLAY BRICKS HAVE A SHARE OF AROUND 75-80% OF THE TOTAL MARKET Brick Sector Improvement Project is designed to support commercial financing of new technology kilns by providing loans to entrepreneurs through participating commercial banks (PFIs). The loans to the government are intended to establish a credit facility of $50 million equivalent in local currency at Bangladesh Bank (Central bank) for relending to participating financial intermediaries for the construction of more energy-efficient and environmentally superior brick kilns, The funds arc to be used the purpose of financing upgrades and constructing more energyefficient and environmentally superior kilns, The two components of the credit facility are (i) Financing the upgrading of existing FCK kilns to a transitional design to preserve sector welfare while immediately reducing pollution, and (ii) To finance and promote the most advanced brick kiln technologies in brick making and to demonstrate. The project will encourage kiln owners to use mechanized back processing, chamber dryer and Tunnel kilns to burn the bricks, according to the ADB.

A brighter future

Despite the continued difficulties of encouraging kiln owners to adopt cleaner technology, Damle believes the outlook for the brick industry in India and the South Asia is not bleak. “We expect the government to intervene, forcing people to clean up their act and reduce environmental damage. If the industry is left on its own, the speed of improvement will be much slow due to resource crunch. Unless the government provides technical, financial and management help, things will not change. The present brick industry in India, Bangladesh, Pakistan, Nepal and Afghanistan is not capable of changing on their own.”

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Analysis: GCC tiles

Falling sho tile supply in the Gulf

AC takes a look at why despite the large-scale construction projects and continued investment in the Gulf States, there remains an enormous imbalance between makers and usersâ&#x20AC;Ś

ulf Cooperation Council (GCC), comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Aram Emirates is home to some of the most exciting global ceramic tile markets. The region is home to some of the most active construction markets in the world. The United Arab Emirates (UAE) is the most active construction market in the region, with the Kingdom of Saudi Arabia (KSA) and Qatar also contributing as growth centres. In addition to one of the most healthy replacement ratio of ceramic tiles, there are over 11,400 large and mid-scale projects under construction or in the design and planning phase in the GCC. The large-scale construction projects in this region consistently feed the demand for large volumes of ceramic tiles. From demand point of view, three markets (the KSA, the UAE and Qatar) in the GCC stand out. Brisk construction activities in these three countries during the first half of the decade has

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resulted in a very steady demand of ceramic tiles. Going forward, the KSAâ&#x20AC;&#x2122;s housing shortage and the Governmentâ&#x20AC;&#x2122;s initiatives to mitigate the shortage would be the key driving force behind the ceramic tile demand in the country. The UAE and Qatar have both relooked into their tourism development strategies and are gearing up to host international events (Dubai expo 2020 and FIFA World Cup in 2022) in next few years. These events have opened significant market opportunities for ceramic tile producers. The construction sector in the region has been driven by private and government-backed investments. The oil-based economies are rapidly diversifying their economy in order to reduce dependence on oil. Fluctuations in global oil prices make the market extremely volatile; however, with increasing investments in construction, several other industries like hospitality and tourism are flourishing in the region, driving the ceramic tile consumption.

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Analysis: GCC tiles

ort? Dynamism is key

The tiles market in the GCC region is one of the most dynamic ones, globally, in terms of the kind of demand it generates. There is high demand for both high quality, high-priced tiles, and at the same time there is a significant demand for economical and cost-effective products. In 2017, the total demand of ceramic tiles in the region stood at 481 million square meters. For a population of slightly above 53 million (population of all GCC countries in 2018), the total consumption translates into per capita consumption of 9.07 square meters, one of the highest on global scale. In addition to high per capita usage, the region is one of the highest consumer of high priced/ premium ceramic tiles. On aggregate basis, ceramic tile demand in the region has registered a growth of more than 6 % (barring the year 2016) in each of the last four years, despite the ongoing economic and construction slowdown in some of the countries of the region. The region houses two of the largest global ceramic tile producers. UAE based RAK Ceramics and Saudi Arabia based Saudi Ceramics have made their names not alone in the regional market, but also in some of the most demanding and quality conscious markets of Europe and North Americas. Other ceramics tile producers based in the region have invested heavily in increasing the installed capacity and capability to produce higher quality products in recent years.

Demand vs Supply

It is quite surprising that with all the given advantages for ceramic tile manufacturing in the region, there is such a wide gap between demand and supply of ceramic tiles in all the countries of the region.

Premium demand

The GCC is home to a large number of High Net worth Individuals (HNI) making it a natural choice for luxury and high-quality products. Ceramic tiles are no exception. The vast number of large-scale projects demands high-quality tiles mainly from the GCC based and European producers. Oman based Al Maha Ceramics, which completed ten years of its operations in 2018 recently launched two value-added specialised products, namely Al Maha Iprotect tiles and Al Maha Barid. Al Maha Iprotect is the antibacterial, anti odour, self-cleaning tiles meant for ensuring cleaner and hygienic environments, safeguarding health hazards. On the other hand, Al Maha Barid is a cool tile developed from special glaze by Al Maha R&D, has high Solar Reflective Index of up to 110 per cent. Thus it has 50 per cent less solar radiation absorption which essentially help keep homes and places cooler than conventional tiles, leading to 11-20 per cent of better energy efficiency. According to Rajeev Singh, General Manager at Al Maha Ceramics, â&#x20AC;&#x153;Only a handful of companies in the world have the technological know-how of these products. The launch of these two specialty products will open a new era in the tiles segment in the GCC region. The hot summers and close indoor environment in the GCC can lead to a number of hygiene concerns. Al Maha Iprotect and Al Maha Barid will cater to the needs for safer environments. The market is graduating towards larger format tiles, almost all the companies are coming up with larger tiles with some value additions like polishing & squaring but still unlike the trend we see elsewhere, the usage of larger format tiles in the region are still lower and 60Ă&#x2014;60 cm continues to be the volume leader.â&#x20AC;?

From production point of view, ceramic tile industry in the GCC region is concentrated in Saudi Arabia, United Arab Emirates and Oman. Despite significant capacity addition by leading ceramic tile producers in the region, there is a huge demand supply mismatch in the region. In 2017, there was a demand supply mismatch of nearly 259 million square meters in the region. Leading ceramic tile producers in the region also export a significant part of their production to a number on non-GCC Saudi Arabia countries, which further widens the demand supply mismatch. Saudi Arabia is the largest consumer and producer of ceramic tiles Most of the GCC based ceramic tile producers are able to in the GCC region. With a consumption of 219 million square meters competitively price its products mainly due to the competitive fuel of ceramic tiles in the year 2017, the country has remained the prices and availability of raw materials in the region needed for largest consumer of ceramic tiles in the region by a wide margin. ceramic tile production. As a result of this mismatch, imports play a major role in the Ceramic tile production in GCC countries (m. sq metres) GCC tiles market. The region imports more than 50 per cent Country 2017 2016 2015 2014 2013 2012 2011 of its total demand from other 98 97 94 96 97 92 90 Asian and European countries. UAE China, India, Spain, Iran and 82 86 93 86 81 78 72 Saudi Arabia Egypt are the largest exporters of tiles to the countries in 42 42 40 39 34 28 24 Oman the GCC.

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AC 19-4

asian ceramics

Analysis: GCC tiles

Catered by one of the largest producers in the region Saudi Ceramics and four other ceramic tile producers, Saudi Arabian ceramic tile industry has struggled in last three years, as the country’s construction industry was severely hit by cutbacks in capital spending between 2015 and 2016, following the crash in oil prices. As a result, several construction projects were canceled or postponed, in conjunction with delayed payments to contractors that led to large-scale layoffs. This has an adverse impact on ceramic tile consumption in the country. Ceramic tile consumption in the years 2015, 2016 and 2017 suffered a decline as a result. Commercial construction and government financed projects have been the worst hit due to the slowdown. Though, demand from residential sector has remained steady. Price competition in the domestic market has driven demand for low-priced products with a large trend for larger sizes of ceramic and porcelain tiles for lounges and courtyards and bathrooms floor. More than two years after Saudi Arabia unveiled economic reforms under Vision 2030, the Kingdom appears to be making considerable headway in planning and launching key projects that will give a much-needed boost to the demand of ceramic tiles. With imports of about 139 million square meters of ceramic tiles in the year 2017, Saudi Arabia was the world’s second largest ( followed by USA) importer of ceramic tiles in the year. India has replaced China as the largest exporter of ceramic tiles in the country. In 2017, India exported about 55 million square meters of ceramic tiles to Saudi Arabia, followed by China (27 million square meters), Spain, UAE and Oman. A key executive from Saudi Ceramics told Asian Ceramics on the condition of anonymity, “Importers continue to bring large quantities of Chinese and Indian ceramic tiles, taking advantage of the prices of producers in those countries in the absence of strong controls on imports in the Kingdom. We have seen a huge imports of ceramic tile products not in accordance with Saudi specifications for domestic markets. The import of large quantities that exceed the demand has resulted in a great pressure on prices, which greatly affected the ability of domestic producers to achieve profitable sales, especially with the rise in various costs since 2017.”

United Arab Emirates

Though, Saudi Arabia is the largest ceramic tile market in the GCC region, but, United Arab Emirates is the most exciting nation market due to the high number of prestigious construction projects. The Emirates have become the financial centre of the Middle East region during last two decades, which has led to a number of commercial establishments. These high end constructions have fuelled the demand of premium ceramic tiles in the country. In addition to leading regional suppliers, European, Chinese and Indian ceramic tile producers supply a significant part of the total demand in the country.

Bahrain, Kuwait, Oman and Qatar

Though, Saudi Arabia and UAE are two of the largest ceramic tile markets, but other GCC countries too have started to make their presence felt in ceramic tile consumption. Oman, Kuwait and Qatar, where construction activities picked up briskly during early years of this decade have all registered similar ceramic tile industry consumption growth in recent years as that of the two leading consumers- Saudi Arabia and UAE. Qatar is expected to register steadiest growth in ceramic tile consumption among all the GCC countries in the current and

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THE GAP BETWEEN SUPPLY AND DEMAND REMAINS SURPRISING, DESPITE THE NEED FOR PREMIUM GOODS Leading manufacturers Location

Installed capacity/ annum

RAK Ceramics

UAE

82 million sqm

Saudi Ceramics

Saudi Arabia

62 million sqm

UAE

15 million sqm

Oman

20 million sqm

Saudi Arabia

14 million sqm

Oman

6 million sqm

Al Jawdah Ceramics Company

Saudi Arabia

12 million sqm

Al Khaleej Ceramics

UAE

10 million sqm

Company

Porcellan LLC Al Anwar Ceramics Company Future Ceramics Al Maha Ceramics

next two years as there are numerous large-scale infrastructure projects underway in preparation of the FIFA 2022 World Cup in the country. This includes not only stadium and other non-residential construction, but also entails significant investment in the expansion of the country's hospitality sector to ensure the smooth functioning of the World Cup.

Anti-dumping duty

As mentioned elsewhere in the article, GCC countries have become one of the largest ceramic tile importing markets in recent years. Huge imports of ceramic tiles in different countries has made it difficult for domestic tile producers in the region. In December 2018, leading ceramic tile producers from the region led by Saudi Arabia based Saudi Ceramics and Alfanar Ceramics made a complaint to GCC Technical Secretariat to impose anti-dumping duties on ceramic tile imports from India, China, Egypt and Spain. In their complaint, Saudi Ceramics and Alfanar Ceramics urged the authority to impose temporary antidumping duties on tile and porcelain imports to offset the huge losses incurred by local and regional ceramic manufacturers, ahead of imposing the final levy later on. The complaint is currently being investigated by the GCC Technical Secretariat.

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Analysis: GCC tiles Table 1

Table 1

2011 2012 2013 2014 2015 2016 2017

95 101 106 113 109 116 123

2011 2012 2013 2014 2015 2016 2017

Table 1 187 199 217 230 241 229 219

2011 2012 2013 2014 2015 2016 2017

Tile consump-on: Bahrain (m. sq. metres)

Tile consump-on: Saudi Arabia (m. sq. metres)

Tile consump-on: UAE (m. sq. metres)

11 12 12 13 14 15 17

Table 1 2011 2012 2013 2014 2015 2016 2017

20 21 22 24 26 27 29

Table 1 2011 2012 2013 2014 2015 2016 2017

Tile consump-on: Qatar (m. sq. metres)

Table 1 33 35 38 40 41 44 46

2011 2012 2013 2014 2015 2016 2017

Tile consump-on: Kuwait (m. sq. metres)

32 36 38 41 43 46 48

Tile consump-on: Oman (m. sq. metres)

Heavy influx of ceramic tiles from China and India has forced many GCC manufacturers to target only the high-end market, as the imported products dominate the low-end market. In recent years, GCC based producers have augmented domestic production, adopted aggressive marketing strategies and leveraged the existing distribution structure to bring down imports, which is currently one of the major challenges being faced by the tiles producers in the region. Product customisation, increasing product availability through prudent 1 sales channel and applying innovation in manufacturing to cut down cost has been the top priority for the producers in the region.

RAK Ceramics

United Arab Emirates based RAK Ceramics, one of the largest global ceramic producers is undoubtedly the most popular ceramic tile producer in the GCC region. With an installed capacity of 82 million square meters from its Ras Al Khaimah based manufacturing plants, the company has supplied ceramic tiles to a number of prestigious projects in the region. According to Abdallah Massad, CEO of RAK Ceramics, “Over the last 10 years, the ceramics industry has come a long way. The introduction of digital printing changed the industry dramatically. At RAK Ceramics, we are always looking for ways to boost our exports through better accessibility, delivery time, and reduced transportation costs. As part of the UAE Government's Vision 2021, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has called for a unified industrial strategy. During this shift toward a post-oil era, the industrial sector is set to become one of the country's key contributors to GDP. Continued developments in the UAE's transportation infrastructure gives RAK Ceramics access to high-quality raw materials and new technologies that will enable us to be competitive in our global export markets.”

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Saudi Arabia expansion

In February 2018 RAK Ceramics announced its intention to invest in a state-of-the-art production facility in Saudi Arabia that utilises the latest technology in ceramics manufacturing. In the first phase, it will initially add approximately 10 million square metres per annum to RAK Ceramics’ tile total production capacity. The company is optimistic for growth in1 Saudi Arabia due to increasing construction and real estate activity and the attractive cost advantages for manufacturing due to competitive energy costs. Commenting during the company’s annual report presentation, CEO of RAK Ceramics, Abdallah Massad said, “Saudi Arabia was and will remain in the region the biggest market and the biggest demand will come from the kingdom. Saudi Arabia has passed through restructuring the last three years, but we can see a momentum of projects in coming years. We already were in touch with two industrial cities in Saudi where they have the availability of gas and we will try to finalize and we keep our option. Right now it would be difficult to comment on exact capex, but no doubt it will be more than 300 million dirham.”

Saudi Ceramics

Saudi Arabia based Saudi Ceramics is the second largest ceramic tile producer in the GCC region. With an installed capacity of 63 million square meters of ceramic tiles from its four production facilities in the Kingdom, the company has invested heavily in increasing the installed capacity in recent years. Construction slowdown in the Kingdom affected the company’s tile output in the year 2017. Company’s total output of ceramic tiles, which stood at 40.74 million square metres suffered a decrease of 16.8% over 2016 output. With the decline of ceramic tile consumption in the local markets and the intensification of competition as well as the company’s quest to enter new markets, the company has begun

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Analysis: GCC tiles

to invest in the development of new tile designs with the help of international tile designers and companies in the second quarter of 2018. In order to produce higher quality products, the company also installed a new polishing and squaring line in 2017 with an investment of 11.3 million riyals. Later in 2018, the company acquired new polishing and squaring line for three other production lines of the company. According to the company’s management, “The project has contributed to the development of tiles products, raise their quality, and enable the company to market them with a better profit margin and to enter into projects that require this type of tiles.”

Al Anwar Ceramics Tile Company

Al Anwar Ceramic Tiles Company SAOG enjoys the distinction of being the first manufacturer of ceramic tiles in the Sultanate of Oman. Established in 1998 in Nizwa, the company has an installed capacity of about 20 million square meters of ceramic tile per annum. The company markets its range of glazed wall and

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floor tiles under the brand name ‘Al Shams’. The company which started ceramic tile production with an installed capacity of 3 million square meters per annum has undertaken five major expansion exercises in the intervening years. The company claims to use machinery and technical know-how from leading Italian companies. The company recently launched a new range of wall tiles featuring all-new hexagonal tile designs and bouquet of new designs in 20X60CM and 30X60CM Wall tiles. Al Anwar also added a wide range of Porcelain tiles to its product portfolio. According to Shaji Thomas, Head of Sales, Al Anwar Ceramic, “These new range of tiles were developed based on the current design trend in the global market and the feedback from our key customers. With the addition of Porcelain tiles, Al Anwar is offering a complete range of tiling solution to all the projects in the GCC Market. Our tiles are engineered with a clear understanding of the customer expectation. As a brand leader in Oman, it is our endeavor to continuously launch new exciting designs and to offer the best range of tiles to our customers.”

AC 19-4

asian ceramics

Analysis: Bricks

Clearing th Pakistan sets the pace As announcements come that Pakistan is getting on top of adopting new, cleaner brick technology and enforcing its application before the end of 2019, AC wonders if this is finally the turning point for the clearing and modernising of the Southern Asian brick sector…

he Punjab Minister for Environment Protection Muhammad Rizwan has said that, in order to control environmental pollution, all traditional kilns be converted to zigzag technology by the end of December2019. The use of zigzag technology in construction and operations of kilns could minimize effects of burning coal on environment and reduce the fuel consumption up to 30 per cent. The minister has now directed the TEVTA authorities to expedite the process of training to brick kiln owners following an EPA meeting at the beginning of May. He emphasised the kiln owners in Punjab to adopt this new technology without any fear as it gives better quality bricks and reduces coal consumption. All Pakistan Brick Kiln Owners Association President Muhammad Shoaib Khan Niazi, General Secretary Mehr Abdul Haq and other office bearers also attended the meeting. Secretary EPD Asad Gillani, talking on the occasion, pledged full support of his department to the association both in terms of human and capital resources for conversion of all traditional brick kilns to the new technology to combat environmental pollution in the province.

Why Zigzag?

International experts have long stressed Southern Asian kiln owners to adopt new zigzag technology as was not only environment-friendly but also cost-effective. International experts from Nepal Resma Dixit, Raj Kumar, Syuas

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Prajapots and Syama Maharjan were of the view that the zigzag brickkiln technology reduces 40% coal consumption for baking of bricks and similarly, it also offers 90% top quality bricks compared with 70% secured through conventional methods. The same experts said the world was adopting zigzag technology in kilns and it was “high time” the region complied and followed suit. They said the new technology was cheap as it reduces over 40% coal consumption. In Pakistan, there are over 20,000 kilns and these were causing huge pollution. Nepali expert Resma Dixit said baking of 1,000 bricks used to add two kilograms of smoke to the atmosphere in traditional style brick kilns, while it could be reduced to 400 grams only by adopting the zigzag technology. Technical Manager Asad Mehmood said the NEECA was working on the efficient use of energy and coal is important sources for producing energy in the country. “Coal is used in brick kiln industry so the NEECA was facilitating the Environment Protection Department to check rising pollution in the atmosphere. ICIMOD Country Representative Abdul Wahid Jasra said the international body was working in eight countries including Pakistan, Bangladesh, India, Bhutan, Nepal, Burma, Afghanistan and China. The mandate of ICIMOD was to work in mountainous areas of the countries. Pakistan Brick Kiln Association President Shoaib Niazi also observed that their organisation would surely follow the zigzag technology. Muhammad Ikraam, a kiln

Small steps…

South Punjab’s first-ever zigzag brick kiln was made operational in

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Analysis: Bricks

he air Jahanian, Khanewal district in December 2018. After Lahore, this is the first kiln in South Punjab with has been converted to the zigzag technology. Brick kiln owner Muhammad Khalid Umar says that the technology has reduced coal consumption by 40%. “Over 0.7 million bricks can be baked at the same time,” he reveals. “Around Rs10 million were spent on constructing this brick kiln. Not only does it not cause pollution, it is also cost effective,” he adds. Environmental expert Dr Umar Ghouri says that zigzag brick kilns emit white smoke, which is not harmful for human health, as compared to the black smoke which is emitted from traditional kilns. Smog, which is formed when black smoke released from kilns mixes with the atmosphere, causes several diseases. “Asthma, chronic bronchitis, respiratory diseases, eye infections and lungs diseases are some of the maladies that smog can cause,” he explains. All traditional kilns should be converted to the zigzag technology, he suggests. Most importantly the environmental impact of the new kiln has not gone unnoticed by residents in the area. Abid, a resident in the area, says that the old kiln had caused many health problems in citizens. “Now, the environment is safe and the air is once again fresh,” he expresses. Previously, the people used to contract lung and eye infections due to the high levels of air pollution. “But the white smoke emitted from the zigzag brick kiln is completely harmless,” he says. On October 27, the Punjab government had imposed a temporary ban on operating traditional brick kilns in the province in an effort to reduce environmental pollution and smog. Taking the extent of air pollution into consideration, the government directed owners to convert to zigzag technology. The technology, which is originally from Nepal, was introduced in Pakistan with the cooperation of the Brick Kiln Owners Association of Pakistan (BKOAP) about a year ago.

The fly ash issue

In India, whilst fly ash is being touted as an environmental help, the realities are that many consider the draft notification issued by the ministry of environment, forest & climate change (MoEF&CC) on utilisation of fly ash for brick making is a non-starter. As such, how can the country design a law that allows for maximum utilization of fly ash, significantly reduces the consumption of clay and the air pollution from fired clay brick kilns and yet meets the requirements of the construction industry?

Maximising utilisation of fly ash

For the past 20 years, the environment ministry has promoted utilisation of fly ash bricks by mandating manufacture of fly ash bricks within a certain distance of thermal power plants (TPPs). In the draft notification, the distance has been fixed as 300 km. The implicit assumption here is that within 300 km of a TPP there is a perfect match between the availability of fly ash and demand for bricks. This is obviously incorrect. The availability of fly ash in and around TPP

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ZIGZAG SAVES ME UP TO 40% ON MY ENERGY COSTS ALONE clusters like Korba in Chhattisgarh and Singrauli in Madhya Pradesh far outweighs the demand for bricks. In contrast, there is not enough fly ash to meet the demand of the brick industry in Delhi-NCR. This variation in demand and supply in different parts of the country is the reason why a blanket approach to fly ash utilisation has failed so far. To address this, we should adopt a regional approach to fly ash regulation. That is, regulation should be tailored depending on the availability of fly ash and the demand for the material in a region. In general, regions with high fly ash availability should be mandated to produce more of their building materials from fly ash and vice versa. But, mandating the manufacture of fly ash bricks is not sufficient. There should also be demand for it. Demand can be created by putting in place demand-side regulations and by promoting use of fly ash bricks and other products. Demand-side regulations like mandating a certain percentage of building materials from fly ash in the building by-laws of cities could go a long way in increasing the utilisation of fly ash. But the most important thing required for generating demand is quality control and certification of fly ash products. There is a serious concern with the quality of fly ash bricks. Most of the people who commented on my previous column complained about the poor quality of fly ash bricks. Many suggested that instead of only bricks, other fly ash products like AAC blocks, fly ash concrete blocks, FaL-G blocks, fly ash foam concrete, etc, should be promoted. I agree with these suggestions. If we need to promote utilisation of fly ash, we should promote a wide variety of fly ash products and not just bricks. For this, we need promotion and certification programmes to enhance the acceptability of fly ash products in the market.

AC 19-4

asian ceramics

Table 1

Analysis: Bricks

India Bangladesh Pakistan Nepal

10 2 4.5 0.2

Brick industry workers (million)

Lastly, there has to be credible deterrence for non-compliance for TPPs. TPPs have flouted the fly ash notification for two decades because they know that the penalty is small. Any new law must increase the penalty for non-compliance and set up a transparent system for supply of fly ash to different users. A regional-level online portal for compliance assurance can be established to improve the enforcement of the law.

Cutting back on clay

The overall environmental footprint of fired clay bricks can be significantly reduced by finding an alternate source of clay, changing the brick kiln technology and by producing different kinds of fired clay bricks. Clay can be sourced sustainably from desilting of rivers, lakes, ponds, ports, reservoirs, etc. In West Bengal, clay is sourced in many districts from desilting of floodplains. It is estimated that in Howrah, Hooghly and West Medinipur, close to 2 billion bricks are produced annually from desilting of floodplains after high tide. Similarly, silt from desilting of tanks in and around Bengaluru is now becoming an important source of clay for brick manufacturers. Clay can also Table 1 mined from large clay deposits, as is being done in be commercially major brick producing countries like Vietnam and China. 145000 India The fact is that India can get enough clay from sources other than 10000 Bangladesh agricultural land to meet the demand for clay bricks. What we need for Pakistan 18000 800 of the availability of clay in different parts of Nepalis a proper assessment this the country followed by regulations on desilting and clay-mining.

Table 1 India Bangladesh Pakistan Nepal

196 151 254 137

Brick consump0on per capita

No. brick producers (es0mate)

Table 1 India Bangladesh Pakistan Nepal

260 25 45 4

Brick produc0on (billion units)

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AC 19-4

We can also reduce clay-mining by making different varieties of fired clay bricks. In Maharashtra, Andhra Pradesh and Telangana, clay is mixed with fly ash or waste such as lime slurry to make bricks. Similarly, instead of making solid bricks, hollow or perforated bricks can be made which reduces clay requirements by 20–30%. Wienerberger, the world’s largest producer of clay bricks, produces hollow clay blocks—which require 60% less clay than conventional bricks—in its Bengaluru plant. Hollow and perforated bricks and blocks have the added advantage of better insulation properties and 1 lower energy demand for heating and cooling in buildings. As discussed, India can reduce pollution from brick kilns by using better technology. Currently, most Indian kilns use outdated tech such as clamps and fixed chimney bull’s trench kiln (FCBTK). These are highly inefficient and polluting and should be replaced with zigzag technology or the more advanced vertical shaft brick kiln or tunnel kiln to significantly reduce coal consumption and air emissions. In nutshell, there is a large scope to reduce the ecological footprint of fired clay bricks that we have not even tried. It is clear that maximising fly ash utilisation and reducing the environmental impacts of fired clay bricks require much more than just a simple law that bans fired clay bricks. It requires a holistic view of the brick sector, from sourcing of raw materials and production of bricks and building materials to sales and promotion of alternative building materials. It requires a vision on how we will meet the material requirements of the building sector in a climate-constrained world. For this, we need National and State Brick Missions (and many laws) that can transform the brick sector by facilitating large-scale adoption of cleaner

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Analysis: Bricks

technologies and by bringing innovation in the building material sector. Bricks are an age-old industry and the backbone of the construction sector. The continuing use of inefficient and polluting technologies as well as inadequate push for innovative building materials has kept the brick sector stuck in the 20th century. It is time it moved to the 21st century.

Supply shortages?

The trouble is, though, the amount of fly ash…at least, that’s what the industry is saying. Signalling a frustration among fly ash brick manufacturers, around 100 units have stopped work in the last six months in Uttar Pradesh alone. “They all are waiting for adequate supply to resume their operations,” said Subesh Singh Bhati, president, Fly ash Bricks Manufacturers Association (FBMA). Meanwhile, around 100 fly ash brick manufacturers in Haryana get only 5 per cent of fly ash from thermal power plants located within 300 km, as opposed to at least 20 per cent mandated by a 2008 notification by Ministry of Environment and Forest. Ajit Singh’s bricks manufacturing plant in Hisar in Haryana has a requirement of 1,600-1,800 tonne fly ash per month, but is allotted only 400 tonnes from Rajiv Gandhi Thermal Power Station in Khedar, on a monthly average. “There is a lot of uncertainty. People like me have set up fly ash brick manufacturing units but we keep waiting for ash from thermal power plants. There are times when we don’t get delivery for 10 days at a stretch,” said Vijay Gupta, who procures fly ash from Dadri Thermal power plant for his unit in Greater Noida. His unit has a capacity of making 40,000-50,000 fly ash bricks per month but is currently manufacturing only 20,000-25,000 bricks. “On one hand, the PMO (prime minister’s office) is stressing on increasing fly ash utilisation and has come up with a new ruling that all red clay brick manufacturers should shift to fly ash, but even the existing ones are not given the required quantity. How will this industry see a boost if this situation continues?” asks Gupta. The Centre had put up a draft notification on February 25, 2019, stating, “No new red clay brick kilns shall be installed and operated within 300 km from a coal or lignite based thermal power plant after publication of this notification. The existing red clay brick kilns located within 300 km shall be converted into fly ash-based bricks or blocks or tiles manufacturing unit within one year from the date of publication of this notification. In order to encourage the conversion, Thermal Power Plants (TPPs) should provide fly ash at the rate of Re 1 per tonne and bear the full transportation cost up to 300 km to such units.” Reasons of “shortage” range from fly ash being sold at higher rates to cement manufacturers to halt in supply during inspections or visits at thermal power plants, and giving priority to road or other project contractors owing to “election compulsions”. “Last few months have seen a lot of project inaugurations by governments due to upcoming elections. The thermal plants stop our supply as per their whims,” alleged Gupta. Another manufacturer, who did not wish to be named, said that he procures fly ash from Badarpur power plant and even though there is a good quantity of ash dumped at the site of the plant, he did not receive any for at least three months.

Joined-up thinking? As ever in India, we are deluged with announcements and legislation, and then faced with the reality of companies spending inordinate amounts of time finding reasons not to comply. Unless the country 62

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can get on top of that, then there really is little chance of exercising national change. For example, whilst many are trying to reduce pollution…news breaks again that a number of illegal brick kilns have come up in Rangeilunda, Kabisuryanagar and Polosara blocks of Ganjam district. Some of these kilns are located close to the towns raising concerns over pollution emanating from them. Taking advantage of lack of monitoring by the district administration, traders from neighbouring Andhra Pradesh have set up kilns in these blocks without obtaining the required permission. The mushrooming kilns has became a constant source of pollution causing problems for residents and commuters. Smoke and dust emanating from the kilns often form clouds making it difficult for the commuters to pass through the road. As workers remove topsoil for making bricks, it reduces soil fertility affecting crop production. Sources said brick kiln owners lure poor farmers and acquire their lands for operating their units without obtaining licence from the district administration. Flouting norms set by the State Pollution Control Board and NGT’s order, several brick kilns have set up their units in Rangeilunda, Kabisuryanagar and Polosara blocks. This apart, a large number of children are engaged in the brick kilns. The owners of the kilns allegedly share a nexus with the district officials and local leaders and engage school drop-outs in their units. They even threaten labourers who raise their voice against the illegal practice, alleged locals and demanded that steps should be taken urgently to stop this trend. Moreover, labourers brought from Sambalpur, Boudh, Sonepur and Kandhamal districts are exploited by the brick kiln owners. But the officials of tehsils feigned ignorance about the matter. Acting on several complaints, Kodola tehsildar Pravat Kumar Parida recently visited a brick kiln at Luhakote in the block. But action is yet to be taken over the issue. India: it’s really time to get a grip!

Bangladesh: feeling the pressure

Dhaka has been ranked as the second most polluted capital city in the world in the 2018 World Air Quality Report released by Greenpeace and AirVisual. It scored 187 in the AirVisual Index and 361 in Air Quality Index. High levels of PM2.5 (ambient airborne particles) have been found in Dhaka's air. Also, in the Environment Protection Index, Bangladesh stood 179th among 180 countries. This clearly depicts the state of Dhaka's air which is extremely hazardous for public health. The consequences are evident. Tens of thousands of people suffer from respiratory diseases per year in the country. Global Burden Disease Project showed that the average lifespan went down by 1.87 years due to ambient air pollution in Bangladesh. Already, Bangladeshis are spending an exorbitant sum of money on medical treatment for respiratory illnesses. This means that diseases due to ambient air particles risk having a huge economic impact in the country by dragging down the working capacity of people. Poribesh Bachao Andolon and Nagorik Odhikar Songrokkhon Forum have said that 90 percent of dust pollution in Dhaka is due to the construction of different flyovers and metro-rail roads, and 56 percent of air pollution stems from uncontrolled brick kilns. Air Quality Index has found that the following five pollutants, namely ground level ozone, carbon monoxide, sulphur dioxide, nitrogen dioxide and particulate matter in Dhaka's air, are present in dangerous levels. There are several sectors contributing to air pollution. Brick kilns are the number one contributor to air pollution in Dhaka, as many of the kilns are still using 120-foot black chimneys that release harmful gases which ultimately penetrate the ozone layer. And according to Department of

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Scandiano, January 2019. BMR’s attention to the production process is aimed at the ceramics industry achieving high quality and highly competitive products both from a technological and aesthetic point of view. To this end, the finishing segment of which BMR is an international leader includes an important surface treatment phase that gives added value to lapped and polished surfaces. In general, the first treatment is that of acid pickling, carried out to preserve any shadings deriving from subsequent washing with aggressive detergents. With pickling, the surface is treated with an acid solution applied through a sponge roller and is then simply rinsed with water. Subsequent treatments are distinguished according to the different surface types, which can be classified into two macro categories: - polished technical porcelain, full body or double loader; - lapped/glazed technical porcelain. Thanks to the collaboration with companies specialized in tools, glazes and raw materials for treatment, BMR has developed three lines of treatment machines, with the main purpose of improving cleanability and shine: TopCoat, TopFinishing, SuperShine. TopCoat applies products that include acid pickling and fillers to preserve the product’s original gloss from the lapping process.

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TopFinishing is a 6-head machine that allows the dry application of filler fluid. Thanks to the balance of weight, speed and type of product applied, TopFinishing allows the increase of Gloss during the process. SuperShine is a mechanical heat treatment able to increase the degree of gloss coming from the lapping of 30 points and more. The mechanical heat process takes place in consideration of: • advancement speed of the machine belt; • tilting speed of the upper bridge for polishing heads; • ability of the tool to absorb and release process fluids; • drying time of the process fluid; • head pressure; • control and management of the operating temperature generated by tile/tool friction. SuperShine is based on the use of 10 satellite heads ⌀ 580 mm with 6 tools ⌀ 160 mm, each of which applies an adjustable amount of natural silica in fluid suspension that is pressed by the force and weight of the heads themselves. Specifically, the first 7 heads have the function of spreading and polishing the product, while the following 3 are for washing. The result is continuity in the quality of the finished product. Thanks to all its technical and technological features, SuperShine can be defined as a real dry superpolishing process.

AC 19-4

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Analysis: Bricks Environment data, there are about 7,000 brick kilns in Bangladesh. Almost 2,000 of the kilns don't have a licence or permission from the DoE. 88 percent of kilns do not adhere to the Brick Manufacturing and Brick Kilns Establishment (Control) Act and the newly enacted provisions before establishing kilns. And as far as established kilns are concerned, they do not upgrade to zigzag kilns, Hoffman kilns or Tunnel kilns. In addition, among 3.89 million vehicles registered with the BRTA, 5,00,000 are unfit to be driven on roads. According to the law, if a vehicle becomes unfit, reaches its shelf-life or causes serious environmental pollution, registration shall be cancelled immediately. But these vehicles are running daily on the country's roads—releasing harmful gases with high amounts of sulphur contributing significantly to air pollution. The situation has worsened. The Bangladesh government should have paid heed to this foreseeable manmade disaster a long time ago. The draft of Clean Air Act-2019 has already been proposed by the Department of Environment and Bangladesh Environmental Lawyers' Association (BELA). It is waiting to be presented before the cabinet and parliament. But this process started in 2018. The fact that a law regarding something as critical as air pollution takes so long to get passed in parliament reflects the lack of policy attention.

Moreover, some of the sections of the Clean Air Act have been emphasised by DoE and BELA. They prescribe for the establishment of the National Air Quality Management Plan in Section 6, declaration of “critical” areas due to air pollution in Section 7, establishment of an advisory council consisting of 29 members from different ministries and departments under Section 11, and 10 years' imprisonment for violating any provision of this law by any person, private or public agency under Sections 25 and 27. So far the proposals seem well-thoughtout and we know that prevention is better than cure. This law shall be mandated with measures for preventing air pollution rather than only concentrating on cure. The sources of pollutions may be marked along with critical areas under Section 7 of the Act. It will help in reducing the release of detrimental gases and protecting people living in those places. The vehicles marked unsafe under this Act and Road Transport Act-2018 shall be removed immediately from the roads with the help of Bangladesh Road Transport Authority. National Air Quality Management Plan under Section 6 may set some national standards for the emission of particulate matters, carbon monoxide, nitrogen dioxide, sulphur dioxide, etc., so that the amount of fuel containing sulphur can be reduced and monitored by the board. Manual brick kilns may be updated to environment-friendly brick kilns as soon

Brick kiln technologies in Bangladesh’s brick factories Types of kiln technology

Scale and features

FCK (fixed chimney kiln)

Zig-zag

VSBK (vertical shaft brick kiln)

Improved Zig-zag and mini-tunnel

Hoffman kiln (HK)

Small-scale. Very good energy efficiency and emissions results. Theoretical new designs for small-scale kilns introduced by World Bank via Xian Institute consultancy. Medium-scale. Uses natural gas. Very good energy efficiency and emissions results. Medium-scale. Very good energy efficiency and emissions results.

Hybrid Hoffman kiln (HHK)

Tunnel kiln

Old BTK (bull trench kiln) Century old small unregistered temporary seasonal brick kilns in rural villages

Number of production units

Medium/large-scale. Very good energy efficiency and emissions results. Small-scale, two 30-ft chimneys. Most polluting of all listed technologies. Smaller unspecified. Used for personal and local purposes. Inefficient and polluting.

Pilot introduced in 2010, but not accepted by local brick makers

A few

Pilots expected – technologies not yet proven.

A few

Introduced in 1980s, but new ones are prohibited due to concerns about natural gas resources.

A few

Introduced by UNDP-GEF IKEBMI project in 2006.

Recently introduced. Outlawed in 2002 Environmental clearance not given. Some exist despite regulation. No government clearance given. Declining to end. Some exist despite regulation.

63 (in 2014, DoE data) (More under construction 40 (in 2014, DoE data) (More under construction) Some exist

Some exist 6,791 (in 2014, DoE data). (In 2014/2018 10,000, unofficially estimated. More under construction)

TOTAL

Status

Small-scale, one 120 ft chimney. Outlawed in 2013 (environmental 3,514 (in 2014, DoE data) Highly polluting, but emissions clearance will not be given) more dispersed than BTK’s. 3,514 Small-scale. Can be less polluting (in 2014, DoE data) than FCK, but no standard 2,966 design, so many still do not meet Substantial conversion from FCKs (in 2014, DoE data) in 2014. government standards. World (4,227 in 2017, including 121 Vietnamese model piloted. Bank introducing low-emissions Hoffman and Tunnel kilns, BABMA Vietnamese model for conversion data) of FCK to Zig-zag.

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Analysis: Bricks as possible by removing the black chimneys as prescribed under Brick Manufacturing and Brick Kilns Establishment (Control) Act. The advisory board under Section 29 of the Clean Air Act 2019 may be formed within two months after the Act gets passed as we don't have even one year to spare. The Bangladesh National Ambient Air Quality Standard may be set up before the Act comes into force for carrying out technical and scientific research and promoting advanced technologies to prevent air pollution.

Time to change?

Noting that various diseases, including cancer, are on the rise in the country, he said the government is firmly committed to changing the situation Environment, Forest and Climate Change Minister Md Shahab Uddin said the brick kilns located around Dhaka city are responsible for 58% of its air pollution. “The government has taken a strong stance against polluters….we are not getting expected results due to various difficulties,” he told a stakeholders’ workshop on the “Draft Clean Air Act for Bangladesh” held at Hotel Intercontinental in Dhaka on Thursday. The Department of Environment (DoE), Bangladesh Environmental Lawyers Association (Bela) and Bangladesh

EXHIBITION REPORT

University of Engineering and Technology (Buet) jointly organized the workshop. Speaking as the chief guest, Shahab Uddin said the government is committed to protecting the country’s environment and that is why it has strengthened legal structures to do so. Citing the findings of a World Bank’s study, he said apart from brick kilns, growing number of vehicles and construction work are also contributing to the air pollution. Noting that various diseases, including cancer, are on the rise in the country, he said the government is firmly committed to changing the situation. As per the government’s commitment made in its election manifesto, the environment minister said it has been taking various measures to check air pollution in the country. “It is quite impossible for the government to protect the country’s environment alone. Your cooperation is a must to save the environment,” he added. Deputy Minister for Environment, Forest and Climate Change Habibun Nahar said brick kilns are being set up indiscriminately polluting the air across the country. “Many brick kilns have no environmental clearance to produce bricks violating environmental rules,” she said.

EXHIBITION REPORT

The 12th Shanghai International Exhibition for Powder Metallurgy, Cemented Carbides and Advanced Ceramics The 12th Shanghai International Exhibition for Powder Metallurgy, Cemented Carbides and Advanced Ceramics was successfully held at Shanghai World Expo & Convention Center from March 25th to 27th, 2019. In the three days exhibition, buyers from all over the world came back with fruitful results, while exhibitors met with valued business partners. The total exhibition area of the exhibition reached 25,000 square meters, an increase of 12% over the previous edition. The number of exhibitor was 464, a rise of 11% compared with the previous edition. There were 22,637 professional buyers from home and abroad, an increase of 19.5% over the previous edition. Moreover, professional visiting delegations were actively organized to participate in the great event, including Delegation of Advanced Ceramics Industry, Study Group of Korean Advanced Ceramics Industry, Delegation of China’s Advanced Ceramics Industrial Alliance, Delegation of Jiangsu Ceramic Society, Ceramics and Refractory Materials Committee. The companies participating in this exhibition are from China, USA, Germany, UK, Italy, France, the Netherlands, Sweden, Switzerland, Austria, Russia, Canada, Japan, South Korea, Poland, Singapore, India, Hong Kong and Taiwan, covering various fields such as powder raw materials, products, mechanical equipment, 3D printing, testing instruments, gas and process solutions. There were about 210 equipment companies, accounting for 45%; about 114 material companies, accounted for 24%; about 120 product companies, accounting for 26%; about 20 3D printing companies, accounting for 5% . During the exhibition, many high-quality academic forums and exchange meetings were successfully held, including: 2019 China Summit Forum on Cutting-edge Technology Application and Development in Advanced Ceramic Industry & Academic

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Annual Meeting of the Industrial Ceramics Committee of Chinese Ceramic Society, The 8th Shanghai International Injection Molding Forum, Academic Annual Meeting of China Powder Metallurgy Alliance & 2019 Shanghai International Powder Metallurgy Forum, Launching Ceremony of CHINA ADVANCED CERAMICS INDUSTRY ENCYCLOPEDIA, Establishment Ceremony of China’s Advanced Ceramics Industrial Alliance, Press Conference & Signing Ceremony of Messe Frankfurt and Uniris, China-Korea Advanced Ceramic Industry Exchange Meeting. It is worth mentioning that in the press conference and signing ceremony, the cooperation between Formnext and PM China was announced. The two parties will jointly hold the 2020 Shenzhen International Exhibition and Conference on the Next Generation of Manufacturing Technologies and Materials at Shenzhen World Exhibition & Convention Center during September 9th~11th, 2020, aiming to create a bigger cooperation platform for the industries of cutting-edge materials, molding technology and related equipment, and further explore the vast business opportunities in the domestic market. It is expected that the total exhibition area will reach 20,000 square meters, with about 200 outstanding exhibitors from all over the world and more than 10,000 professional visitors. The exhibition will run through a series of advanced materials, technologies, equipment and products in the fields of materials, powder metallurgy, additive manufacturing and post-processing, bringing new business opportunities to the manufacturing industry in China and even in Asia. We sincerely thank you for your attention and support to the exhibition. On March 24 ~ 26, 2020, the 13th Shanghai International Exhibition for Powder Metallurgy, Cemented Carbides and Advanced Ceramics will open grandly at Shanghai World Expo & Convention Center, you’re cordially invited to come and join us!

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MA TE

RIA LS R

Talking Shop

RA W

Talking Shop Talc of the town… Gilles Gasgnier, Ceramics Innovation Manager at Imerys Ceramics, discusses how to improve the performance of steatite-ceramics by the application of microcrystalline talc. Talc has been used for years to produce steatite ceramics. It remains the most competitive mineral source of magnesium and silicon oxides allowing reaching the electrical and mechanical properties required by the end use of the steatite products. Typically, more than 85 % of the steatite ceramic formula is talc, the remaining components being mostly shared between kaolin and clay to facilitate the shaping steps and barium oxide to act as a flux during firing without compromising the dielectric properties of the steatite. The type of talc used is driving the performances of the final pieces.

dolomite and/or calcite in the talc. The amount of calcite or dolomite can vary from 2 to 10% of the talc composition, impacting the loss on ignition and deformation during the firing. The calcination of talcs C, D and E allows reducing the loss on ignition and lowering the contraction during firing;

Imerys studied several sources of talc, microcrystalline talc from Australia (3A) and macro crystalline talcs from several deposits in Asia (A, B, C, D and E – Table 1).

Both talcs from Imerys, EC125 from France and 3A from Australia, present a low amount of impurities and it reflects in the final properties of the steatite produced. Moreover they do not need a pre calcination step to reduce the loss of ignition.

• a high alumina content is usually associated with the presence of chlorite. The alumina will tend to combine with magnesium and silicon oxides to form cordierite and then will completely change the final product’s properties.

The challenge of purity and consistency of the talc sources

Figure 1: Microcrystalline talc 3A from Australia (left) and macro crystalline

Micro cristalline to increase steatite density. The lamellar structure of the talc is not the most adequate to facilitate shaping steps whether it is dry pressing or heat pressing (injection with wax). The size and the shape of talc grains are essential. The fine grains present in the microcrystalline talc facilitate the shaping process and allow reaching higher densities (Fig. 1). For example, two combinations of Asian talcs have been tested to optimize the loss on ignition level as well as the alumina and calcium oxides contents. One formula made only with Australian talc was prepared in the same conditions and spray dried. After pressing, the apparent density of the pressed body with Australian talc is respectively 28% and 17% higher than the mix of Asian talcs (Graph. 1).

talc EC125 from France (right).

Talcs from Asia are all macro crystalline with very low amount of chromophoric oxide content: 0.24% to 0.52%. After firing they develop a white colour and they contain significant amount of impurities associated to non-desirable minerals: • a high amount of CaO is usually related to the presence of

Table 1. Chemical composition of talcs.

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Graph 1: Apparent density of pressed discs with different talc mixes.

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Talking Shop

Stable behaviour during firing The use of less pure talcs makes the formula more reactive and it densifies at lower temperature. At 1270°C, Asian talcs formulas are already fully densified. Above 1270°C, the samples are over fired and water absorption starts increasing. The microcrystalline talc formula is fully densified between 1270 and 1300°C and exhibits lower contraction and absorption index (Graph. 2 and 3). This difference could be explained by the presence of impurities acting as fluxes in the Asian talc. Whereas the contraction observed with the microcrystalline talc is lower than with the other talcs. At maximum fired density, the water absorption index is similar between talcs. This lower contraction behaviour could be explained by the higher apparent density obtained during the pressing and the lower loss on ignition of the Australian talc. The higher contraction can be compensated using calcined talc, but with no improvement on the fired density of the fired discs.

Graph 2: Contraction during firing (%).

Off white colour after firing The chromophore oxide content is driving the colour after firing. The formula based on the Asian talcs present a high whiteness whereas the one with the Australian talc is off-white. The colour is not affecting the final mechanical and electrical properties of the pieces when the chromophore oxide content does not exceed 1.2% (Graph. 3). By using 100% Australian talc, the formula will develop a colour categorizing the final product as an off white steatite. There will be less need of iron oxide addition into the formula to develop the off-white colour. By using it in combination with Asian talc in a ratio 1:3, the final colour will be white enough to have the product categorized as a white steatite. Micro crystalline talc increases shaping and fired performances The use of microcrystalline talc such as 3A from Imerys Australia, allows obtaining high density products with shaping processes like pressing. This high level of density obtained during pressing will lead to a lower contraction during firing. In addition to the size of the talc crystals, the low impurity content of the Australian talc will decrease the loss on ignition and make the formula less sensitive to temperature variations. The combination of both characteristics reduces the contraction during firing and the dimensions of the steatite pieces will present smaller variations. Despite an off-white colour not affecting the final properties, the Australian talc can be used alone to produce off-white steatite and in combination with whiter talcs to produce white steatite pieces. Imerys’ technical teams are continuously looking at ways to develop solutions to better meet manufacturers’ needs based on current technology as well as meeting the demands of new technologies and production techniques coming into the market. This knowledge and more is available on Tech Connect, Imerys’

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Graph 3: Modulus of rupture and absorption index as function of temperature.

online technical support platform for ceramic manufacturers. The platform offers four dedicated services: • Troubleshooting: an online area which allowing to research a wide range of solutions for some of the most common technical issues; • Trainings: for its customers, Imerys shares its mineral understanding, how to control raw materials and how to get the maximum out of them; • Testing capabilities: Imerys makes its laboratories available, equipped with an extensive range of test equipment to characterise products in details and consequently help get the most out of them; • Technical documentation: free access to a wide selection of Imerys’ most popular products and numerous specialised articles from magazines and journals. You can access these services by visiting Imerys’ online platform on https://www.imerys-ceramics.com/technical-support Acknowledgments: Imerys Technology Center – Limoges - France

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Insight

INDIA

Table 1

Table 1 2015 2016

2015 2016

2,611,468

2,941,408

2017 Total sanitaryware 2018 imports (no. pieces) 2,163,669 2,820,080

Table 1

Table 1 USA Nepal Japan UAE Saudi Arabia Germany Iraq

1374200 1,666,408

2017 3,752,204 Total sanitaryware exports 2018 2,493,196 (no. pieces)

703,137 195,453 170,096 140,758 115,929 103,055 99,718

Leading sanitaryware export destinations (no. pieces)

China Turkey Italy Thailand Germany Indonesia Spain

2,172,400 117,167 106,407 97,807 84,254 36,587 34,946

Leading sanitaryware import sources (no. pieces)

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Insight

Table 1

Table 1 2015 2016 2017 2018

1,237,690 1,474,939 1,729,663 2,172,400

Sanitaryware imports from China (no pieces)

2015 2016 2017 2018

23,135,776 34,606,685

164,201,022

Total unglazed tile exports (sq metres) 273,980,510

Table 1 2015 2016 2017 2018

29,865,647 10,563,030

Table 1

6,994,033

6,402,509

Total unglazed tile imports (sq metres)

Saudi Arabia United Arab Emirates Mexico Iraq Oman Nepal Kuwait Sri Lanka Israel Yemen

56,153,280 17,810,550

Leading unglazed15,320,272 tile export destinations (sq metres) 17,622,958 16,655,453 14,925,163 10,440,097 8,965,482 5,197,725 7,919,342

Table 1 China Italy Spain United Arab Emirates Turkey Indonesia

Table 1 4,163,340 798,429 789,015

Leading unglazed tile182,032 import sources (sq metres) 73,163 53,770

2015 2016 2017 2018

6,597,603 5,285,916 4,879,564 5,188,044

Total tableware exports (Kg)

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Hunter and the hunted

s e i r o t c a f f o s d e r d n u h d e t i s i h a ve v I “ e m e r t x e e s h t t t a d e r e h g g t h ou g a n ddifafemresntcae s in con dition s" For All the Nellie Kershaws, and Wang Zhaogangs Dear Diary,

Post which grabbed my attention for all the There was a report recently in The South China Morning wrong reasons: the dangers and hazards of pneumatic “We are treated like ants, not humans. If I had known of poor I was”, said Wang Zhaogang, who now how matter no work, the done drilling, I would never have he did to help build Shenzhen into the tech work drilling faces a slow, painful death thanks to pneumatic metropolis it is today. tion, breathing in stone dust which has For five years from 2004, he worked without proper protec . Wang and more than 600 fellow drill patient s silicosi al termin destroyed his lungs and turned him into a workers from Hunan are now petitioning for justice. compensation they were beaten and pepper But when 300 did go to petition the local government for hen government (typically) refused to Shenz the and lized sprayed by police. Dozens were hospita comment. a, potter's rot and other occupationSilicosis (also known as miner's phthisis, grinder's asthm scopicsilicovolcanoconiosis) is a amicro onoultr pneum name d related names, or by the invente line silica dust, and is marked by crystal of ion form of occupational lung disease caused by inhalat lobes of the lungs. It is a type of upper the in lesions r nodula of form the in g inflammation and scarrin pneumoconiosis.’ the pottery industry many years ago now One of the very first things I was taught when I started in breathing in ceramic dust because of the avoid – training safety and health ction was part of the introdu down, I should use the extractor hoods d dampe be should lab danger of silicosis. The workplace, the extractor hood, I should use the dust monitors or booths, I should use barrier protection if there was no any material safety data using whatever follow and of aware made be when asked to do so. I should equipment, I should get the same and tive protec d protection was stipulated. If I didn’t have the require supervisor. The lecture was very good – I was if there was any risk to safety I had to report to my direct g in the lab was still tolerated if frowned smokin when time soon terrified of dust and this was at the upon. new phenomenon and how to prevent it (since The point being – a lung disease caused by dust isn’t a sense. on comm it’s fact, In tood. it isn’t curable) is very well unders s for Asian Ceramics. In 2009 silicosi / rot s potter’ about Now, this isn’t the first time I’ve written certain countries and the lack of in e practic and 2015 I’ve visited the subject with regard to industrial attitude towards industrial disease the and e chang to seems nothing But progress to address the issue. seems little different to 100 years ago. ss towards eliminating it is interesting and The stance taken towards industrial disease & the progre as a miracle mineral with a wide variety ded Regar le. examp an as os asbest we can look at the use of sed in factories that reportedly were proces was os asbest of applications in industry and in the home, 12 feet in front of them. But the industry knew so thick with dust workers could sometimes see only 6 to in Britain noted workers in the industry tors inspec factory 1898 something was wrong. As early as nies in North America were refusing to compa were getting lung diseases. Tellingly by 1918 insurance nsation. By the 1930s inspections compe for claims from them t protec to y ensure workers in the industr due to asbestos e diseas lung had y found that over a quarter of workers in the industr workers had been in the longer the ed increas e diseas of nce prevale the exposure and the industry. really brought attention to However, it was the case of Nellie Kershaw in 1924 that t. Nellie had fallen sick inques an in result to first the was death her as dust asbestos

*The views expressed in this piece reflect those of the author, and not of the magazine or its staff

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she continued to work in the industry until over a period of time, starting at the age of 29, however, a husband and young child. In the time leaving 33 aged died ally eventu and declared unfit to work nd applied to her employer for help husba Her . nsation she was sick she received no aid or compe covered by the government’s national health with funeral costs and was refused. Her disease was not ial disease her employer could and did industr ized recogn a not was it insurance of the time and as doors to many others that they knew the open deny liability especially as accepting one claim could l fibres pierced the lung tissue minera the that ce eviden ble irrefuta found t of. However, the inques to such a point that Nellie oxygen s proces to ability lungs' leading to scarring which reduced to the cancer. Even then when the caused also os Kershaw eventually suffocated. Later it was found asbest ed to lobby to make the manag nies compa the y industr the up clean to government enacted legislation er now we all know Howev tion. produc os asbest of legislation cover only the most extreme dust area os is covered by strict asbest old of ing dispos and ing remov even and causes what harm asbestos regulation in most of the world. regularly staggered at the extreme Now, I have visited hundreds of factories in Asia and am there can be a major disparity between ies countr within Even ons. conditi factory differences in the of spotless factories and factories where raphs photog have I and well-managed factories and bad ones that the dangers of ceramic dust Given set. the dust is so thick it almost seems like some bizarre film os dust it is remarkable that asbest of rs dange the as now tood unders well as are so well understood – . But they are. We can poison a of n…. pollutio of levels factories are allowed to operate with such high knowingly from profits make to tly happy only assume that some companies and owners are perfec away with this as get to d allowe be to they are long How ation. injuring others – there is no other explan so interested in seem don’t ies countr Some bill. ultimately someone has to pay, there is no escaping the nately. unfortu outlawing bad practices, ment had to investigate further and Following the inquest into Nellie Kershaw's death the govern industry for 20 years or more were the in worked by 1930 they had found 66% of workers who had for compensation could follow and claims and n litigatio course of that After e. suffering industrial diseas t to avoid compensation or even attemp an in risks known d once it was proven that companies ignore legal proceedings which more and more risk prevention these companies found themselves facing proceedings force the legal these , heless Nevert pt. bankru go ally often means the companies eventu ts (there is no safe amoun small even as os asbest industry to clean up and find alternates though with exposure. after years many a heliom mesot as such s cancer amount) can cause lessons have not been learned and workers It seems though that with regards simple dust exposure dangers are well known and procedures, the though are routinely exposed to a long-term poison even practices and equipment exist to minimize or nullify the risks. companies and some governments take It all comes down to attitude and greed, unfortunately. Some money. more make to want responsibility and some don’t because they nately, India and it is worth noting unfortu is, ctice One country where I have seen significant malpra there are multiple factory regulations where os asbest to attitude Indian ing regard ent the following comm concerning its use: asbestos usage is prevalent without ‘…there is no enforcement of the rules at ground level, hence following even the simplest basic safety rules.’ thousands of premature deaths and costs to I have no doubt that exposure to dust will result in tens of lose wage earners. Eventually, someone who s familie and nies health providers and insurance compa ang. Zhoug has to pay even when that may be Nellie Kershaw or Wang Until next time 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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In the next issue... AC19-5 Features include

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A FIN E LIN E:

ADVANCED CE RAM ICS IN IN DIA

: E N I L E N I F A IN IN D IA CE RAM ICS

AS FI N E IN FOCU ADV:A

ADVAN CE D

Sanit aryware trends Environmental tile pro duction The US tile industry What next after Brexit ?

: e us at I N FOCUSSe

ryware trends Sanita Plus pr n , analy tiows wsuc , vie e neod sis and much more! til l ta ry Environmen st du in e til The US ter Brexit? What next af AC COVERS.indd 1

ews, Plus news, vi d 1

AC COVERS.ind

analysis and

much more!

CERAFAIR IR AN 10/05/2019

16:32

LI N E:

N CE D CE RA M ICS

10/05/2019 16:32

IN IN D IA

I N FOCUS:

Sanita Environmenta ryware trends l tile produc The US tile in tion dustry What next af ter Brexit? Plus news, vi ews, analysis and much m ore!

AC COVERS.ind

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PLUS: news, views, analysis and much, much more! 10/05/2019

16:32

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