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AC19-6
VISION 20/20
Malaysian technical ceramics
ALSO INSIDE: Pollution control Tableware trade Italian technology
Plus news, views, analysis and much more!
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Contents: AC 19-6 News
Features
2 Inside Asia
26 Technical ceramics in Malaysia
300 and counting for Sacmi…
4 Welcome
Outsourcing from Sri Lanka.
Jahir Ahmed looks at how Malaysia’s pledge to become a fully-fledged member of the advanced manufacturing community by the year 2020 looks set to be realized as its technical ceramics sector comes more to the fore…
6 Across The Continent
42 The challenge of tableware trade
Openings, closures and industry moves from across Asia.
14 International News Our eye on the international arena.
54 Pollution control for Southern Asian brick
20 Material Matters
The ins-and-outs of ceramic raw materials.
Yogender Malik looks at how the sub-continents’ brick manufacturing industry is continually becoming aware of the need to invest in cleaner production technology but questions whether the political will is truly there to make it really happen…
22 Comment & Analysis A slowdown in Italy?
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AC looks at how rising import tariffs are making the tableware industry an increasingly volatile sector and wonders how much more effect the current state of tit-fortat trade spats will have on the trading environment…
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Analysis 60 Talking Shop Dinesh Vyas, senior vice president & head of marketing for H&R Johnson India, talks to AC about the current status of the country’s tile sector and the company’s plans for the future…
62 Insight
Analysis and insight into Italian technology.
66 The Hunter And The Hunted
William Hunter pulls up his chair, spins the globe, and examines the relative merits – and demerits – of India and China…
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Inside Asia 300 AND COUNTING… No, we’re not talking about Sparta…but rather the milestone reached by Sacmi with its latest delivery of a MMC mill to ceramics giant RAK Ceramics, which takes the company’s total sales of the equipment to in excess of 300 units. Back in the mid-1980s SACMI was already busy refining the continuous grinding process, an extremely innovative solution at that time. Indeed, it revolutionised production in terms of efficiency, versatility and the ability to implement growing levels of automation. Since 2005 SACMI grinding solutions have been modular, providing at least 15% more energy savings with respect to the previous range and much more extensive automation.
These solutions combine unique versatility and performance with the total reliability that has won so much customer appreciation: just consider the fact that the first continuous mill, built by SACMI back in 1984, is still in operation. With this latest order - which provides a further boost for the plant where the Continua+ slab/large tile line is installed - SACMI has again strengthened its close partnership with RAK Ceramics. One of the world's top five ceramic companies, RAK produces 110 million m2 of floor and wall tiles and markets them in 150 countries via the Group's numerous branches and facilities, located across five continents.
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CONTACT DETAILS EDITORIAL
utsourcing has been a longrunning issue with Asian ceramics VI SION 20/20 Ma lays ian techni cal manufacturers, but developments cer am ics in Sri Lanka, where one of the industry’s key Groups has revealed it has extended its production to India and China, perhaps reveal a changing dynamic within the ALSO IN SI DE: continent itself. Pollution control Tableware trade Royal Ceramics group, the dominant domestic Italian technology tile and sanitaryware manufacturer, has expanded Plus news, views, analy sis and much more! its contract manufacturing operations and imports from India through a subsidiary to exploit lower costs there. Competition from cheap imports intensified last year, Royal Ceramics chairman Dhammika Perera told shareholders in the company’s annual report. But he said escalating trade tensions between the US and China will provide opportunities for Sri Lankan manufacturers. “We are gearing ourselves to become positioned as a viable alternative manufacturing destination.” The Royal Ceramics group invested four billion rupees in expanding production last year, mostly in tiles. “A large portion of this investment was in Lanka Tiles which now has a state-of-theart plant with the capability to manufacture the larger sizes required in line with global design trends,” Perera said. The group’s tiles manufacturing capacity increased to 41,000 square metres a day from 35,000 square metres a day, Royal Ceramics Managing Director Aravinda Perera said. “Lanka Tiles also expanded the number of contract manufacture operations locations in India from eight to thirteen factories during the year to compete effectively with the imported tiles on price while widening our portfolio,” he said. Lanka Tiles had ventured into India a few years ago with a partnership deal with Ambani Vitrified (Pvt) Ltd. to make digital glazed vitrified tiles at its plant in Morbi, Gujarat, ceramic cluster. It is not just tiles either. Lanka Ceramic – which is part of the group, has said it has revived its sanitaryware business with production outsourced to China. “The company went back to its roots and revived the pioneering business arm of sanitaryware,” Managing Director Mahendra Jayasekera said. “Further, in order to provide superior quality products into the local market, the company has outsourced production to China to provide deluxe brand sanitaryware,” he told shareholders in the company’s just-released annual report. Jayasekera said Lanka Ceramic experienced a downturn during all four quarters of 2018/19 due to work disruptions and restructuring and also delays in getting mining licences. The slowdown in the construction sector also had weakened demand for ceramic products like tiles which had a ripple effect on demand for raw materials like clay. These are certainly interesting developments, and one wonders how many others may soon mirror this approach… AC COVERS.indd 2
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AGL unveils “huge” new showroom facility • Tile prices set to soar • Product-based Expos open door to Foshan… • sanitaryware GST • Duravit China invests in automation • Asean Ceramics gears for September • Industry issue INDIA
AGL unveils “huge” new showroom facility Showcasing the company's production and technological excellence at one place, Asian Granito India Ltd - one of India's leading tiles companies has launched its largest display showroom unveiling the wide range of tiles and Sanitaryware at Himmatnagar, Gujarat. The 25,000 square feet showroom will have an exclusive and elegant range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble & Quartz, etc under one roof. The showroom will also house the newly launched Sanitaryware range. Trusted for reliability, adaptability, innovation, quality consciousness, the company
has created a strong brand identity for itself which is well recognised globally. A must visit for all, the showroom will catch the attention of dealers’ network and customers nationally with a wide range of 1400+ products in all sizes, designs, and finishes in sync with evolving customer preferences. The company also organised a dealer meet during June 16 - 22 and invited its business partners across India to have the look and feel of the exclusive collection. Speaking on this occasion, Kamlesh Patel, Chairman and Managing Director and Mukesh Patel, Managing Director, Asian Granito India Ltd said, "This will be the largest display showroom of tiles and sanitaryware in North Gujarat and will showcase its
entire product range offered by Asian Granito at one place. We had started our journey from a small unit in Himmatnagar in the year 2000 and today have become one of the leading tile brands in India with 10 manufacturing plants, employing over 6,000 people. All our manufacturing plants are located in the surrounding hence we decided to set up the display centre here so that one can have our entire range of products at one location." The company looks to strengthen its identity as the leader in the Indian ceramic industry by consistently introducing innovative and valueadded products in the market to keep pace with its valued customers. Asian Granito India
Ltd today is ranked amongst top 3 listed ceramic tiles companies in India and will focus on highend products such as premium GVT tiles, Nano Crystal, Quartz and Marble etc. In next 2-3 years, company has set a target of Rs. 2,000 crore revenue; Expand retail network to 500 exclusive showrooms and entry in sanitaryware and CP fittings to provide 'Complete Bathroom Solutions'. Company has over 6,500 touch points with dealer & sub-dealer network; 300+ exclusive AGL Tiles showrooms and 13 Company-owned Display Centres across India. Company exports its products to 60 countries and aiming to take the toll to 100 countries in coming time.
percent increase in the price per piece of 20×20 wall tile and 14.1 percent for 20×20 floor tile. The 30x 30 wall tile is also expected to increase by 13.5 percent and the 60×60 by 14.4 percent price hike. In contrast, LKI said the safeguard duty impact on highend tiles would be a lot less than the cheap tiles. For instance, LKI said the Made in Spain ceramic tiles consisting of 9 pieces in a box with total weight of 19.4 kgs costs P1,827.00 per box or P203.00 per piece would have an equivalent increase of P58.20 per box or P6.46 per piece that may be added to the retail price. “The increase per box is 3.18 percent or 1.56 percent per piece, much lower than cheaper tiles,” Dimagiba said. “It appears from these random and sample prices that the
Commission should look into the reasonableness of a uniform pesos per kilo safeguard duty on tiles, without considering different classes as well as uses and users of the product, including its impact on the costs of socialized and lower bracket housing projects,” LKI further noted.
PHILIPPINES
Tile prices set to soar Prices of ceramic floor and wall tiles are expected to rise by as much as 15 percent on cheaper tiles but lower on high-end products with the imposition of safeguard duty on the importation of these construction materials, according to a consumer group. In a position paper submitted to the Tariff Commission, Laban Konsyumer, Inc. (LKI) noted that consumers will bear the brunt of higher prices, especially on the low-end ceramic floor and wall tiles, due to the imposition of safeguard duty amid a strong construction boom in the country. The Commission is currently trying to determine whether or not there is basis of the Department of Trade and Industry’s implementation of the P3 per per kilogram provisional safeguard duty on imported floor
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and wall tiles with 0.5 percent to 6 percent water absorption. If the Commission affirms the DTI decision that, indeed, there has been a surge in importation that caused serious injury to the domestic industry, the provisional safeguard duty becomes permanent. “From the point of view of the consumers, any amount of safeguard duty is an added burden to the cost of goods sold. The safeguard duty partakes of the nature of additional tax on top of the internal revenue taxes on the cost of goods sold,” said LKI President Victorio Mario Dimagiba. Based on preliminary computation, LKI said the impact on prices of cheaper tiles of P3.00/kg can be anywhere of an increase of 15 percent per piece. This may translate to 13.5
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• BOC puts safeguards in place for tiles • Government pushed on es a budget wish-list… • Morbi tile industry may get a fuel price reduction... THAILAND
Product-based Expos open door to Foshan… On April 19-22, 2019, CICPE was successfully held at Tanzhou International Convention and Exhibition Center. With the theme of “Connecting the World, Initiating the Change for the Future”, there were five characteristic exhibition halls with an exhibit area of 50,000 sq metres and more than 300 participating brands, including overseas exhibitors from more than ten countries and regions. The Exhibition was attended by 83,120 professional visitors from all over the world, and the number of visitors increased year by year. The visitors came from 106 countries and regions around the world. During the four-day exhibition, 36 events were held, attracting tens of thousands of visitors to the exhibition, including the new product release fashion show, which displayed new products in a novel way and gathered distributors, designers and terminal customers to discuss the trend of industrial products; not only more than 30 wellknown media have acquired a booth to conduct live interviews but also nearly 100 media attended the exhibition and report on it, with a cumulative exposure of more than 10 million times. In this exhibition, domestic distributors accounted for 29.27%, real estate project buyers accounted for 9.19%, while the industry-focused designers occupied 5.52%, and overseas buyers made up 5.30%, truly covering different groups of visitors from ceramic, bathroom and related industries. Among the overseas visitors, the top two are Asia and Europe, taking up 77.32% and 12.03% respectively, covering the two major ceramic and bathroom products production and
consumption regions. On May 30-June 2, 2019, with the theme of “Value Discovery, Green Symbiosis”, CICEE was successfully held at Tanzhou International Convention and Exhibition Center. The exhibition covers an area of 50,000m2 and there are 5 characteristic exhibition halls, bringing together the world's leading ceramic complete line equipment, kiln, press, raw materials, glaze and pigment, ink, mechanical parts, refractory and wearresistant equipment as well as upstream and downstream products and related services such as intelligent automation and environmental protection equipment technology. During the exhibition, more than 200 domestic and foreign ceramic equipment and materials brands and enterprises gathered for a centralized trade show, and attracted visitors from 36 countries and regions. The attendance of professional visitors from all over the world reached 71,313, and professional overseas visitors accounted for 15.61%. Compared with last year, the number of professional visitors increased significantly. During the four-day exhibition, nearly 30 events were held, and nearly 100 media conducted onsite interviews. Among the overseas visitors, the top eight are Vietnam, India, Italy, Indonesia, Thailand, Russia, Turkey, and Spain, covering several major ceramic production and consumption regions around the world. Talking to AC, the event organisers were bullish about their achievements: “The successful holding of CICPE and CICEE has benefited from the full support and guidance of the People's Government of
Foshan Municipality, the great assistance of commercial and industrial associations, as well as the support of many upstream and downstream enterprises in ceramic manufacturing industry. To host high-quality international ceramic exhibitions – CICPE and CICEE in Foshan, a place with a profound foundation of building ceramics industry, is the common aspiration of the industry for more than a decade, which fully exert the advantages of Foshan's complete ceramic industry chain and thoroughly implement the guiding spirit of the People's Government of Foshan Municipality to create “exhibition in the production base”. Actively build a world
communication platform for ceramic industry, promote the integration of ceramic upstream and downstream, and achieve the development goal of intelligent, informationbased and innovation-driven ceramic equipment and materials industry. “The two consecutive sessions of CICPE and CICEE has become a promotion stage for global new ceramic products as well as new equipment, new materials and new technology. It is a worldwide platform that provides optimized product supply, makes full use of industrial advantages, and promotes international cooperation to achieve rapid development” they added.
CHINA
Belite opts for Intesa digital One of China's leading innovators, the Group - which has invested in cutting-edge Sacmi technology to boost highend wall tile output and establish a new floor tile line - confirms its focus on maximising quality. Ever since its founding in 2004, the Belite Ceramics Group has been a leading Chinese manufacturer of quality ceramic thanks to utilisation of only the very best technology on the market. The three focal points of this new investment plan (the new lines are currently being assembled at the Anyang plant) are efficiency, sustainability and process control. The cherry on the Anyang demo factory 'cake' will be the new DHD-D 1208 digital printers with the new FLS (Frequency Linearization Screening), ITC (Internal Tone Compensation) and SS (Smart
Stitching) print systems. This SACMI-patented technology lets manufacturers eliminate common digital print defects and optimise graphic quality to achieve unprecedented results. The latest-generation DIMATIX digital printers (currently being shipped) will be employed to manufacture high-end ceramic floor tiles. Moreover, to complete the order the customer will take delivery of a cutting-edge multipass digital plotter (DSP 1608), again equipped with the advanced DIMATIX print heads.
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News
PHILIPPINES
BOC puts safeguards in place for tiles The Bureau of Customs (BOC) has issued a memorandum order that imposes a provisional safeguard duty of P3 per kilogram on imported ceramic floor and wall tiles. The BOC said it issued Customs Memorandum Order (CMO) 282019 after the Department of Trade and Industry imposed the safeguard duty on ceramic floor and wall tiles from abroad. “The said duty shall come in the form of cash bonds and shall be imposed in the amount of P3 per kg of imported ceramic tiles,” the BOC said in a statement. The CMO was issued
on June 17 and was signed by Customs Commissioner Rey Leonardo B. Guerrero. “The provisional safeguard duty shall be imposed for a period of 200 days only and shall be applied to specific tariff headings enumerated in CMO 28-2019,” the BOC added. The issuance of the CMO is pursuant to DO 19-06, Series of 2019, which was issued by the DTI as it implements Section 8 of Republic Act (RA) 8800, also known as The Safeguard Measures Act, as well as the implementing rules and regulations (IRR) of the said law.
“DTI determined that the domestic ceramic floor and wall tiles industry suffered significant loss in revenue due to the influx of similar products from overseas, thus diminishing the market share of domestically produced products from 96 percent in 2013 to a measly 15 percent share in 2017 and 2018,” the BOC said. “The determined loss in market share lead to revenue losses for local enterprises, prompting the imposition of a provisional safeguard duty on imported tiles,” it added. Last month the Philippine
INDIA
Government pushed on sanitaryware GST The sanitaryware industry has urged the Centre to rationalize Goods and Services Tax (GST) to 5 per cent from the existing 18 per cent to pare down the cost and encourage personal hygiene. The manufacturers hoped that the Union Budget, which is slated to be presented on Friday, would pave the way for the GST Council to take the measure. As part of the Swachh Bharat mission, it is important to make sanitaryware products available at an affordable rate to people, RB Kabra, the director of
Indian Council of Sanitaryware Manufacturers, said. "The manufacturers have therefore requested to the GST council to lower the rates from the current 18 per cent to 5 per cent and help improve sanitation levels in the country," Kabra said. Echoing similar sentiment, Roca Bathrooms Products managing director KE Ranganathan said toilet penetration in India hasn't exceeded 60 per cent, while it has crossed 90 per cent in some of the neighbouring countries. Sharing his expectations from the upcoming Budget,
Ranganathan said, "The basic hygiene products and other bathroom fittings like taps are taxed at 18 per cent. Many representations have gone to the government to lower them to 5 per cent to help improve the sanitation level." He also added that with the BJP registering a thumping victory in the recently concluded Lok Sabha elections, the expectation of a "growthoriented and people-friendly" budget from the saffron partyled central government has risen manifold.
CHINA
Duravit China invests in automation A global player in the high quality designer sanitaryware field, Duravit continues to take its investment in China in the direction of total automation at every level, from handling to glazing. Now, a further two ultra-modern LGV vehicles built by SACMI-Nuova have been supplied and are already fully operational at the cutting-edge Chongqing plant. This order brings the total number of latest-generation laser-guided SACMI vehicles dedicated to piece handling and
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storage - at this Chinese plant to thirteen. More specifically, these two latest vehicles are part of a wider-reaching production expansion plan that will, by the end of the summer, also see the installation and startup of a new SACMI robotized glazing line. Inaugurated in 2017, the Chongqing plant remains one of the country's - indeed, the entire region's - biggest manufacturing facilities. Packed with SACMI technology, the plant is based on fully
4.0 sanitaryware production process management, especially as regards the smart management of manufacturing flows. Continuous increases in production and the growing strategic importance of this Chinese plant have stimulated further investment in internal automation by Duravit, the goal being to boost plant productivity thanks to the quality and reliability of SACMI-supplied industrial automation solutions.
Ceramic Products Importers Association Inc. said cheap tiles used for low-cost housing could increase prices by as much as P33 per piece once the safeguard duty on ceramic floor and wall tiles takes effect. Napoleon Co of the Philippine Ceramic Products Importers Association Inc. said the P3 per kg safeguard duty on ceramic floor and wall tiles will be a burden to property developers. The DTI imposed in May the P3 per kg safeguard duty on imported ceramic floor and wall tiles to protect local manufacturers.
NEWS IN BRIEF Head of Iran Tile and Ceramic Producers Guild Association Mohammad Roshanfekr said Saturday that the country produced 400 million square meters of tile and ceramics last year (ended Mar. 20, 2019), showing that exports of tile and ceramics in the same period increased 10 percent as compared to the previous year’s corresponding period. The capacity of equipment and machinery installed in this sector exceeds the current production capacity between 35 and 40 percent at large, he reiterated. He further noted that Iran managed to export about 121 million square meters of tiles and ceramics in 2017. He reiterated: “Statistics in 2011 and 2012 showed that Iran stood at 5th rank after China, India, Brazil and Spain in terms of tile and ceramics production.” Another statistic indicated that 80 percent of the manufactured tiles and ceramics hit the domestic consumer market in previous years which the rest was exported to neighboring Iraq and target export markets, Roshanfekr added.
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THAILAND
Asean Ceramics gears for September Asean Ceramics 2019, the international exhibition of technologies and materials for the ceramic and brick industries, will be held from 28 to 30 August in the Impact Forum in Bangkok. An important meeting point for the Southeast Asian ceramic industry, the show’s new location was chosen for its larger exhibition space and proximity to the main areas of ceramic production. A number of international exhibitors will be participating, coming from Italy, UK, Germany, Vietnam, South
Korea and India. The international promotion will also be expanded in South East Asia, thanks to the partnerships with the ceramic tile manufacturers’ national associations. In addition to the Innovation Print Asia Congress, for the first time Asian Ceramics will also be hosting the International Conference on Traditional and Advanced Ceramics which looks at the latest research in the field of traditional and advanced ceramic materials.
Another important event will be the 8th edition of the AsiaOceania Ceramic Federation Conference, which will host delegates from Japan, Taiwan, South Korea, China and Australia along with guests from India, Vietnam, Philippines, Malaysia, Indonesia and Singapore. Asean Ceramics is organised biennially by Asian Exhibition Services Ltd with the support of the Ceramics Industry Club of Thailand headed by SCG and part of the regional federation
CICA (Ceramic Industry Club of ASEAN). The 2017 edition of the show set a new record for participation with 205 exhibitor companies and more than 4,800 visitors from 46 countries. According to the forecasts, by 2025 the ceramic sector in the ASEAN region will reach a value of $69.08 billion, driven by growth of the construction industry and the increase in public spending for infrastructure development (+$93 billion in 2017).
INDIA
Industry issues a budget wish-list… Indian ceramic industry is estimated at around Rs. 35000 crore to Rs. 40000 crore and growing at healthy single-digit employing over 6 lakh people in direct and indirect employment. 40% of the industry is organized while 60% is with small players in Morbi, Rajkot and other clusters. The industry will continue to play an important role in the economic growth in the future and aim for global leadership in the industry and success of 'Make in India'
Kamlesh Patel, MD of India’s thirs largest ceramic tile producer Asian Granito says, “We expect the government in its first budget of the second term to continue special thrust on the rural economy, social sector reforms, infrastructure and housing sector. Finance Minister needs to adopt softer interest rates for a timebeing and roll out a bigger tax benefit for individual and corporate aiming at increasing the investment - capex cycle,
giving a boost to demand cycle aiming healthy GDP growth. Indian Ceramic industry would aim for a green and environment complaint industry and we welcome the National Green Tribunal ruling to shift to greener fuel. Further, the industry wants the government to ensure maximum compliance for GST and strict implementation of e-way bill.” He further says, “Tile is an essential commodity and not a luxury commodity and
INDIA
Morbi tile industry may get a fuel price reduction Gujarat Gas Ltd is mulling a 10% price cut for the natural gas it supplies to Morbi–India's largest ceramic manufacturing cluster–from next month to prevent tile makers from shifting to alternate fuels such as propane, which are available at cheaper rates, company sources said. Currently, Gujarat Gas supplies natural gas to ceramic makers in Morbi for around 30 rupees per mscm. The prices are benchmarked to that of its nearest competitor fuel–propane, which sells for around 32 rupees per mscm. However, with crude prices falling globally, propane is
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now available at 28 rupees per mscm. The prices of propane are likely to drop to less than 24 rupees per mscm soon. Gujarat Gas had seen a spurt in demand for natural gas supply to Morbi–from 2.5 mscmd to 6.5 mscmd– following a National Green Tribunal order earlier this year that asked ceramic units using coal gassifiers to shut down. The tile makers subsequently switched to natural gas as global prices of liquefied natural gas were lower than those of alternate fuels such as propane. State-owned GAIL (India) Ltd is also exploring possibilities of
entering the lucrative market, which is expected to grow to 8.5 mscmd if the units are able to strike a deal with US firms to divert business worth 200 bln rupees from China following the trade conflict between the two countries. Gujarat Gas currently distributes about 8.5 mscmd of natural gas through its 23,200-km pipeline network, and 344 compressed natural gas stations, to 13.55 mln households, 200,000 vehicles, and 3,540 industrial customers across the state. Morbi currently accounts for almost 80% of its total gas sales.
essential in housing and Sanitation hence we request the government to lower the GST to 12% from the current 18%. Power and fuel (largely gas) costs account for around 20-25% of revenues for the tile industry and we would like the government to rationalise the same through lowering duties. To boost exports, we want the finance minister to introduce incentives for exports or exempt profit from exports as provisions earlier.”
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PHILIPPINES
NCC aims to boost domestic pottery sector The National Crafts Council has laid out an ambitious plan for the growth of the country’s pottery industry, which was on the verge of dying. “The biggest goal of the Crafts Council is to infuse new life into the pottery industry in Sri Lanka which is not vibrant enough at the moment. The industry has great potential to grow in terms of introduction of advanced technology and the improvement of the product,” National Crafts Council Chairperson Heshani Bogollagama told the Daily News. The National Craft Council has taken measures to update the technology by improving processes and adding modern machinery. It has implemented a programme to develop Pottery Villages under the Entrepreneurial Village Development Programme of the Industries and Commerce Ministry. Under this programme, the council has taken measures to provide electrically operated potter’s wheels and other
equipment for the beneficiaries and also to improve infrastructure facilities of these villages. “The Pottery Village Mangala Samaraweerapura in Matara developed under this programme at the total cost of Rs. 2.5 million was vested with the public recently,” the Chairperson said. Under the programme of establishing ‘Shilpa Saviya’ sales outlets, the Crafts Council has taken measures to establish sales outlets countrywide to provide opportunities for craftsmen to sell their products without going through a mediator. “The ‘Shilpa Saviya’ sales outlet established in Molagoda, Kegalle, one of the oldest pottery villages in the country was opened on May 16 under the patronage of the then Deputy Minister of Industry and Commerce Buddhika Pathirana,” the Chairperson said. “In line with the ‘Shilpa Abhimani 2019’ Presidential Handicraft Award Ceremony, a series of
TURKEY
awareness workshops were conducted in the Nuwara Eliya, Matale and Kandy districts recently. Through these workshops, we make our craftsmen aware of new market trends and modern technologies,” she said. Industries Department (Western Province) Director D.M.N. Chandradithya said that the unwillingness among traditional potters to change their traditional practices, the low availability of raw materials and young people opting to work in the garment industry have badly affected the growth of this industry. “Currently, there is a huge demand for fancy items and buffet sets made out of clay, locally as well as internationally. But, our traditional potters do not like to change. They just try to earn some money by making pots or other ordinary products,” she said. The Director further added that the present generation does not like to continue the pottery
industry as they want to earn money easily. The Production and Training Centre of Clay Articles situated in Bandarawatte, Biyagama, provides designs and service facilities for individual traditional potters in the Pottery Village Weerasekarapura to continue their industry apart from the usual production of the centre. “The Industries Department (Western Province) introduced short-term training programmes for young people who are willing to engage in pottery. We have also introduced new products and designs such as handmade ceramic jewellery production,” she said. She further said that the country’s first-ever dedicated Pottery Museum has been set up at the Production and Training Centre of Clay Articles in Biyagama. It houses a collection of fascinating pottery items catalogued as household items, vessels for religious purposes and red clay products for construction.
CHINA/BRAZIL
Manisa set for expansion by year-end Ceramic filter imports in SACMI is the main partner for the supply of all the key technologies incorporated in the production line at Manisa, a new Turkey-based sanitaryware company in the same-named town near Izmir. Equipped, at this initial stage, for an output capacity of some 300,000 pcs/year (expected to increase to a fully operational capacity of about 750,000 pieces by the end of 2019), this plant has been designed with quality in mind and will produce a broad mix of Vitreous China and Fine Fire Clay articles for high-end international sanitaryware markets. SACMI has supplied the entire body and glaze preparation department. Moreover, downstream there are two integrated high pressure casting centres equipped with two AVM casting modules each plus two mould and de-moulded piece handling robots. Further on lies a new dryer featuring an automatic
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car infeed/outfeed handling system, supplied by SACMI Istanbul. Completing the investment is a robotized glazing station with 4-position turret (ready for a doubling of capacity) and two brand new HWS Pulse Firing Riedhammer shuttle kilns, each equipped with six 2 or 3-level cars to provide a total load capacity of 560 pieces. These kilns allow for flexible production of both Vitreous China and large Fine Fire Clay articles (e.g. the large washbasins particularly popular on UK-US markets). Moreover, SACMI is already in the process of supplying a 93-metre long TWS tunnel kiln (plus a 9-metre pre-kiln) that will let the firm raise annual production to over 750,000 pieces by the end of 2019. That same forward-thinking logic will see an extension of the casting department with the installation of 5 new robotized casting centres.
dumping row
The Brazilian Secretariat of Foreign Trade has published the Circular SECEX No. 39/2019 in the Official Gazette. It has initiated, in Brazil, a sunset review process of the anti-dumping duties applied on the imports of refractory ceramic filters, from China. The product under investigation is commonly classified into positions 6903.90.91 and 6903.90.99 of the NCM (Mercosur Common Nomenclature, which is based on the Harmonized System up to the first 6 digits). The review was requested by Foseco Industrial e Comercial, representing the domestic industry. The period of investigation is from January to December 2018 for the dumping analysis and from January 2014 to
December 2018 for the injury analysis. The interested parties (foreign producers/exporters, as well as the Brazilian importers) will receive questionnaires in the next days. Responses are due within 30 days and only questionnaires properly returned will be considered for the purposes of setting provisional and final duties. Exporters participating in the sunset review will be able to influence the outcome of the investigation and to ensure that any mandatory duties are based on accurate data. Moreover, the cooperating exporters may be subject to individual dumping margins, which tend to be lower than the “all others” margin and, in case of extension of the anti-duties, benefit from the application of the “lesser duty”.
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PAKISTAN
ACPCTMA pushes for sales tax inclusion All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) has urged the government to reconsider the inclusion of Ceramic Tiles in the Third Schedule of the Sales Tax Act 1990 as it will have negative impact on the industry which is already fighting for survival. The government has included “Tiles” in the Third Schedule of the Sales Tax Act 1990 “STA 1990” vide Finance Act 2019 whereby it has been made mandatory to print retail prices on each box of tiles. The spokesman of All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) in a statement said that there are a number of reasons for which this product [tiles] should be removed from Third Schedule. “It is not practical for the manufacturers to print retail prices on each box since the manufacturing process and nature of plant are not that
simple that may allow immediate printing of prices on tiles boxes,” said the spokesman. “Unlike FMCG products, tiles fall under the category of “Durable Products” and these are produced and sold on order-to-order basis in different regions at different prices due to variable freight cost,” he added. These are consumed over a longer period of time and in some cases, where a design or type of tile is stuck, it may remain in stocks for more than one year. “Moreover, tiles are produced in various grades and types in hundreds of thousands of varieties which makes it impossible to print prices on each box. The inventory of tiles may be carried for years in the warehouses by a manufacturer and due to its weight, it is impossible to change prices on boxes once it is out from production hall,” reasoned the spokesman.
Earlier, he added, in the Finance Bill the product "Tiles" was specifically excluded from the scope of Third Schedule but surprisingly when the bill converted into Finance Act and published in the official Gazette of Pakistan it included tiles in the Third Schedule of STA 1990. “The retail prices may change due to increasing cost of production and devaluation of Pak rupee and it may create complications for the manufacturers carrying huge inventories in their stocks,” said the spokesman. In the field of ceramic tiles, added the spokesman, the prices cannot be fixed for all customers as customers demand heavy discounts and there are different types of customers in the market to whom different trade discounts have to be offered. “There are corporate discounts, bulk buying discounts, territory-wise different discounts, etc. which a
manufacturer has to offer in order to retain a customer,” stated the spokesman. He added that the ceramic tiles market is led by imported tiles and there is a huge influx of imported tiles in the local market, hence the local manufacturers are following the day to day changing trends in the variety of tiles coming from various sources of imports. “A manufacturer has to produce new designs and varieties on daily basis in line with the newer varieties of imported tiles which are sold at different prices according to their respective manufacturing costs,” said the spokesman. “FBR should allow at least one-year time to the local manufacturers (if tiles are kept in 3rd schedule) to comply with the requirements of printing retail price on each box as currently none of the manufacturer has basic infrastructure to comply with the requirements”.
ADVERTISER FEATURE
BMR USA: THE AFFIRMATION OF TECHNOLOGY IN THE USA Within the US ceramic market, BMR continues to consolidate its position thanks to the Crossville, Tennessee site, inaugurated in 2017 after a first opening in Dickson. Here in the ceramic valley made in the USA, BMR USA stands as a veritable logistics hub stocked with a wide range of spare parts that allows it to manage supplies and requests for technical assistance even faster and more efficiently. The recent creation of the workshop for the regeneration of the squaring and, soon, also of lapping mandrels, also allows for an increase in the offer of services for the companies within the district, many of them Italian, which until now were made prohibitive by the transport costs to and from Italy. The value of BMR's US headquarters is therefore perceived as a real plus and allows the link between the Scandiano company and the most important ceramic companies in the USA to be further consolidated. An important example is that of Florim which, in its production site in
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Clarksville-Tennessee, has installed a full-tile lapping line and stainproofing treatment relying on the BMR technology of the respective LevigaPlus and Supershine machines. The Florim USA plant was completed with a cutting and squaring line composed of Dry Cut and Top Squadra Dry, recently integrated with an identical second one. Even StonePeak Ceramics chooses BMR and does so by signing with the Scandiano (RE) company the installation of the first plant in the USA dedicated to the supply of large slabs and its sub-formats. This important production complex established in 2005 in Crossville that records a tile production of about 6 million square meters/year, has purchased from BMR three finishing lines composed of 2 squaring lines and a lapping line with treatment island, all dedicated to large sizes 1600 × 3200 mm. This is a further affirmation of the value of ceramics Made in Italy on the American market, where aesthetics and technology are the guarantee of the best quality standards recognized throughout the world.
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Ceramic industry growth continues Africa
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conomic growth (GDP is estimated at +4,1% in 2018 and 2019), together with the rapid urbanisation, the increase of disposable income and consequently the growth of private consumption are fostering the development of the ceramic industry in the African Continent. In 2017, total tile consumption in Africa reached 920 million sq.m following uninterrupted growth with volumes more than doubling over the previous nine years (CAGR +8.9% 2017/2008). While local productionfollowed a similar trend, increasing from 308 million sq.m in 2008 to 700 million sq.m in 2017 (CAGR +9.5%), it
was still insufficient to fully meet demand. As a result, the African continent continues to be the third largest macro-region for world ceramic tile imports. The percentage of consumption met by imports rose to 55% in the period 2013-2014, then declined gradually over the following years to reach 33% in 2017. In the period 2015-2018, imports to Africa fell by more than 120 million sq.m, dropping below 300 million sq.m last year. Around 77% of total 2018 imports were met by the top three supplier countries, namely China, Spain and India, which together exported a total of 230.9 million
sq.m to Africa. Spain has a stronger presence in North Africa, whereas China and India are more focused on Sub-Saharan Africa with several shared markets (including South Africa, Senegal, Kenya, Tanzania and Angola). However, these three countries have seen rather different and even contrasting growth trends. Whereas India and Spain maintained positive growth in 2018 (respectively +48% and +13% compared to 2017), China – by far the largest exporter to Africa – suffered a sharp slowdown (-20.8%). In some markets the Chinese downturn can partly be explained by competition
from India, while in others it is clearly attributable to the greater manufacturing autonomy achieved by local industry. A case in point is Nigeria, which imported 74 million sq.m from China in 2014 but just 5 million sq.m in 2018, while domestic production has expanded rapidly to reach 100 million sq.m/year. Kenya, Angola, Ghana, Tanzania and Uganda have all reached outputs of between 10 and 30 million sq.m/year as a result of direct and indirect Chinese investments, part of a strategy of offshoring production to the African countries with strongest commercial and investment ties with China.
Tile industry rankings revealed Italy
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he growing competition from other ceramic producer countries and the increasingly widespread use of alternative materials such as vinyl are the main causes of the slowdown experienced in 2018 by the Italian ceramic tile industry, which saw its revenues drop to 5.4 billion euros, down 3% on 2017. This slowdown follows five years of uninterrupted growth and with very few exceptions is reflected throughout the results posted by the top groups and companies in the sector. These figures were published in the exclusive annual study conducted by the magazine Tile Italia (“Italian ceramic tile companies, revenues 2018”, Tile Italia 3/2019). This league table of excellence is summarised below, although readers should note that the figures for Marazzi Group (one of the top Italian groups) and Emilgroup are not present in the rankings as they are included in the overall financial results of Mohawk Industries. The rankings of the top Italian groups with revenues above 200 million euros have remained unchanged. Although Concorde Group does not publish its operating data, it remains firmly at the top of the rankings along
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with its many companies and brands in Italy, France, Russia and the United States. Iris Ceramica Group remains in second place with consolidated revenues of 485 million euros (down 17.8% on 2017), returning to just above 2015 levels following the record performance of 2016-2017. Next come Finfloor Group with consolidated revenues of 410 million euros (down 3.5% on 2017), Panariagroup with 371 million euros (-3.5%) and Casalgrande Padana, which remains stable at 2017 levels with 263.8 million euros (-0.5%). Rounding off this first group is Coop. Ceramica d’Imola with a 9.1% fall in revenues to 222.5 million euros. Unlike the four largest groups which are all highly internationalised in terms of production, it is worth noting that both Casalgrande Padana and Coop. Ceramica d’Imola have manufacturing operations based exclusively in Italy. The mid-range segment, consisting of groups of companies with revenues of between 100 and 200 million euros, is led by Italcer group with revenues of 198.9 million euros following the acquisition of Rondine Group (revenue of 110.2 million euros in 2017) in October 2018. Founded less than two years ago, the group
led by Graziano Verdi continues to take rapid strides towards its goal of a 300 million euro turnover. The Faetano-Del Conca group saw a 6.7% fall in revenue to 157.2 million euros, followed by Ricchetti Group with a 6.5% contraction to 151.6 million euros. Next, Gresmalt consolidated its double-digit 2017 growth with revenue of 132.8 million euros (+0.5%). ABK Group also performed well, maintaining its 2017 level of consolidated revenues of 110 million euros. Laminam reached 110 million euros and once again recorded the highest growth percentage of the entire sector: +29.4% following the +25% of 2017 and the +36% of 2016. On 23 April, the fund Alpha signed an agreement to acquire a controlling interest in Laminam, while CEO Alberto Selmi further increased his stake in the company. Last in the second group of companies is Romani Group with revenues of 105 million euros (+1.2%). Amongst the companies with revenues below 100 million euros (the rankings only include companies that supplied figures) are Ceramico Piemme Group (98.1 million euros, -5.7%), followed by Fincibec Group (stable at 81.2 million euros) and Italgraniti
Group (80.4 million euros, -1.5%). Standout performances include 8.1% growth by Gold Art Ceramica – EnergieKer (76.4 million euros) and the sixth consecutive growth year recorded by Polis (61.5 million euros, +1.5%). Novabell (+2%) and Tuscania - CMC (+5.7%) also performed strongly.
NEWS IN BRIEF Italian ceramic production will be established in Armenia, Minister of Economy Tigran Khachatryan said during the first Armenian-Italian Business Forum in Yerevan on June 10. “Several months ago we were talking with the Ambassador of Italy about a company that is engaged in ceramic production and has plans to establish a factory in Armenia and have markets in the US and Europe. Today the company has already imported its equipment and the staff who will work in the factory, has sent them to Italy for training and will start releasing and exporting goods within 2-3 months”, the minister said.
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Kyocera to complete Friatec purchase Germany
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yocera Corporation has announced that its Germany-based European headquarters, Kyocera Fineceramics GmbH will acquire the advanced ceramics business operations of Friatec GmbH (“Friatec”), a manufacturer and seller of ceramic and plastic components based in Mannheim, Germany through a newly established subsidiary. Friatec has over 150 years of experience in ceramics innovation dating back to its founding in 1863.The operations will be transferred to the subsidiary Kyocera Fineceramics Solutions GmbH in autumn 2019. Closing of the acquisition is subject to completion of regulatory filings and obtainment of approvals from administrative authorities, which are necessary under anti-trust and investment related regulations etc. in relevant countries.
Since its founding in 1959, Kyocera has provided advanced ceramic components for a wide range of markets, including industrial machinery, information devices, medical devices, and environmental preservation / renewable energy equipment. The company has supported various industries by utilizing technologies cultivated through its research, development, and production of fine ceramics. In April 2019, Kyocera acquired H.C. Starck Ceramics GmbH (now: Kyocera Fineceramics Precision GmbH), a Germany-based company specializing in non-oxide fine ceramic components. The acquisition gave Kyocera its first fine ceramic manufacturing facility in Europe, strategically positioning the company to meet rising demand for fine ceramic components used in industrial machinery.
By subsequently acquiring Friatec’s ceramic business, including its main lineup of oxide and metallized ceramic components and a European manufacturing facility capable of producing these products, Kyocera will be able to offer customers comprehensive service through local production and sales. Kyocera also aims to further expand its fine ceramic business by strengthening its capabilities for developing and supplying Kyocera Corporation the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of semiconductor packages, industrial and automotive
components, electronic devices, solar power generating systems, printers, copiers and mobile phones. During the year ended March 31, 2019, the company’s consolidated net sales totaled 1.62 trillion yen (approx. USD14.6 billion). Kyocera appears on the “Derwent Top 100 Global Innovators 201819” list by Clarivate Analytics and is ranked #655 on Forbes magazine’s 2019 “Global 2000” list of the world’s largest publicly traded companies.
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State-of-the-art biscuit kiln system – made in Germany Germany
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he porcelain manufacturer BHS tabletop AG has invested in a new biscuit kiln system for its factory in Schönwald, Germany. This features a tunnel kiln supplied by Keramischer OFENBAU GmbH and an automation system supplied by Lippert GmbH & Co. KG. The system was inaugurated early in May in an official ceremony with representatives from the worlds of politics and business, as well as from the companies involved. The state-of-the-art tunnel kiln for firing high quality porcelain for the restaurant and catering sector (flatware and hollowware) is 56m long and has been designed to output 13 million items a year. The kiln is fitted with the IBF system, a firing concept developed by Keramischer OFENBAU GmbH for firing isostatically pressed goods specially in stacks in order to improve temperature uniformity and significantly reduce susceptibility to cracks
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in the firing process. It also features EnerVIT heating, in which the high velocity burners work in a highly efficient manner, with complete flame monitoring. Using LIPPERT’s automated kiln car stack unloading and kiln furniture separation processes, the stacks of bats are inserted and removed from the kiln car completely automatically in rows, and are then separated in a further step. Each bat can therefore easily be loaded with products directly, from above. This automated stacking achieves a considerably higher filling density than when directly loading and unloading the kiln car manually. A higher filling density is an important factor in ensuring energy-efficient firing processes. Furthermore, rejects caused by the products touching the kiln furniture are prevented. The system has been designed so that fully automated product loading and unloading can be retrofitted later. All in all, this state-of-the-art
system represents a milestone in the history of the Schönwald factory, thanks to the increase in production capacity and more flexible manufacturing while at
the same time reducing energy consumption to 65% of that of its predecessor system, with the resulting positive effects on the carbon footprint.
Keramischer OFENBAU and LIPPERT present a new, automated and highly efficient biscuit kiln system to BHS tabletop AG (from left to right): Hans Zeis (project leader, control technology, LIPPERT), Adrian Arrago (controller, Keramischer OFENBAU), Winfried Hein (CTO, LIPPERT), Walter Ermer (project leader, BHS tabletop), Rainer Schwarzmeier (chair, production and logistics, BHS tabletop), Thomas Alten (managing director, Keramischer OFENBAU).
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Sacmi takes share in BMR Italy
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acmi’s acquisition of a 20% share in BMR, finalised on 4 July, seals a long-standing industrial and technological partnership in the end-of-line ceramic processing stage. BMR’s chairman Paolo Sassi notes that the two partners have common commercial and industrial development goals and that the operation will strengthen
their ability to offer the market comprehensive customised solutions. BMR is the acknowledged leader in the ceramic finishing segment with a wide range of squaring, cutting, lapping and surface treatment systems. “Sacmi’s acquisition of a stake in BMR strengthens its role as a one-stop shop for all stages of the ceramic production process,
from raw materials through to the finished product,” explained Sacmi Imola chairman Paolo Mongardi. The operation is part of the Imola-based group’s long-term strategy aimed at integrating the various processing stages downstream of the kiln to meet growing demand for customised products, resulting in a shorter time-to-market and
more efficient management of small production batches. Finally, it will generate technological and commercial synergies and further expand the Customer Service proposition by combining the coverage of the Sacmi Global Network with the consolidated experience of BMR, already a major partner of leading ceramic companies the world over.
Siti B&T moves on Diatex Italy
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ITI B&T Group SpA, a supplier of technology and complete systems for the global ceramic tile and sanitaryware industry, listed on the AIM Italia market has announced that it has signed a binding purchase contract for the acquisition of 75% of the shares of Diatex SpA of Villaverla (VI) active in the production of diamond tools for stone and ceramics processing. Diatex S.p.A. is a providing customers with the tools used by the squaring and cutting machines and for finishing the final product, including the
machines produced by Ancora, a SITI - B&T group company specializing in ceramic tile finishing. In 2018, Diatex S.p.A. generated a turnover of 10.7 million Euro, reaching a normalized EBITDA of 1.9 million Euro and the Net Financial Position of the company at 31.12.2018 was 1.2 million Euro. “This acquisition - comments Fabio Tarozzi, CEO of SITI B&T Group - allows us to exploit new synergies with finishing technologies (by the company Ancora) to be able to offer new high-performance products and new services to customers.
With this operation, Diatex will also benefit from the Group's international network to give a strong boost to exports”. The acquisition of 75% of the company shares took place at a value of 7.5 million Euro, whose payment is expected to be 6 million Euro at the closing set for December 2019 and for 1.5 million Euro at 30 months from closing date. Put & Call options have also been provided for, to be used after 5 years on the residual shares whose price will depend on the value of the company on the date the option is exercised.
KEDA looks towards DRC Kenya
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hinese ceramics firm, KEDA Ceramics is exploring exports to the Democratic Republic of Congo (DRC) and South Sudan. Li Ruiqin, managing director of KEDA (Kenya) Ceramics said that the company already exports to Tanzania, Uganda and Rwanda about 30 percent of all production from its manufacturing facilities in Kenya. "We are exploring new markets in East and Central Africa such as DRC and South Sudan which have growing demand for ceramic products," Li told Xinhua during a tour of the KEDA Ceramics
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factory located in Kajiado county about 60 km south of capital city, Nairobi. KEDA (Kenya) is a joint venture incorporated on 2016 by KEDA Clean Energy and SUNDA international. Li said that his organization currently has a daily production of 60,000 square meters of ceramic tiles on its 60 acres manufacturing facility. "We have two tile production lines with an investment amount of over 56 million U.S. dollars (5.7 billion shillings)," he added. According to KEDA Ceramics, the firm has so far created 1,500 job opportunities, including
1,000 local employees and other jobs in the supply chain and distribution network. He noted that the firm has a strong localization focus with over 95 percent of its personnel being Kenyans. Li said that his firm has been able to expand its sales and market share in the East African region due to heavy investments in research which has resulted in production of innovative products. "We were the first company in Kenya to introduce water proof tiles, which will revolutionize the construction sector," he revealed.
The acquisition process was coordinated for SITI-B&T by advisors K Finance (Milan) and S.CO.A. (Bologna).
NEWS IN BRIEF The European Commission has completed the acquisition of feedback on a proposal to lower heavy metal limits in ceramic, glass and enameled table and kitchenware. Current lead levels vary from 0.8mg/dm2 to 1.5mg/l and 4mg/l, depending on the article, and cadmium levels vary from 0.07mg/dm2 to 0.1mg/l and 0.3mg/l, depending on the article. New scientific evidence has indicated that current limits on lead and cadmium in these food contact materials (FCMs) should be revised so as to provide adequate health protection. The EU is also considering setting new limits for other metals. It aims to align EU law on glass and enamelled metals. The feedback period ran from 29 May to 26 June and is now being evaluated.
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Raw Material News
Improving the functional and aesthetic characteristics of matt glazes with Spectrum® Matt glazes give tiles a wonderfully natural look and open up endless design possibilities. But creating a matt glaze that is also functional (in terms of ease of cleaning and resistance to scratching and chemicals) can be very challenging. In addition, the trend towards large format tiles means that manufacturers need to minimise glaze-related pinhole defects in order to reduce costly volumes of fired waste. Drawn from Sibelco’s unique deposits in Norway, Spectrum® N45 nepheline syenite enhances the aesthetic and functional characteristics of matt glazes in a number of ways, as well as helping to reduce production costs.
Improved scratch resistance and lower costs In comparison to other nepheline products, Spectrum’s higher alumina content improves scratch resistance. It also means that the glaze formula needs less amounts of expensive calcined alumina, and less clay and kaolin, too much of which can adversely affect glaze slip rheology and aesthetic surface appearance. When used in place of feldspar, Spectrum® reduces the melting temperature of the glaze (thanks to high levels of sodium and potassium) thereby helping to reduce overall energy consumption. Spectrum® also has a higher coefficient of thermal expansion (CoE) than a standard sodium feldspar, making the glaze CoE more compatible with the CoE of the tile body to improve the body-engobe-glaze fit. In terms of firing temperatures, Spectrum® is extremely stable up to 1070 °C whilst sintering and softening points are close to the firing temperature for glazed vitrified tiles (GVT).
with a glaze made with Spectrum® were easier to clean than those made with other nepheline products. When whiteness matters, Spectrum® N45 again outperforms alternative nepheline products, thanks to low levels of iron oxide and titanium dioxide (0.21%). And because of the purity of our deposit in Norway, Spectrum® has a higher nepheline content than alternative products and contains no free quartz.
Reducing waste Using higher quality materials such as Spectrum® N45 helps to significantly reduce problems with pinholes, thereby reducing waste rates. This is even more important when glazing slabs, as a defect on a 1.5m x 3m piece means a lot more wastage than a defective 60cm x 60cm wall tile. Sibelco’s nepheline syenite deposit sits in a challenging location in the north of Norway, close to the Alta Fjord in the Arctic Circle. Sibelco has a long reserve of over 80 years and today Spectrum® is exported to customers around the world for use in a wide range of applications including ceramics, coatings and plastics.
Conclusion Nepheline syenite plays an important role in matt glaze production. Using highquality materials such as Spectrum® can help to significantly improve the functional and aesthetic properties of the matt glaze and finished tile, as well as reducing overall production costs.
Achieving a good balance between ink colour development, matt level and whiteness
Free of magnesia and with a barium oxide content of 0.4, our laboratory tests show that Spectrum® N45 enhances digital ink colour development whilst delivering a good level of matt glaze surface. It therefore outperformed other nepheline products in the tests, which either delivered good colour development but a lower matt, or a higher matt but lower colour development. Our tests also showed that GVT tiles
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Sibelco is one of the world’s leading providers of industrial minerals and other materials, with 195 production sites spread across 34 countries. Spectrum® nepheline syenite is a key product within Sibelco’s extensive portfolio of materials for ceramics which includes clay, kaolin, cristobalite, dolomite, calcium carbonate, feldspar, silica, wollastonite, prepared bodies and flint pebbles. For further information please email: ceramics@sibelco.com or visit www.sibelco.com
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Italy sees a slowdown
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fter five years of growth culminating in the record results achieved in 2017, the total revenues generated by the manufacturers of machinery and equipment for ceramic and heavy clay suffered a 3.5% decline in 2018 to a total value of 2.158 billion euros. According to figures published by the research department of Acimac (the industry’s national trade association affiliated to Confindustria), this result was driven by a slight fall in domestic Italian sales (-1.3%) to 573.1 million euros and a bigger contraction in exports (-4.3%) to 1,585.1 million euros. There were slight falls in the number of companies, 143 compared to the 148 of 2017, and employees, which dropped by 5.1% to 6,905 following the strong growth of 2017. “We’ve seen a slowdown in many countries’ economies since the middle of last year, including widespread stagnation in construction, a sector we are closely allied to,” said Acimac’s Chairman Paolo Sassi. “Over the last five years, our customers had made significant investments in renovating their production plants so a falloff in revenue was only to be expected,” continued Sassi. The best performances were in the markets that had been least dynamic in the past. The Russian Federation, Ukraine and other Eastern European countries saw 77% growth with respect to 2017 to a value of 238.4 million euros, becoming the second largest market after the EU. Excellent results were achieved for the second year running in China and Taiwan, where the ceramic machinery manufacturers’ sales grew by 25% to 129.7 million euros. Sales performed strongly in Africa and particularly in Algeria where local customers invested 186 million euros in Italian technologies. Conversely, the biggest contractions occurred in North America (-23.7%), where the Tennessee manufacturing district reached the end of its positive growth cycle, and in the Middle East. As for client sectors, the tile sector continued to dominate in 2018, accounting for 86.5% of
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total revenue with a value of 1.867 billion euros despite a 3.1% yearon-year contraction. By contrast, sales to Italian tile manufacturers grew by 1.8% over the previous year. The sanitaryware sector likewise saw a contraction, dropping from 115.5 to 106.7 million euros (-7.6%), but climbed to second place in the rankings of sectors served by the machinery manufacturers. The brick and roof tile machinery sector was hit by the sharp contraction in exports (-29.2%) and dropped to third position, down from 125.1 to 90.5 million euros (-27.6%). In fourth place came sales to producers of refractory materials with revenue of 55.1 million euros, 37.3% up on last year’s 40.1 million euros. 2019 forecasts Several important markets continued to stagnate in the first few months of the year, so the outlook for 2019 is very cautious. “We expect the situation in some markets to remain critical, while in others we are beginning to see a slight recovery,” commented Sassi. “We are therefore expecting our revenues to remain stable at above 2 billion euros in line with the figures for the previous two years,” concluded Sassi.
Tiles under pressure
Confirming the preliminary endof-year results, the Italian ceramic tile industry also experienced a downturn in 2018 for the first time after five years of uninterrupted growth. The result was revealed by the national statistical survey presented by the Chairman of Confindustria Ceramica Giovanni Savorani at the annual members’ meeting held on 11 June. The 137 companies making up the Italian tile industry reported a 1.6% year-on-year decline in output to 415 million sq.m (a fall of 7 million sq.m), while total sales dropped by 2.8% to 410.1 million sq.m and total sales revenue fell by 3% to 5.4 billion euros. Exports suffered the most from the weakness of demand, falling by 3% in terms of volumes (from 338 to 327.7 million sq.m) and 3.3% in value (to 4.547 billion euros) due to the difficulty in raising average price (stable at 13.9 €/sq.m) despite a
higher value-added production mix. Domestic sales continued to stagnate, dropping 1.6% to 82.4 million sq.m (less than half of the pre-crisis figure) and generating revenues of 834 million euros (-1%) thanks to an average price of 10.1 €/sq.m. As Mr Savorani explained, the increasingly fierce rivalry from other ceramic producing countries (Spain, China and in some markets now also India), the growing competition from alternative materials (particularly LVT) and the uncertainty caused by protectionist trade policies and the tariffs war between USA and China are some of the main causes of the slowdown in Italian tile exports. In 2018 Italy succeeded in holding its ground in European markets, where it sold 222 million sq.m with a small fall in Western Europe and strong results in the Balkans. Sales declined in other geographical areas: -5.4% in North America (46 million sq.m), -4.3% in the Far East (20 million sq.m), -21% in the Gulf states (9 million sq.m), -10% in North Africa and other Middle Eastern countries (10 million sq.m) and -6.8% in South America (4 million sq.m). “The global scenario remains highly complex and it’s still too early to talk of a turnaround in 2019 despite the positive figure (+1.4%) for our exports in the first quarter of this year,” explained Savorani. “More than anything else we’re looking to consolidate our 2018 results.” In 2018, Italian-owned companies operating outside Italy had a total workforce of 3,151 people and produced 85.8 million sq.m of tiles, in line with the levels of 2017. The total sales volumes of 86.5 million sq.m generated a turnover of 858.91 million euros (-0.4%), 80% of which consisted of sales in the same country where the factory is located. European sales rose to 483.2 million euros (+2.8%), while sales in North America fell by around 4% to 375.7 million euros. The US producers (including many owned by Italian groups) are increasingly concerned about the unfair trade practices adopted by the Chinese ceramic industry, leading to the presentation on 10 April of a petition to the US Dept of Commerce calling for the introduction of antidumping duties.
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W
hen it comes to first-hand experience of working within the ceramics and related
industries, few possess the tenure of Charles Skidmore, Chairman and Managing Director of Minchem Limited. In a career spanning more than 40 years, Charles has held positions within the likes of Podmore & Sons Ltd and Rio Tinto
division of Palabora Europe Limited – a wholly owned subsidiary of Palabora Mining Co. Ltd. It was in the year 2000 that Charles, in tandem with Trevor Slater, Minchem Limited’s Commercial Director, completed a management buyout of said minerals and chemical division. Continuing the work of the division, Minchem Limited has
These products are used in fields such as ceramics, abrasives, animal feeds, coatings, electronics, healthcare, leather tanning, paper, pharmaceuticals and refractories, to name just a few, and today, Minchem Limited has agency/distributor agreements with a number of key principals. These include, Daiichi Kigenso Kagaku Kogyo (DKKK) Co, Ltd., Japan (producer of high
Zr Chemicals Part of the Minchem Group of companies, Minchem Limited is a global specialist in the production and supply of zirconium chemicals for ceramics, refractories, healthcare, electronics and many other related industries subsidiaries, Mandoval Ltd and Zirconia Sales UK Ltd. It was the latter businesses, which would go on to work with baddeleyite/zircon sand, and zirconium chemicals, as the minerals and chemicals
forged its reputation on offering a range of specialised inorganic and mineral based products – typically focused around zirconium materials – for diverse applications around the world.
purity zirconium oxides), Freeport Cobalt, Finland (cobalt salts/oxides), and Imerys Fused Minerals, China (zirconium oxides and chemicals). The Minchem Limited we find in 2019 forms part of the larger Minchem Group, which also comprises of Minchem HMP Ltd – which specialises in the manufacture of zirconium silicate and alumina-based products – and ACCS Ltd – which is responsible for creating lining systems for protecting infrastructure against aggressive chemical environments. “Through our work with the likes of DKKK, Freeport
www.minchem.co.uk
Minchem Limited and Imerys, Minchem Limited experienced rapid growth, and with that Trevor and myself decided that it would be good to have a manufacturing element to the business that we could control,” Charles details. The answer to this came in the form of Hines Milling & Processing Ltd, which was formally acquired by Minchem Limited in April 2006, and subsequently christened Minchem HMP Ltd. “A processing company with milling, blending, and classifying capabilities, Minchem HMP is a well-established manufacturer of a range of products based on zircon, zirconia, alumina and other related materials, for the production of cements, paints, coatings, patches, castables and ramming compositions,” Charles continues. The current line-up of the group was then completed in 2010, when it began the buyout process of anti-corrosion cement specialists, ACCS Ltd. By developing high quality corrosion, thermal and abrasion resistant materials, ACCS helps customers across the world that are involved in the processing and storage of acidic and alkaline materials. Since then, Charles and the rest of the team have recently decided to start up a European operation in Milan, Italy, called Minchem Europe srl, and will be the base for the group’s EU REACH registrations.
Turning to one of the most significant developments in Minchem Limited’s recent history, conversation shifts to the exclusive agreement that the company signed with Alkane Resources Ltd, an Australian gold production company with a multi-commodity exploration and development portfolio. At the heart of the company’s future operations is its world-class, construction-ready Dubbo Zirconia Project (DZP) – located 400 kilometres northwest of Sydney – which is set to become a significant producer of critical materials for advanced technologies, including strategic elements such as zirconium, rare earths (light and heavy), hafnium and niobium. It is for this project that Minchem Limited has signed an exclusive worldwide marketing, sales and distribution agreement for all zirconium materials produced, and is assisting in the marketing of the rare earths (light and heavy) and hafnium products.
“With plans to produce over 16,000 tonnes per annum of zirconium products (Zr units) from the DZP, Alkane Resources is positioned to become a major global supplier going forward, and in the process become the world’s largest producer of heavy rare earths outside of China,” Charles enthuses. “The project itself, which boasts reserves to support a mine life of over 70 years, will see Minchem Limited moving highly sought after products all over the world. What makes this all the more impressive is that the zirconium is derived from a non-Chinese source, not beneficiated from zirconium silicate (zircon), possesses a very low level of radioactivity, and sits within an easily accessible ore body in a politically stable country.”
Products: Zirconium, nickel, cobalt and specialised inorganic chemicals
www.minchem.co.uk
Analysis: Technical ceramics
Vision 20/2 Malaysian advanced ceramics
Jahir Ahmed looks at how Malaysia’s pledge to become a fully-fledged member of the advanced manufacturing community by the year 2020 looks set to be realized as its technical ceramics sector comes more to the fore…
I
n Southeast Asia, Malaysia is best known for manufacturing and exports of technical ceramics or industrial or advanced ceramics. Supported with heavy investments in several billions of US dollars for manufacturing hi-tech ceramics or products made out of hi-tech ceramics, including semiconductors, the technical ceramics’ advancement in the country have helped it develop ASEAN region’s power house for producing many types of industrial products like electronics, infotech and communication devices, various advanced engineering and insulating items and a diverse range of industrial and consumer goods since past several decades and this has continued to flourish giving Malaysia a new identity of hi-tech manufacturing country. Among the active technical ceramic manufacturers, many are foreign owned, mainly Japanese and West European, while the companies from the US have substantial investments in semiconductors. Germany’s technical ceramic specialist CeramTec’s subsidiary, CeramTec Malaysia (CeramTec Innovative Ceramic Engineering (M) Sdn Bhd), has provided a big versatility in manufacturing, being one of the leading technical ceramic manufacturers in Malaysia with products, including advanced ceramic components and parts, supplied to different automotive, electronic, energy, communication, industrial equipment, medical engineering, construction and various other industry sectors. However, it is most reputed in Malaysia for its role played in ceramic glove hand formers industry.
Hands on the wheel
Driving on the technological advancement, and specially, capitalizing on the booming local technical ceramic industry, Malaysia has made a spectacular success in utilizing the domestically produced agro-forestry product, natural rubber, to develop a homegrown industrial sector to command the economy of the world rubber gloves. Malaysia is the largest manufacturer of rubber gloves, the demand of which is rising steadily since the
26
asian ceramics
AC 19-6
past couple of decades as the Malaysian manufacturers produce quality gloves at competitive cost and export efficiently throughout the world, using the locally made ceramic glove hand formers that function as moulds in glove factories for making gloves of examination, surgical, industrial and household uses. In the last two decades, the domestic ceramic glove hand former manufacturing has boomed to a great extent making Malaysia a global leader and helping it become the world’s largest player in manufacturing and exports of rubber gloves with majority market share. Kuala Lumpur based Malaysian companyresearchers, Kenanga Investment Bank Berhad reported Malaysia now accounts for 68 percent of the world market share of rubber gloves manufacturing. Kenanga estimates this year’s total global demand for rubber gloves at some 270 billion pieces. Naturally, the globally reputed ceramic glove former major CeramTec has set up production plants in Malaysia to cater the glove manufacturers. However, compared to the turnover of the glove manufacturers, the return of the ceramic glove former manufacturers is too small. Only a few million glove hand formers are produced per month in Malaysia. Due to the ceramic former’s long replacement period of about 9-15 months on averages, depending on the intensity of the production run in the rubber glove plant, the glove manufacturers can use formers for a long time without replacement. Half a dozen of the Malaysian major former manufacturers’ production capacity is 100,000 to 300,000 hand formers per month. Other small and medium enterprise (SME) manufacturers’ production capacity ranges between 10,000 and less than 100,000 pieces a month. “Ceramic glove hand former market is comparatively stable this year along with improved sales performance,” said the Malaysian major former manufacturer and stock market listed company ES Ceramics Technology Berhad group’s CEO Wong Fook Lin. The group’s two porcelain hand former factories (in Malaysia and Thailand) together earned a total revenue of some 25.3 million
www.asianceramics.com
Analysis: Technical ceramics
20 Photocredit: MediCeram
Photocredit: MediCeram
Malaysian Ringgits in 2018 compared to RM33.3 million of the previous year, said Wong. Due to lack of production capacity control and resultant fierce competition hand former market faces fluctuation of prices. In such situation, the ES group with a total production capacity of about 300,000 pieces of formers a month has to suffer from loss of revenue. About a dozen major and SME ceramic glove hand former manufacturers are active in Malaysia to supply their ceramic formers to the industries manufacturing hand gloves made out of latex (natural rubber), nitrile (synthetic rubber) and plastic (vinyl or PVC). The demand for all types of gloves are increasing worldwide, boosting up the production of ceramic glove hand formers. Natural rubber hand gloves are commonly used, but nitrile synthetic rubber hand gloves have increasingly become popular for its better puncture resistance and medical grade quality. New investments in the production of nitrile rubber gloves have made great strides in the expansion of ceramic glove former industry in Malaysia as well as in other producing countries. Industry sources said the primary reason people would choose nitrile an alternative to latex is because of its anti-allergy quality. Many people suffer from latex allergies. However, when allergy is not a concern, latex does have a slight advantage with comfort and dexterity over nitrile gloves, which is latex free. Other alternative, loose fit and cheaper vinyl or PVC gloves (also latex free) are a popular choice for the food industry and situations where high levels of durability and protection are less of a priority; while they may be less durable, they are the less expensive option too.
Growing markets
To meet the growing market demand, many companies are increasingly active in manufacturing ceramic glove hand formers in Malaysia, the world’s leading hub for production and trade of ceramic glove hand formers and all types of hand gloves. Besides
www.asianceramics.com
Photocredit: Maruwa
ES Ceramics Technology Berhad Location: Kawasan Perindustrian Silibin, 30100 Ipoh, Perak, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets Others: stock market listed major manufacturer with another ceramic former plant in Thailand.
CeramTec Innovative Ceramic Engineering (M) Sdn Bhd Location: Senawang Industrial Park, Negeri Sembilan, 70400 Seremban, Malaysia Products: Technical ceramic products, including glove formers, other components Markets: Domestic and export markets Others: CeramTec is a globally operating leading German technical ceramic manufacturers.
MediCeram Sdn Bhd (MediCeram) Location: Kawasan Perindustrian Nilai, Nilai, Negeri Sembilan Darul Khusus, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets Others: Major manufacturer of ceramic formers with specialization on medical related formers used for manufacturing medical gloves and related products.
Shinko Ceramics (M) Sdn Bhd Location: Kawasan Perindustrian Beranang, 43700 Selangor, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets Others: It is a Malaysia based production and sales unit of Japan’s Yokkaichi (Mie) based Shinko Ceramics Co Ltd.
AC 19-6
asian ceramics
27
Analysis: Technical ceramics
ES Ceramics and CeramTec Malaysia, the other former manufacturers competing in the market are companies like specialty former manufacturer, MediCeram Sdn Bhd, to several other similar-capacity former manufacturers, including Japanese investment Shinko Ceramics (M) Sdn Bhd, for consolidating their shares in production and trade of dipping formers to cater the manufactures of latex, nitrile and vinyl/PVC gloves in the domestic markets and all over the world. With great expansion of glove manufacturing Malaysia is the home to many global gloves majors, including the world’s largest glove manufacturer, Top Glove Corporation Bhd, a Malaysia owned domestic operator with also production plants in Thailand and China. Such glove manufacturers who are meeting the global demand for the quality gloves need the world’s top class formers at competitive prices. In such expansion move, Malaysia continues to remain the top player in increasing the former production being the world’s largest source. This has been prompting the backyard suppliers to the industry to go for increased production supports. Chemical Company of Malaysia Bhd (CCM) is expanding its capacity for Kleeners, a cleaning solution for ceramic formers supplied to glove manufacturers. “Our new Kleeners facility at a new site in Bangi, Selangor, will provide an additional production capacity of 10,800 tonnes per year when it is completed by the second half of 2020,” said Nik Fazila Nik Mohamed Shihabuddin, CCM’s Group Managing Director. In 2018 Kleeners accounted for about RM15 million in sales or 17 percent of total sales from CCM’s polymer division, which is a one-stop centre in providing a wide range of polymer coating solutions for the rubber gloves industry to produce powder-free medical examination and surgical gloves. CCM’s capacity expansion plan includes its polymer production which is advancing well in line with the increasing global demand for gloves projected to grow between eight and 10 per cent per annum over the next two years, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA). With positive growth prospects of rubber gloves, CCM aims to increase and diversify its polymer production. All this depicts the outlook for the rubber hand gloves and the ceramic glove hand formers. The Malaysian rubber (latex and nitrile) glove manufacturing companies, Top Glove Corporation, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, and Supermax Corporation Bhd, are among the world’s leading glove manufacturers. These top four manufacturers account for an estimated 80 percent of the total production of rubber gloves in Malaysia. This big four’s total production capacity is expected to rise to an estimated 183 billion pieces of hand gloves by 2020 from an estimated 144 billion pieces of 2018, according to the company researchers, Kenanga Investment Bank. Kenanga reported that by 2020, the world demand for rubber gloves will rise by 10 percent to an estimated 297 billion pieces from the estimated 270 billion pieces of 2019. Top Glove Corporation, the world’s largest manufacturers of gloves with annual sales of about RM2.5 billion, is the premier buyer-user of Malaysian ceramic glove hand formers. Top Glove is well-positioned to cater to global glove demand, which is projected to grow by at least 10 percent annually and will continue expanding its operations. In progress is the expansion of several existing facilities, which will boost Top Glove group’s total number of production lines by an additional 224 lines and production capacity by 22.8 billion gloves per annum and exported to over 2,000 regular customers in 195 countries, said the company.
28
asian ceramics
AC 19-6
MANY COMPANIES ARE INCREASINGLY ACTIVE TO MEET DEMAND Vaytech Ceramic Formers Sdn Bhd Location: Sungai Bakau, 48000 Rawang, Selangor Darul Ehsan, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets
Gateway Industrial Corporation Sdn Bhd Location: Kawasan Perindustrian Chandan Raya, 31450 Menglembu, Perak, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets
Gotaj Ceramics Sdn Bhd Location: Kawasan Perindustrian Klang Utama, Klang, Selangor, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets
AM Ceramic (M) Sdn Bhd Location: Batu 8 ½, Off Jalan Kapar, 42200 Kapar, Selangor Darul Ehsan, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets
Hallmark Porcelain Sdn Bhd Location: Batu 5 ½, Jalan Meru, 41050 Klang, Selangor Darul Ehsan, Malaysia Products: Ceramic glove hand formers Markets: Domestic and export markets
Electrical and electronic ceramics manufacturers Capatronics Malaysia Sdn Bhd Location: Industrial Park, 653 Batu 5, Jalan Kelang Lama, 58200 Kuala Lumpur, Malaysia Products: Ceramic capacitors of various types Markets: Domestic and export markets
www.asianceramics.com
Guaranteed Energy Savings through efficient firing technologies for Sanitaryware • Tableware • Clinker • Porcelain Stoneware Pipes • Split & Roof Tiles • High Voltage Insulators • Technical Ceramics up to 1.800 °C • Hot
Sense of perfection. Raw materials for ceramics
KAOLIN – FELDSPAR – CHAMOTTE
BE! THE PL ACE TO Visit us on Booth no. B21
k 2019 Bangko
www.KeramischerOFENBAU.de
Phone +49 - 51 21 - 74 74 00 · Fax +49 - 51 21 - 74 74 74 Keramischer OFENBAU GmbH · Benzstraße 5 · 31135 Hildesheim · GERMANY
Amberger Kaolinwerke, Eduard Kick GmbH & Co. KG E-Mail: keramik@akw-kaolin.com, www.quarzwerke.com
Analysis: Technical ceramics
Elkom Sdn Bhd Location: Kawasan Perindustrian Sungai Purun, Semenyih, Selangor Darul Ehsan, Malaysia Products: Porcelain electrical insulators and bushings Markets: Domestic and export markets
Maruwa (Malaysia) Sdn Bhd Location: Batu Berendam FTZ, Phase 3, Industrial Estate, Melaka, 75350, Malaysia Products: Ceramic substrates, pressed ceramics and ceramic capacitors Markets: Domestic and export markets Others: Maruwa Malaysia is a Southeast Asia based production subsidiary of Japan’s Aichi based technical ceramic manufacturer Maruwa Co Ltd. Photocredit: Hallmark
By December 2020, Top Glove is projected to have a total of 872 production lines and a production capacity of 83.3 billion gloves per annum, from the current 648 production lines and a capacity of 60.5 billion pieces of gloves per annum, manufactured in 40 factories located in Malaysia and other countries, including Thailand and China, said Tan Sri Dr Lim Wee Chai, Executive Chairman and CEO of Top Glove Corporation Bhd, based in Shah Alam, Selangor Darul Ehsan, Malaysia. Such expansions indicate a continuing boost in production of ceramic glove hand formers in Malaysia.
Upgraded production
The ceramic glove hand former production process needs sophisticated machinery equipment from mould-making and body and glaze preparation to casting, scraping, finishing and spraying to setting, firing, grading and storage. Machinery, equipment and kilns for quality rawmaterial processing, casting and firing are imported into Malaysia mainly from the European suppliers. The manufacturers requires reliable machinery and equipment as the usage of the formers sets it apart from the conventional ceramic products. The formers are for continuous industrial use under heavy-duty conditions, to withstand the complex processes involving heat and chemicals to produce gloves. The formers need to have a high degree of resistance to industrial chemicals, exceptional mechanical strength, high thermal shock resistance and a very narrow range of dimensional fluctuations. A substantial amount of raw materials in use to produce the formers are also raw materials for advance ceramics. It differentiate the ceramic hand formers from other ceramic products. It is being applied under complex processes to produce the end products to make various types of gloves for use in medical, household, industrial, surgical, examination and other purposes. According to CeramTec, the dipping formers shaped like hands are made from technical porcelain. In the glove manufacturing process these ceramic hand moulds are dipped in a liquid latex, nitrile, vinyl or PVC mass. The material adheres evenly to the ceramic dipping former, dries and, following several other processing steps, the finished glove can be removed from the mould. Material properties like thermal shock resistance, resistance to corrosive media and a low expansion coefficient are just some of the advantages that the technical porcelain these dipping formers are made from has to offer.
Capacity expansions
Murata Electronics (Malaysia) Sdn Bhd Location: Bemban Industrial Park in Batu Gajah Perak, Malaysia Products: Ceramic components, capacitors, power indicators, filters, etc. Markets: Domestic and export markets Others: Murata Electronics is a Malaysia based subsidiary of Murata Manufacturing Co Ltd of Japan.
NGK Electronics Devices (M) Sdn Bhd/NGK Globetronics Technology Sdn Bhd Location: Phase 4, Bayan Lepas Free Industrial Zone, 11900 Penang, Malaysia Products: Porcelain insulators and press ceramics Markets: Domestic and export markets Others: NGK units in Malaysia are production subsidiaries of Japan’s NGK Co Ltd, famous for porcelain insulators and electronic ceramic products and components.
CeramTec Innovative Ceramic Engineering (M) Sdn Bhd Location: Senawang Industrial Park, Negeri Sembilan, 70400 Seremban, Malaysia Products: Technical ceramic products, including glove formers and advanced ceramics products Markets: Domestic and export markets Others: CeramTec is a globally operating leading German technical ceramic manufacturers. CeramTec Malaysia manufactures advanced ceramic components and parts used in automotive, electronic, energy, communication, industrial equipment, medical engineering and other industrial sectors.
Malaysia’s major semiconductor (including ceramic wafer) manufacturers Aemulus Holdings Bhd (Lintang Bayan Lepas 9, Bayan Lepas Industrial Park Phase 4, Bayan Lepas, Penang, Malaysia)
D&O Green Technologies Bhd
(Batu Berendam Free Trade Zone, Phase III, 75350 Melaka, Malaysia)
Elsoft Research Bhd
(Lintang Bayan Lepas 9, Bayan Lepas Industrial Park Phase 4, Bayan Lepas, Penang, Malaysia)
Fuji Electric Semiconductor (Malaysia) Sdn Bhd (Kulim Hi-Tech Park, Kulim, Kedah, Malaysia)
Globetronics Technology Bhd
(Bayan Lepas Free Industrial Zone Phase 4, 11900 Bayan Lepas, Penang, Malaysia)
ES Ceramics said ceramic glove hand former industry is
30
asian ceramics
AC 19-6
www.asianceramics.com
Promos srl
Analysis: Technical ceramics
expanding steadily in Malaysia despite a combination of domestic factors that made it tough in recent years for the manufacturing sector. This included gas price hikes, implementation of higher minimum wages, as well as volatile raw material prices, all of which resulted in higher operating costs. Heightened competition amongst glove former manufacturers affected selling prices and consequently impacted margins, yet, the double digit growth in demand for rubber hand gloves worldwide has intensified expansion of former production, said ES Ceramics, one of the leading manufacturers of ceramic glove hand formers in Malaysia. The ES group’s core and only business segment is the manufacture of ceramic glove hand formers or glove moulds. Its two similar sized manufacturing plants are located in Ipoh, Perak in northern Malaysia and in Sadoa City, Songkhla Province, in southern Thailand, near to Malaysian plant. In Thai factory, Euroceramic Technologies Co Ltd, the main products are glove formers for uses in examination, surgical operations, household work and industrial applications. The group’s plant in Malaysia, Easy Sun Sdn Bhd, focuses mainly on the manufacture of examination glove formers. Launched in 1998, ES aims at becoming the premium manufacturer of hand glove formers with one of the largest production capacity in the world. Its officials told Asian Ceramics it is working together with its customers to develop specialty products that can provide superior model for specific applications, and through its R&D it can earn flexible manufacturing capabilities to deliver the right product in the right quality and quantities to the right customers, with supports from its French technology partner, COQUET, who are masters in household and industrial formers, with more than 50 years of designing experience. Besides use in Thailand, ES imports its Thai factory’s production into Malaysia to re-export to other countries and to supply to the consuming glove industries domestically in Malaysia. ES group CEO Wong said this year’s outlook is bright and the company is committed to enhance product quality to grab the market share. He said ES will continue to invest in automation to achieve better operational and cost efficiency and increase profit.
IC Microsystems Sdn Bhd (ICmic) (Cyberjaya, Malaysia)
Inari Amertron Bhd (Phase 4 Bayan Lepas Free Industrial Zone, 11900 Bayan Lepas, Pulau Pinang, Malaysia)
Infineon Technologies (Kulim) Sdn Bhd (Kulim, Kedah, Malaysia)
Infineon Technologies (M) Sdn Bhd/ Infineon Technologies (Advanced Logic) Sdn Bhd (Batu Berendam Free Trade Zone, Melaka, Malaysia)
INTEL Microelectronics (M) Sdn Bhd (Penang, Malaysia)
KESM industries Bhd (Sungei Way Free Trade Industrial Zone, Petaling Jaya, Selangor Darul Ehsan, Malaysia)
Key Asic Bhd
(8 First Ave, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan, Malaysia)
Malaysian Pacific Industries Bhd
(Menara Hong Leong, Jalan Damanlela, Bukit Damansara, Kuala Lumpur, Malaysia)
MMS Ventures Bhd
(Lintang Bayan Lepas 9, Bayan Lepas Industrial Park, Phase 4, 11900 Penang, Malaysia)
QES Group Bhd
(HICOM Glenmarie Industrial Park, Seksyen U1, 40150, Shah Alam, Selangor, Malaysia)
SilTerra Malaysia Sdn Bhd
Previously Wafer Technology Malaysia Sdn Bhd(Kulim Hi-Tech Park, Kulim, Kedah, Malaysia)
Unisem (M) Bhd
(Kawasan Perindustrian Pulai Jaya, 31300 Ipoh, Perak Darul Ridzuan, Malaysia)
Visdynamics Holding s Bhd
(Kawasan Perindustrian Tasik Utama, Ayer Keroh, 75450 Melaka, Malaysia)
ViTrox Corporation Bhd
(Batu Kawan Industrial Park, 14110 Bandar Cassia, Penang, Malaysia) Photocredit: CeramTec
32
asian ceramics
AC 19-6
www.asianceramics.com
Analysis: Technical ceramics
German technical ceramic manufacturer for dipping formers manufacturer, CeramTec, with its made of technical ceramics for the Malaysian production unit located in production of gloves used for medical Seremban in the Malaysian state of procedures, as well as industrial Negeri Sembilan, is one of the world’s and domestic applications. Located leading producer-supplier of premium in Kawasan Perindustrian Nilai, in quality ceramic dipping formers, with Negeri Sembilan Darul Khusus, it is 1,800 different porcelain hand shape a specialty manufacturer for medical moulds for latex, nitrile and vinyl glove formers. It offers a wide range gloves. CeramTec Malaysia’s capacity of ceramic formers for the latex moves ahead parallel to the dipping industry to produce gloves, market demand. balloons, breathing bags, finger cots Shinko Ceramics, located in and other products. MediCeram Kawasan Perindustrian Beranang formers can be tailored to suit in Selangor has grown in strength individual requirements of customers Photocredit: NGK due to its commitment to excellence manufacturing examination, surgical, since its inception in 1988. Shinko Malaysia follows the standard household and industrial glove formers of surface types unglazed, of Shinko’s home plant in Japan, which is a quality former glazed, spray on, sand blast, and patterned. manufacturer. The superior quality of the ceramic gloves hand MediCeram claims their formers are of high thermal shock formers that it manufacturers has propelled it to the top spot in the resistance due to high mechanical strength, industry, said the company. Shinko currently holds a major share low thermal expansion coefficient, high thermal conductivity and in the world market. Its ceramic formers are supplied to numerous uniform by using fully automated casting line. Their products are countries all over the world, besides catering to the needs of also of high resistance to commonly used cleaning agents in gloves manufacturers in Malaysia. Its major export markets rubber glove industry as more crystal phases are formed in the include, USA, Canada, France, Germany, UK, Portugal, Japan, former’s body. The formers are designed to minimize air bubble Oman, India, China, Thailand, Vietnam, Brazil and many others. formation at the interface of ceramic body and latex finger. Shinko’s establishment of factory in Shanghai, China, also Several other companies like Vaytech Ceramic Formers Sdn helped in accelerating in acquiring many parts of the world Bhd, in Rawang, Gateway Industrial Corporation Sdn Bhd in market. In recent years, Shinko has been especially successful Perak, Gotaj Ceramics Sdn Bhd in Klang, Hallmark Porcelain in special dipping products such as drybox glove formers, sleeve Sdn Bhd in Klang, AM Ceramic (M) Sdn Bhd in Kapar, etc, formers, airbag formers and various balloon formers. Shinko is are manufacturing various types of ceramic hand formers, constantly growing with its 200,000 pieces a month production including glazed, unglazed, sand blasted, textured and spray capacity in its Malaysian plant. on examination, surgical, household and industrial gloves MediCeram Sdn Bhd (MediCeram} is best known as hand formers. Exports of ceramic glove hand formers and similar ceramic products (US ‘000) Main regular importers of ceramic glove hand formers and similar products from Malaysia, under HS code 691410, value in 000 US$
Exported value in 2014
World
1,697
China Thailand
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
2,096
1,435
12,799
20,929
253
0
295
10,743
17,390
503
884
645
1,538
2,261
Mexico
14
689
16
138
697
India
63
7
NA
6
185
Indonesia
54
NA
213
15
40
Singapore
44
7
18
14
9
Imports of ceramic glove hand formers and similar ceramic products (US ‘000) Main regular exporters of ceramic glove hand formers and similar products to Malaysia, under HS code 691410, value in 000 US$
Imported value in 2014
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
World
3,607
4,644
5,334
4,600
2,102
China
2,386
2,759
4,302
3,459
1,876
Italy
16
15
2
86
101
1,126
1,680
923
856
55
Thailand
NA
49
82
91
31
Taipei, Chinese
16
5
3
54
6
Indonesia
www.asianceramics.com
AC 19-6
asian ceramics
33
Analysis: Technical ceramics
Capacitors and insulators
NGK-ED said its new Malaysian factory enables the company for smoother contacting, and by direct delivery and reduced lead-time, with regional customers. NGK-ED's company-wide support formation will help expediting customers' solution, said the company. Japan’s Aichi based technical ceramic manufacturer MARUWA Co Ltd also produces pressed ceramic products and ceramic capacitors and other components in Malaysia since long. MARUWA’s Southeast Asian production subsidiary, Maruwa (Malaysia) Sdn Bhd, based in Melaka, established in 1989. MARUWA's ceramic products and high frequency components with excellent heat dissipation plays an important role in the arrival of the IoT era. MARUWA Malaysia manufactures pressed ceramic products, including microwave dielectric ceramics, ceramic valves, sliding parts, potentiometers, isolators, alumina substrates, and ferrite magnets for communication equipment, automotive, magnetic medical application and sensor, etc. Also, it produces electronic components, including sarantel antenna, ceramic capacitors and other electronic components, ceramic substrates, such as, alumina substrates, alumina zirconia, toughened alumina aluminium, zirconia toughened alumina substrates, glazed
Ceramic capacitors, insulators and wafers, as well as semiconductors, are high growth technical and advanced ceramic industries in Malaysia as these are tied to rapidly expanding export industries, such as, electronics, semiconductors, and high-tech engineering, equipment and communication sectors. Besides German subsidiary CeramTec Malaysia, several other foreign operators in the technical ceramic sector have strong presence in Malaysia. Among them, the Japanese subsidiary companies, NGK Electronics Devices (M) Sdn Bhd, MARUWA (Malaysia) Sdn Bhd and Murata Electronics (Malaysia) Sdn Bhd (MME) are most active in providing technical ceramic products to the export manufacturers. NGK-ED pressed ceramics are currently produced in Malaysia by the Japanese invested NGK subsidiary company NGK Electronics Devices (M) Sdn Bhd/NGK Globetronics Technology Sdn Bhd. In Penang, the high value-added products, such as image sensor packages with glass or epoxy jointed with ceramics are manufactured by NGK-ED. The company said the Malaysian production facility can be more flexible with cost down requests. It enables NGK-ED Malaysia for smoother contacting, and by direct delivery and reduced lead-time, with regional customers. NGK-ED's company-wide support formation will help expediting customers' solution in Malaysia. Total ceramic/porcelain insulator imports (US$’000) HS Code
Product label of imports of electrical insulators, value in 000 US$
Imported value in 2014
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
854690
Electrical insulators (excluding those of glass or ceramics and insulating fittings)
32,345
29,537
33,944
30,904
24,198
854620
Electrical insulators of ceramics (excluding insulating fittings)
29,301
17,243
10,329
12,316
16,181
854610
Electrical insulators of glass (excluding insulating fittings)
3,006
6,529
7,380
9,879
6,770
Imports of ceramic insulators by source country (US’000) Main regular exporters of ceramic electrical insulators to Malaysia, under HS code 854620, value in 000 US$
Imported value in 2014
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
World
29,301
17,243
10,329
12,316
16,181
China
5,219
2,917
3,584
6,441
6,638
Italy Japan United States of America Korea, Republic of
1,904
1,071
1,512
1,379
2,665
19,459
11,494
3,543
2,073
2,465
138
192
163
543
1,223
2
8
11
475
1,090
Germany
612
252
420
398
467
Thailand
635
199
273
323
417
Austria
50
123
38
57
217
Turkey
123
98
32
7
112
Singapore
13
28
71
157
103
United Kingdom
259
300
100
47
97
Sweden
183
76
10
10
88
52
8
89
26
18
431
290
39
128
14
India Hong Kong, China Taipei, Chinese
42
14
58
26
13
Indonesia
NA
115
179
51
11
34
asian ceramics
AC 19-6
www.asianceramics.com
Analysis: Technical ceramics
substrates, aluminium nitride substrates, ELKOM Sdn Bhd is conitnually silicon nitride, etc. widening its coverage as a supportive MARUWA is committed for quality, department to the transformer said Datuk Manimaran Anthony, CEO manufacturing arena. Accelerated of MARUWA Malaysia. Also, MARUWA by infusion of proven engineers and Malaysia operates production and sales technical experts in transformer and of chip inductors in India, where it has transformer accessories into ELKOM, set up a plant, MARUWA Electronic based in Kawasan Perindustrian (India) Pvt Ltd, located in Chennai, Sungai Purun, Semenyih, in Selangor Tamil Nadu, in 2005 and managed by Darul Ehsan. The company has the MARUWA Malaysia’s CEO Datuk expanded the product range to include Manimaran Anthony. porcelain bushings, off-circuit tapMME, located in Bemban Industrial changers, epoxy bushings and epoxy Park in Batu Gajah Perak, functions as monoblocks. Propelled by a dedication, production base and sales foothold ELKOM is home for high quality Photocredit: ELCOM of the Murata Group in Malaysia products in accordance to international and Southeast Asia, since established in 1993 and it was one of standard, having stamped its foot prints worldwide. ELKOM brand is Murata’s important production bases outside Japan to meet the now recognized worldwide. demands of the electronic components in South East Asia and rest Homegrown semiconductors of the world. Malaysia, already a preferred location for international companies MME manufactures and sells ceramic electrical and electronics engaged in semiconductor businesses, could be more attractive, components, specially, power inductor and electromagnetic especially, in the wafer fabrication (fab) industry, according to the interference (EMI) suppression filter, and provide support on EMI technology developers in the semiconductor sector. suppression filters, including ferrite beads, filters with integrated Raj Kumar, founder and group chief executive officer of capacitors, common mode choke coils, and block-type (high Singapore based IGSS Ventures, believes that Malaysia has the damping of large currents) filters. potential to play a bigger role in the semiconductor industry than Kuala Lumpur’s Jalan Kelang Lama based Capatronics Malaysia it does today. Malaysia has yet to have a strong home-grown Sdn Bhd also manufactures ceramic capacitors, including, ceramic semiconductor champion in the international arena like what TSMC disc capacitors, multilayer ceramic capacitors (radial leads mlcc), is to Taiwan or Samsung is to South Korea, said Raj, whose IGSS multilayer ceramic capacitors (axial leads mlcc), multilayer smd chip is focused on developing and commercialising semiconductor capacitors and other types. Total exports of ceramic insulators (US’000) HS Code
Product label of exports of electrical insulators, value in 000 US$
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
854690
Electrical insulators (excluding those of glass or ceramics and insulating fittings)
38,150
42,908
67,707
65,073
64,826
854620
Electrical insulators of ceramics (excluding insulating fittings)
22,539
13,215
4,807
2,752
6,133
854610
Electrical insulators of glass (excluding insulating fittings)
1,110
1,384
163
235
65
Exports of ceramic insulators by destination country (US’000) Main regular importers of ceramic electrical insulators from Malaysia, under HS code 854620, value in 000 US$ World
Exported value in 2014 22,539
Exported value in 2015
Exported value in 2016
13,215
4,807
Exported value in 2017
Exported value in 2018
2,752
6,133
Australia
NA
1
712
NA
2,513
Singapore
288
454
560
682
1,027
50
48
38
545
743
India Philippines Japan Thailand
NA
28
31
72
642
5,876
3,701
544
141
408
484
676
79
3
76
China
8,837
5,559
1,894
589
66
Taipei, Chinese
2,692
932
138
290
35
Germany
1,063
36
21
18
8
Hong Kong, China
2,982
1,496
752
333
3
asian ceramics
35
www.asianceramics.com
AC 19-6
Analysis: Technical ceramics
Bhd in 1999. It is located in Kulim Hi-Tech technologies. Last year, IGSS tied-up with local semiconductor wafer foundry SilTerra Park, Kulim, Kedah, 36 km from Penang, the semiconductor cluster of Malaysia. Malaysia Sdn Bhd in a technology transfer deal. The partnership will significantly reduce SilTerra’s designed monthly capacity of the fab recently expanded from 30,000 wafers to production costs, said Raj. 46,000 wafers. SilTerra is a 200 mm semiconductor wafer foundry, offering CMOS fabrication processes According to Raj, there are two main types of semiconductor companies in for integrated chips (IC) in advanced logic, mixed signal and radio frequency and high Malaysia, integrated device manufacturer voltage applications. SilTerra has progressed (IDM) and dedicated foundries. He added, Photocredit: Maruwa local semiconductor companies should into more advanced technology areas, such as, silicon photonics, bio-photonics, MEMS on CMOS, galium penetrate the niche areas of wafer fabs including wafer foundries, semiconductor outsourced semiconductor assembly and test nitride (GaN), BCD and discrete power, known as “More-than(OSAT) industries or design services for growth and expansion. Moore” technologies. Globally ranked 16th by IC Insights in the category of pure-play Raj said SilTerra is a world-class capable semiconductor facility and the partnership IGSS has with SilTerra is both strategic foundries, SilTerra’s leadership in the industry is the result of years and a trusted one, and with continued focus and intensity, it will of developing local skills as well as nurturing strategic partnerships. positively change the future of both companies within the next Wafer Technology Malaysia Sdn Bhd, formed in 1995 for three to five years. construction of the fab, later renamed SilTerra Malaysia Sdn Malaysian SLCC exports (US$’000) Main regular importers of Malaysian capacitors under HS code 853223, value in 000 US$ World
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
2,550
1,825
3,641
4,492
4,279
Thailand
400
588
1,219
3,322
3,386
Brazil
479
364
366
361
394
Singapore
58
61
719
307
139
Indonesia
646
456
630
336
110
United States of America
53
98
79
28
77
Germany
51
38
44
32
34
China
18
11
19
4
31
Taipei, Chinese
177
97
501
9
22
Japan
500
57
12
12
21
Netherlands
12
11
11
9
17
Hong Kong, China
98
28
15
65
1
Imported value in 2014
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
Malaysian SLCC imports (US$’000) Main regular exporters of capacitors to Malaysia under HS code 853223, value in 000 US$ World
18,079
14,360
11,059
15,328
23,604
3,261
2,965
2,600
2,299
5,096
575
348
1,047
814
4,383
2,272
1,967
2,865
4,770
4,024
49
25
12
8
2,320
Singapore
2,589
1,690
839
615
2,154
Japan
4,629
2,620
1,168
1,714
2,120
China
3,508
2,169
1,622
2,574
2,018
Hong Kong, China
273
122
110
291
563
Sri Lanka
127
313
188
525
387
Korea, Republic of
333
1,833
225
1,415
153
Taipei, Chinese United States of America Thailand Philippines
Mexico United Kingdom Indonesia Czech Republic India Germany
36
asian ceramics
AC 19-6
4
25
27
68
99
40
30
21
97
74
249
170
91
86
68
26
23
3
13
33
2
3
206
1
16
85
9
30
12
7
www.asianceramics.com
Analysis: Technical ceramics
Malaysian MLCC imports (US$’000) Main regular exporters of capacitors to Malaysia under HS code 853224, value in 000 US$
Imported value in 2014
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
World
160,275
202,419
298,551
334,486
445,592
Japan
114,722
145,179
233,464
200,836
214,828
Korea, Republic of
1,350
1,809
1,425
73,798
103,431
China
7,593
17,130
21,968
17,941
45,865
Singapore
8,092
10,918
11,603
12,954
20,560
12,273
9,819
10,710
10,166
18,656
Hong Kong, China
5,020
6,961
5,945
6,262
12,710
Taipei, Chinese
2,454
2,561
2,718
3,750
10,468
Philippines
4,327
2,779
1,307
1,600
7,049
118
470
5,703
3,430
5,229
2,348
2,320
1,461
1,513
3,542
55
9
5
20
762
113
621
353
708
590
90
330
521
443
384
349
351
407
371
327
Thailand
85
97
227
97
295
Germany
112
78
235
301
290
9
16
63
45
130
Portugal
24
4
14
16
37
Australia
68
18
23
11
27
7
46
16
20
26
120
40
33
12
22
7
11
1
11
19
24
22
108
11
18
United States of America
United Kingdom Mexico Netherlands Indonesia France Czech Republic
Italy
India El Salvador Brazil Canada
Malaysian MLCC exports (US$’000) Main regular importers of Malaysian capacitors under HS code 853224, value in 000 US$ World Hong Kong, China
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
339,459
362,203
410,401
452,020
505,449
54,071
109,953
124,655
132,131
117,142
100,695
89,209
93,157
96,376
109,907
China
63,236
54,111
86,091
94,641
95,382
Singapore
39,643
28,898
34,067
39,113
51,905
Korea, Republic of
12,526
17,444
14,460
22,716
31,096
Japan
36,045
27,921
23,135
21,226
27,107
United States of America
16,618
16,906
14,018
17,010
25,361
Germany
4,951
7,034
11,806
17,946
24,239
Thailand
8,083
9,154
6,755
8,085
13,402
Viet Nam
674
344
478
271
2,263
Philippines
Taipei, Chinese
986
800
749
788
2,262
Mexico
48
36
618
138
1,176
India
16
6
101
577
1,079
United Kingdom
60
162
84
171
616
Hungary
18
1
16
99
191
987
151
2
18
95
5
3
21
6
36
Czech Republic Australia
www.asianceramics.com
AC 19-6
asian ceramics
37
Analysis: Tableware
tableware trade pressures mount AC looks at how rising import tariffs are making the tableware industry an increasingly volatile sector and wonders how much more effect the current state of tit-for-tat trade spats will have on the trading environment…
R
aising import tariffs unilaterally by the US President Donald Trump to reduce trade imbalance in his country’s favour defying normal bilateral trade relations with the partner countries and the imposing anti-dumping duties and trade pressures elsewhere, including European Union (EU), have escalated intolerance in foreign trade, in addition to economic and political sanctions imposed by the powerful nations earlier. Among the countries most affected by the pressures, China is the most targeted victim and often charged with dumping and restricting domestic market. When it comes to export of ceramic tablewares, the competing countries in their domestic markets find the Chinese products most aggressive in offering lower prices. Very often China is faced with anti-dumping measures and unfair shipments from the Chinese exporters. The growing trade pressures have considerably reduced the stability of the international trade, involving major trading nations in trade wars. However, some countries, such as, South and Southeast Asian tableware exporters, are enjoying benefits out of this situation and exploiting export opportunities, while the globally leading Chinese ceramic tableware trade is being dragged to struggle in commanding its usual market shares. The massive Chinese tablewares are faced with threat of getting squeezed in the US markets. Its lucrative exports to the EU already suffer from punishing anti-dumping duties.
EU woes
Chinese ceramic tablewares’ largest buyer EU initiates antidumping measures frequently against the tablewares imported from China because of lower prices beyond the regulations
38
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AC 19-6
of the European Commission (EC). China is traditionally the largest supplier of tablewares to the EU. It is also the world’s most economic source for all types of ceramic products, including European style tablewares. In 2018, China exported some US$1.39 billion worth of ceramic tablewares to EU. In the EU countries, the market share of Chinese tablewares and kitchenwars is reportedly estimated to be over 50 percent. From China, the ordinary EU buyers get almost everything they choose. Being the world’s largest manufacturer-exporter of ceramic tablewares and kitchenwares, China accounts for about two thirds of the global production and trade. The anti-dumping actions taken worldwide against China is tied mostly to its lower production cost, supported with domestically available rawmaterials and highly skilled labour force. Since the ceramic industry is labour-intensive and China is a low labourcost and high-productivity country, its ceramic products are naturally beating the domestic products in competition in the high labour-cost countries and in the regions where it is in better advantageous position in grabbing market share because of hugely cheaper Chinese rawmaterial base and very high level of its export manufacturing, according to the researchers at the Chinese Academy of International Trade and Economic Cooperation (CAITEC), under the Ministry of Commerce. Besides the EU’s anti-dumping duties, renewed in July this year for another five years, the American tariff increase has been causing a serious concern to China as it may lose a part the market to other tableware exporting countries. Also, the US tariff increase poses a threat to the EU, the world’s second largest manufacturer and exporter of ceramic tablewares and China’s main rival in the US market.
www.asianceramics.com
Analysis: Tableware
All Photo credits in this feature courtesy of Hosen28
British Ceramic Confederation (BCC), based in Stoke, has reportedly alerted that the tableware manufacturers could be hit hard if Trump’s tariff increases spirals into a trade war. BCC is concerned that the fallout could damage the UK tableware
www.asianceramics.com
industry that exported about GBP34 million worth of its products to the US markets in 2018. UK’s annual imports of tablewares from USA is of worth less than GBP4 million. Trump’s protectionism and barriers to trade with EU will
AC 19-6
asian ceramics
39
Analysis: Tableware
ultimately inflict damages, as the EU responded with counter tariffs, suggested BCC chief Laura Cohen with a note that UK exports one of the world’s highest quality ceramic tablewares to USA. Compared to US exports of ceramic tablewares of worth about US$11 million to EU in 2018, it imported US$186million worth of tablewares from the EU countries last year being the premier buyer, according to the Geneva based International Trade Centre (ITC). Tablewares were included in the list of 3,805 products of Trump administration’s fresh tariffs on an additional US$300 billion in Chinese goods. China is almost like an exclusive source of American tableware imports. The US imported US$1.22 billion worth of ceramic tablewares from China in 2018. Trump’s tariff increase did not yet help the US economy, rather the American consumers are effected most and the Chinese counter tariff resulted in shifting of sourcing vital imports, specially, the food and agricultural products to America’s competitor countries. According to Japanese newspaper Nikkei, Chinese exports to the US of goods that were slapped with tariffs dropped 14 percent by a total of US$18 billion, trade data shows. This was equivalent to 3 percent of China's total annual shipments to the US. America suffered a heavier blow, with tariff-hit exports to China falling 38 percent, or by US$23 billion. This drop was equivalent to about 15 percent of all annual exports to China. The duties of up to 25 percent now cover nearly half of American imports from China and 70 percent of China's imports from the US. The American exports to China started shrinking soon after Beijing imposed tariffs on the US goods in retaliation for Trump's move in July last year to slap punitive duties on a broad range of Chinese imports. By the end of the year, American exports to China were nearly US$4 billion less than they were 12 months earlier.
TRUMP’S PROTECTIONISM AND BARRIERS TO TRADE WITH EU WILL ULTIMATELY INFLICT DAMAGES
EU investigation
China’s one of the leading porcelain and bone china tableware manufacturers-exporters, Guangdong Hosen Two Eight Industrial Co Ltd, based in Chaozhou City of Guangdong province, apprehend that the EU markets will continue to block the Chinese tablewares to protect the manufacturers in the EU countries. A news content in its website noted that the European Commission plans to impose a tariff of 17.6 percent to 58.8 percent on Chinese ceramic tableware and kitchenware manufacturers. Huo Jianguo, a former chief of the CAITEC was quoted in the news as saying that ceramic products are China's most competitive export strengths. The ceramics are levied on the grounds of protecting domestic industries and maintaining employment. Temporary tariffs are deliberate acts of suppression that weaken China’s export competitiveness. There is a certain degree of excessive competition in China's ceramic industry, and it is necessary to coordinate the export order. In the context of the general economic downturn in European countries, China’s exports have put a lot of pressure on EU companies. In response to the EU's trade protection measures and to ease the situation in EU and China both, it needs to consider how to optimize the scale and structure of exports, said Jin Bosong, another fellow Chinese researcher on international trade cooperation under the Ministry of Commerce. Frequent anti-dumping investigations have had a huge impact on China's ceramic products exports. Industry sources in China
40
asian ceramics
AC 19-6
unofficially estimate, since the EU introduced anti-dumping duty this decade, the export volume of Foshan ceramic products, which accounted for most of national export volume, fell down substantially. Guangdong Hosen Two Eight Industrial Co, like many other large manufacturers of ceramic tablewares, believes that continuous improvement of their production efficiency and development of quality to compete in the export markets will help beat the protected products worldwide. With 4 kilns burning lots of porcelain and bone china dinnerwares, the output of high-quality catering ceramics produced by Hosen Two Eight can reach 80 million pieces a year. Its large output, high quality, complete varieties and unique craftsmanship are its traits, not the lower prices, said the company. Last year, India has imposed anti-dumping duty on import of ceramic tablewares and kitchenwares from China in a bid to protect domestic producers. Ceramic tableware and kitchenware shipped into India from China attracted an anti-dumping duty of US$1.04 per kg, making the imports expensive. All India Pottery Manufacturers Association (AIPMA) approached the Directorate General of Anti-Dumping and Allied Duties (DGAD) for imposition of the levy on the items. AIPMA had alleged that the goods were being dumped into India and consequently causing injury to the domestic
www.asianceramics.com
Analysis: Tableware 50 Chinese ceramic companies being investigated for Current TARIC promoting unfair competition under European Union duty Additional anti-dumping rules on exports of ceramic tablewares rate in Code and kitchenwares. %
industry. After a probe, the DGAD recommended imposition of definitive anti-dumping duty on the imports. Based on the recommendations, the revenue department in the finance ministry has slapped the duty. Earlier, a provisional anti-dumping duty was imposed in June 2017 for six months. The final duty has been imposed for five years starting June 2017.
GSP withdrawal
The US trade pressures affected exports of ceramic tablewares from India to USA as Washington’s withdrawal of the Generalised System of Preferences (GSP) facilities, provided to India, came into effect from June this year. The GSP allowed preferential duty-free imports of about 2,000 products of worth up to US$5.6 billion into the US from India. The total GSP duty concession benefits were worth only some US$190 million, according to the Indian commerce ministry, but that was beneficial to the exporters of tablewares who used the benefit to remain competitive with other larger export manufacturing countries. In the past several decades this GSP, meant for some developing economies, had allowed India to avoid tariffs on certain exports to the US in the interest of promoting tighter trade ties and development. Trump’s move will reportedly add tariffs of as much as 7 percent on Indian exports of tablewares to the US, which in 2018 accounted for more than 11 percent or more than US$6 billion of India’s total exports of goods. Out of India’s over US$51 million a year export shipments of ceramic tablewares, some US$4 million worth of the products were shipped to the USA in 2018. Such exports to USA under GSP had substantially favoured the exports of India’s ceramic tableware manufacturers whose operations are highly labour intensive, for both categories of dinnerwares and kitchenwares under HS Code 6911 and 6912. Indian shipment of the ceramic tableware products to the USA faces bad impacts from 2019 by GSP withdrawal as the President Trump is unhappy with India following its inability to accept the pressure of importing more goods from USA to balance the bilateral trade payments which is now in India’s favour. The US imported more than US$56.504 billion worth of goods from India, its ninth largest import source, in 2018, while the US exported over US$33.120 billion worth of products to India, its 13th largest export destination in 2018, according to the ITC.
42
asian ceramics
AC 19-6
1. CHL Porcelain Industries Ltd
23.4
B351
2. Guangxi Province Beiliu City Laotian Ceramics Co., Ltd
22.9
B353
3. Beiliu Changlong Ceramics Co., Ltd
17.9
B359
4. Beiliu Chengda Ceramic Co., Ltd
17.9
B360
5. Beiliu Jiasheng Porcelain Co., Ltd
17.9
B362
6. Chaozhou Chengxi Jijie Art & Craft Painted Porcelain Fty.
17.9
B383
7. Guangdong Jinqiangyi Ceramics Co., Ltd
17.9
B437
8. Chaozhou Lianjun Ceramics Co., Ltd
17.9
B446
9. Chaozhou New Power Co., Ltd
17.9
B454
10. Chaozhou Xinde Ceramics Craft Factory
17.9
B484
11. Chaozhou Yaran Ceramics Craft Making Co., Ltd
17.9
B492
12. Dehua Kaiyuan Porcelain Industry Co., Ltd
17.9
B508
13. Dongguan Kennex Ceramic Ltd
17.9
B511
14. Evershine Fine China Co., Ltd
17.9
B514
15. Far East (Boluo) Ceramics Factory Co., Ltd
17.9
B517
16. Fengfeng Mining District Yuhang Ceramic Co. Ltd (‘Yuhang’)
17.9
B519
17. Fujian Dehua Rongxin Ceramic Co., Ltd
17.9
B543
18. Fujian Dehua Xingye Ceramic Co., Ltd
17.9
B548
19. Fujian Dehua Yonghuang Ceramic Co., Ltd
17.9
B549
20. Fujian Jackson Arts and Crafts Co., Ltd
17.9
B554
21. Profit Cultural & Creative Group Corporation
17.9
B556
22. Fujian Quanzhou Shunmei Group Co., Ltd
17.9
B560
23. Guangxi Beiliu Guixin Porcelain Co., Ltd
17.9
B579 B583
24. Guangxi Beiliu Rili Porcelain Co.,Ltd
17.9
25. Hebei Dersun Ceramic Co., Ltd
17.9
B592
26. Hunan Fungdeli Ceramics Co., Ltd
17.9
B599
27. Hunan Huawei China Industry Co., Ltd
17.9
B602
28. Hunan Wing Star Ceramic Co., Ltd
17.9
B610
29. Joyye Arts & Crafts Co., Ltd
17.9
B619
30. Liling GuanQian Ceramic Manufacture Co., Ltd
17.9
B627
31. Liling Liuxingtan Ceramics Co., Ltd
17.9
B635 B639
32. Liling Rongxiang Ceramic Co., Ltd
17.9
33. Liling Santang Ceramics Manufacturing Co., Ltd
17.9
B641
34. Liling Top Collection Industrial Co., Ltd
17.9
B645
35. Meizhou Gaoyu Ceramics Co., Ltd
17.9
B656
36. Ronghui Ceramic Co., Ltd Liling Hunan China
17.9
B678
37. Shandong Zhaoding Porcelain Co., Ltd
17.9
B682
38. Shenzhen Donglin Industry Co., Ltd
17.9
B687
39. Shenzhen Fuxingjiayun Ceramics Co., Ltd
17.9
B692
40. Shenzhen Good-Always Imp. & Exp. Co. Ltd
17.9
B693
41. Tangshan Daxin Ceramics Co., Ltd
17.9
B712
42. Tangshan Redrose Porcelain Products Co., Ltd
17.9
B724
43. Xuchang Jianxing Porcelain Products Co., Ltd
17.9
B742
44. Yuzhou Huixiang Ceramics Co., Ltd
17.9
B751
45. Yuzhou Ruilong Ceramics Co., Ltd
17.9
B752
46. Zibo Boshan Shantou Ceramic Factory
17.9
B756
47. Zibo Fuxin Porcelain Co., Ltd
17.9
B759 B762
48. Zibo Jinxin Light Industrial Products Co., Ltd
17.9
49. Liling Taiyu Porcelain Industries Co., Ltd
17.9
B956
50. Liling Xinyi Ceramics Industry Ltd
17.9
B957
Source: Official Journal of the European Union, 22.3.2019.
www.asianceramics.com
Analysis: Tableware
The US is the largest export market of India, while it is the second largest supplier to India, after China. India is now providing export incentives to the affected exporters, who lost GSP, to stay competitive in the US markets. The US trade pressure is high on Bangladesh too. Bangladeshi tableware exporters are bearing high tariffs for their exports as Washington withdrew the GSP facility that it provided to some of Bangladesh’s export items, including ceramics that benefited tablewares significantly. However, Bangladesh was able to survive in the US markets because of its high quality porcelain and bone china tablewares. The US GSP from Bangladesh was suspended in June 2013 as a result of concerns over workers’ rights and safety shortly after the Rana Plaza building collapse earlier in April that killed over 1,100 people, who were mostly female garment workers, while garments were not under GSP. Since the Rana Plaza tragedy, Bangladesh has become largely compliant in building, fire and workplace safety, but the US remains silent over GSP issue. In spite of that, almost every year more than US$5 million or roughly some 10 percent of Bangladesh’s annual ceramic tableware export revenues are fetched from USA.
Mounting pressures
The European Federation of Ceramic Table- and Chinese tableware exports (US$’000) Code
Product label
Exported Exported Exported Exported Exported value in 2014 value in 2015 value in 2016 value in 2017 value in 2018
691110
Tableware and kitchenware, of porcelain or china (excluding ornamental articles, pots, jars, . . .
4,349,509
6,362,874
4,885,451
5,217,423
5,645,568
691190
Household and toilet articles, of porcelain or china (excluding tableware and kitchenware, . . .
261,406
286,593
137,521
213,928
198,972
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
Chinese tableware exports (US$’000) Code
Product label
69120010
Ceramic tableware
69120090
Ceramic kitchenware and other household or toilet articles nes
69120000
Geramic tableware, kitchenware, other household articles and toilet articles, other than of . . .
241,271
303,049
246,603
257,210
291,172
88,067
115,597
129,043
162,138
201,524
0
0
0
0
27
China tableware exports to EU (US$’000) HS Product code
Product label
China's exports to European Union (EU 28)
European Union (EU 28)'s imports from world
China's exports to world
Value in 2016
Value in 2016
Value in 2016
Value in 2017
Value in 2018
Value in 2017
Value in 2018
Value in 2017
Value in 2018
6911
Tableware, kitchenware, other household articles and toilet articles, of porcelain or china . . .
966,291
1,080,502
1,217,572
1,389,743
1,448,254
1,490,112
5,022,973
5,431,350
5,844,579
6912
Tableware, kitchenware, other household articles and toilet articles, of ceramics other than . . .
70,456
94,721
121,294
964,210
1,072,451
1,216,143
360,128
419,348
492,723
44
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Analysis: Tableware
Ornamentalware (FEPF) continues to keep the European Commission under mounting pressure to restrict the ceramic tableware imports from China on alleged dumping and recurrence of injurious distortive involvements. In a release to the Press last year FEPF said it has shown to the Commission that unfair injurious dumping practices from China still prevail and will significantly increase if anti-dumping duties are not renewed for another period of five years. FEPF is happy as its pressure for extending 5-year anti-dumping duties on imports of tablewares and kitchenwares from China has worked for another five years. China's aggressive acquisition of EU market share will cause further and irreparable damage to the ceramic tableware and kitchenware industry in the EU countries, alleged the FEPF. It said it is essential for the EU to establish a level-playing field in full respect of international trade laws and to send a strong signal to European manufacturers and exporters alike that they will be able to compete fairly on the global markets. FEPF represents more than 30 percent of the total EU production of ceramic tablewares and kitchenwares and more than â‚Ź1.3 billion in revenue and directly employs around 25,000 employees across the EU, which in turn generates three times as many indirect jobs, according to FEPF. The membership of FEPF is representative of the large majority of EU ceramic tableware production notably present in Austria, Bulgaria, the Czech Republic, France, Germany, Italy, Hungary, Poland, Portugal, Romania, Spain and the UK. Companies from all of the largest producing countries have closely co-operated with FEPF in order to compile the extensive data required to contribute to the request for expiry review, claimed the FEPF. Prior to the anti-dumping measures adopted in 2013, the FEPF said, the EU ceramic tableware and kitchenware industry suffered from unfair trading practices due to dumped imports from China, which nearly tripled its market share in just three years. Such an unfairly obtained market share caused a loss of over 30,000 European jobs in EU industry and across the wider supply chain, in both upstream and downstream industries, added the FEPF. Although the industry remains fragile due to increasing production cost, anti-
46
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dumping duties imposed in 2013 have improved the market conditions to preserve European jobs and attract new investment into the EU. The provisional and definitive anti-dumping measures imposed in 2012 and 2013, respectively, led to a small decrease of Chinese market share from 65 percent in 2012 to 60 percent in 2017. FEPF said, this testifies to the moderate level of measures, which allowed Chinese imports to maintain their presence in the EU countries. As a result of the definitive anti-dumping measures imposed in 2013, the sales price of Chinese imports into the EU markets marginally increased, which allowed the EU industry to compete on a more levelplaying field. Meanwhile, in the UK front, the government has reportedly been drawing up plans for international trade considering the possibility of a no-deal Brexit. The Secretary of State for International Trade Liam Fox indicated he wanted to move to zero tariffs for as many areas as possible including ceramic tablewares. The government said some tariffs would remain to protect certain industries, including ceramics, to prevent the floods of cheap imports distorting the market. Accordingly, ceramics would have a 1.2 percent tariff imposed on non-EU imports, reduced from 4.8 percent, with a significant drop. However, such tariffs have not been welcomed by the ceramic industry’s representative trade organisation, British Ceramics Confederation. BCC refuses to recognise the proposed 1.2 percent tariff for ceramics claiming the calculations used across products do not make any sense, and does not apply to all ceramics.
50 breakers www.asianceramics.com
Analysis: Tableware
China’s ceramic tableware exports to USA (US$’000) HS Product code
Product label
China's exports to United States of America
United States of America's imports from world
China's exports to world
Value in 2016
Value in 2016
Value in 2016
Value in 2017
Value in 2018
Value in 2017
Value in 2018
Value in 2017
Value in 2018
6911
Tableware, kitchenware, other household articles and toilet articles, of porcelain or china . . .
759,951
866,023
1,056,418
436,727
441,714
438,688
5,022,973
5,431,350
5,844,579
6912
Tableware, kitchenware, other household articles and toilet articles, of ceramics other than . . .
149,958
176,766
219,497
970,207
980,701
1,112,118
360,128
419,348
492,723
The EC (European Commission) initiated an investigation of 50 Chinese ceramic companies for promoting unfair competition under EU anti-dumping rules on exports of ceramic tablewares and kitchenwares. On March 21, 2019, the EC said the “Commission Implementing Regulation (EU) 2019/464 of 21 March 2019 initiating an investigation concerning possible circumvention of anti-dumping measures imposed by Council Implementing Regulation (EU) No 412/2013 on imports of ceramic tableware and kitchenware originating in the People's Republic of China, and making such imports subject to registration.” The EC while implementing the regulation, by publishing in the Official Journal of the European Union the same day, said it has decided on its own initiative, pursuant to Articles 13(3) and 14(5) of Regulation (EU) 2016/1036 (‘the basic Regulation’), to investigate the possible circumvention of the anti-dumping measures imposed on imports of ceramic tableware and kitchenware originating in China and to make such imports subject to registration. The EC said the following companies currently subject to the residual duty rate of 36.1 percent (TARIC additional code B999) or companies subject to an individual duty rate are selling their products via other companies which are subject to a lower duty. These channelling practices resulted in a change in the pattern of trade regarding exports
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from China following the imposition of measures on the product concerned, without sufficient due cause or justification other than the imposition of the duty. The EC said the evidence points to the fact that the remedial effects of the existing anti-dumping measures on the product concerned are being undermined both in terms of quantities and prices. The volumes of imports of the product under investigation have increased significantly. There is sufficient evidence that imports of the product under investigation are made at prices below the non-injurious price established in the investigation that led to the existing measures. Implementing the regulation it further added, “the Commission has sufficient evidence at its disposal that the prices of product under investigation are dumped in relation to the normal value previously established for the product concerned.”
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Analysis: Tableware
Main importers of Chinese tableware (US$’000) Importers of tablewares from China under HS Code 6911
World
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
4,610,915
6,649,467
5,022,973
5,431,350
5,844,579
726,110
1,306,766
759,951
866,023
1,056,418
68,683
507,535
468,556
452,325
319,916
United Kingdom
206,075
310,974
212,701
234,908
239,888
Germany
193,224
252,862
177,433
184,740
193,405
Malaysia
181,214
225,968
121,198
141,304
178,462
Singapore
186,348
259,808
188,051
161,951
169,230
Netherlands
128,002
158,799
98,661
111,054
160,798
Saudi Arabia
98,594
175,135
120,171
132,323
142,596
Turkey
162,362
171,740
111,778
124,987
134,560
United Arab Emirates
167,742
165,348
108,010
132,119
129,425
Canada
105,688
114,566
78,525
88,214
128,638
Japan
106,735
111,808
111,875
105,544
115,393
Russian Federation
184,644
95,548
57,592
94,325
114,232
Kazakhstan
34,366
83,536
106,025
98,723
107,145
Italy
86,555
102,382
78,358
94,886
100,689
France
83,863
93,158
76,118
85,853
98,661
Australia
88,351
114,707
98,741
85,892
98,231
Chile
49,623
81,854
72,330
81,572
88,370
Korea, Republic of
78,633
87,302
83,488
80,982
83,507
Iraq
36,267
85,061
104,846
99,959
82,931
Spain
72,570
111,255
69,401
71,837
81,018
South Africa
55,200
67,726
48,074
65,663
75,675
185,725
119,979
106,236
141,763
75,129
India
55,241
77,092
81,062
76,076
73,214
Poland
36,470
53,766
43,756
53,985
70,023
Philippines
45,601
75,778
71,605
71,671
69,539
Belgium
63,285
83,636
58,905
69,848
68,534
Peru
30,887
49,946
40,427
47,069
61,407
Israel
32,801
60,890
48,438
55,649
55,733
Morocco
39,572
32,609
40,945
42,179
51,092
Pakistan
51,166
90,494
96,632
78,478
47,777
Mexico
38,777
44,183
33,101
36,272
46,493
Thailand
26,714
39,385
34,127
42,749
44,247
Taipei, Chinese
37,606
48,917
48,982
47,714
44,121
Egypt
22,386
31,257
18,733
30,034
44,113
United States of America Viet Nam
Iran, Islamic Republic of
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49
Analysis: Tableware
Main importers of Chinese tableware (US$’000) HS 6912 Importers of tablewares from China under HS Code 6912
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
World
329,625
416,521
360,128
419,348
492,723
United States of America
116,134
154,521
149,958
176,766
219,497
21,380
24,776
22,079
24,326
25,253
Japan Germany
5,207
10,638
9,949
16,570
23,584
United Kingdom
9,216
11,529
11,944
19,703
23,204
Netherlands
9,773
13,369
14,080
13,473
20,315
Canada
7,574
9,815
9,557
11,224
11,974
Australia
6,912
7,172
8,801
8,431
10,194
Imported value in 2014
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
World
3,917,008
3,800,219
3,733,843
3,867,526
4,593,746
European Union (EU 28) Aggregation
1,472,204
1,333,439
1,389,743
1,448,254
1,490,112
Germany
278,733
249,399
243,696
248,724
238,352
Italy
135,290
118,275
154,079
180,042
209,290
United Kingdom
194,338
196,804
169,654
165,108
161,462
France
EU tableware imports from China (US$’000); HS6911 Importers (EU countries’ imports under HS Code 6911
137,698
127,007
128,278
130,473
135,748
Netherlands
89,984
70,054
89,739
89,580
99,475
Spain
81,146
78,439
83,524
88,507
87,847
Austria
87,428
76,272
78,906
79,487
82,530
Belgium
75,665
69,794
60,634
63,103
63,126
Sweden
53,211
51,710
60,677
70,972
62,363
Poland
41,414
41,388
49,032
52,043
58,287
Denmark
59,249
54,389
56,484
52,816
54,214
Czech Republic
43,722
32,908
33,409
34,706
38,687
Greece
23,649
19,854
26,794
25,979
29,207
Portugal
19,999
17,063
17,397
21,258
23,345
Luxembourg
20,984
20,644
24,026
22,228
22,848
Ireland
29,420
23,140
18,791
20,525
20,069
Finland
20,668
16,135
18,083
18,403
15,786
Slovakia
14,899
12,665
12,389
14,342
15,486
Croatia
12,738
10,317
12,536
12,985
14,044
Romania
7,634
6,580
7,620
10,737
11,020
Lithuania
9,538
10,348
10,452
12,060
10,826
Slovenia
6,108
6,041
7,694
7,583
8,619
Hungary
7,197
6,998
7,606
7,440
7,320
Bulgaria
4,151
4,153
4,130
6,124
6,944
Estonia
6,169
4,271
4,593
4,161
4,750
Cyprus
3,055
2,519
2,774
2,840
3,585
Latvia
5,805
4,634
4,937
4,316
3,558
Malta
2,312
1,638
1,809
1,712
1,324
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www.asianceramics.com
Analysis: Tableware
EU renews 5-year duty
The European Union (EU) has adopted implementing a definitive antidumping duty for another period of five years on imports of ceramic tablewares and kitchenwares from China following a thorough expiry review, said Cerame-Unie (European Ceramic Industry Association), the Brussels based umbrella organisation representing the European ceramic industry. Cerame-Unie said in a release to the Press on July 16 last that the expiry review investigation of the European Commission (EC), the executive branch of EU, “established a clear risk of continuation and risk of recurrence of injurious dumping and found persisting and significant distortions in the Chinese market in this sector.” As alleged, “due to the continuation of dumping and strong likelihood of recurrence of injury to the EU ceramic tableware and kitchenware industry,” the Brussels based European Federation of Ceramic Table- and Ornamentalware (FEPF), a member association of Cerame-Unie, applied in mid-February, 2018, to the EC for an expiry review of the definitive anti-dumping duty on imports of ceramic tablewares and kitchenwares from China. Accordingly, the Commission opened an expiry review investigation on May 15, 2018. Cerame-Unie stated, “FEPF understands that the conclusions of the Commission on this expiry review were discussed at the Anti-Dumping Committee of 12 June 2019 and that a large majority of EU member states supported the renewal of the anti-dumping duties for a period of five years.” “These fair findings, obtained following a year of thorough investigation by the Commission, fully support and confirm the prima facie evidence and allegations presented by the Union industry in its request for an expiry review, which were confirmed by the Commission and thus duties are now maintained,” Cerame-Unie noted. “The investigation notably confirms the continuation of ongoing dumping and the presence of a growing and huge unutilised Chinese production capacity representing a multi-fold of total EU consumption. In addition, most key export markets for China have introduced antidumping measures on imports from China or are in the process of doing so. Such measures in third countries would result in a redirection
www.asianceramics.com
to the EU market of dumped goods from China, thus exemplifying the significance of today’s decision to renew duties for an additional period of five years.” “The investigation demonstrated that the market share of Chinese imports remained relatively stable at over 56 percent during the investigation period. The market share of the Union industry has been maintained at around 30 percent and the employment of over 26,000 workers has been safeguarded thanks to the level-playing field afforded by the anti-dumping duties implemented in the last five years. Today’s decision to renew the duties will ensure the continued competitiveness of Union industry against illicit and unfair trade practices from abroad,” it stated. In its release, the Cerame-Unie further added, “the EU production, capacity, and employment, although increasing, are still not at the level achieved before the start of the original investigation in 2012. In the period of 2004-2011 alone, China tripled its market share from 22 percent to 67 percent, whilst the Union industry lost more than 33,000 skilled jobs, affecting more than half of the EU jobs in this sector and a plethora of indirect jobs across the value chain. In addition, profitability remained well below the 6 percent target profit that was considered acceptable in the original investigation.” Commenting on the EC action, the FEPF said it salutes the renewal of duties for another period of five years. “In the context of ongoing unfair trade practices, including persistent dumping and unprecedented circumvention of EU anti-dumping measures, today’s decision is a very good signal for the Union industry, which is exposed to a continued threat of injurious dumping from China,” stated the FEPF President Roberto Sala. According to Cerame-Unie, the EU ceramic industry covers a wide range of products including, abrasives, bricks and roof tiles, clay pipes, wall and floor tiles, refractories, sanitaryware, table and ornamentalwares, technical ceramics, expanded clay and flower pots, etc, and generates over 200,000 direct jobs and a production value of €31 billion in the EU. Comment from China on the EU renewal of the 5-year anti-dumping duty on imports of Chinese ceramic tablewares and kitchenwares could not be available immediately.
AC 19-6
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51
Analysis: Tableware
Leading Asian imports of Chinese tableware (US$’000); HS 6911 Importers (Asian countries). Imported value in 2014 Imported under HS Code 6911
Imported value in 2015
Imported value in 2016
Imported value in 2017
Imported value in 2018
World
3,917,008
3,800,219
3,733,843
3,867,526
4,593,746
Asia Aggregation
1,180,378
1,200,368
1,159,967
1,183,148
1,633,805
Viet Nam
10,527
16,189
21,007
21,732
322,023
Saudi Arabia
92,717
102,011
85,872
84,775
154,018
United Arab Emirates
101,748
83,418
71,816
92,841
151,992
Japan
175,804
157,435
147,711
137,925
127,007
Korea, Republic of
102,068
97,278
112,464
116,516
114,397
Turkey
201,072
200,728
130,895
121,785
93,416
204
89,426
109,602
105,169
85,322
1,587
1,592
14,660
26,115
76,728
China
38,081
44,193
47,603
48,564
57,895
Taipei, Chinese
57,977
44,349
50,372
39,556
41,227
Hong Kong, China
35,229
34,673
34,062
32,802
33,889
Singapore
34,855
31,442
22,621
29,050
24,863
Malaysia
37,408
18,494
22,194
18,320
22,989
Kuwait
21,042
21,662
22,137
25,549
22,091
Israel
24,331
22,305
21,220
21,609
21,147
India
17,555
17,806
16,695
19,193
20,065
Philippines
19,225
22,327
25,617
27,197
20,044
Qatar
25,868
27,012
15,170
15,421
19,200
Pakistan
17,499
21,772
22,409
25,590
18,295
Indonesia
3,509
2,329
3,639
8,071
18,024
Lebanon
19,285
15,842
16,603
15,377
17,541
Sri Lanka
1,378
1,961
1,691
1,869
17,522
Syrian Arab Republic
5,187
5,833
5,717
7,511
17,174
Thailand
14,080
14,563
15,770
12,937
13,165
Myanmar
19,851
21,110
28,284
32,663
12,581
Kazakhstan
7,431
6,572
6,546
9,295
12,293
Jordan
9,578
11,301
11,820
10,904
11,486
Oman
7,104
5,898
9,085
5,825
11,038
Azerbaijan
3,606
3,191
7,781
5,846
10,658
Iraq Iran, Islamic Republic of
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www.asianceramics.com
Analysis: Tableware
Asian exports of tableware (US$’000); HS6911 Exporters (Asian countries). Exported under HS Code 6911
Exported value in 2014
Exported value in 2015
Exported value in 2016
Exported value in 2017
Exported value in 2018
World
6,794,251
8,570,181
6,948,005
7,390,966
7,734,198
Asia Aggregation
5,234,216
7,258,999
5,632,879
6,040,931
6,370,833
China
4,610,915
6,649,467
5,022,973
5,431,350
5,844,579
64,800
66,981
67,686
79,214
80,739
Thailand
93,440
91,493
83,340
84,502
79,553
Indonesia
108,946
91,331
92,485
81,681
74,654
47,440
52,458
60,619
61,827
68,251
Turkey
Japan Bangladesh
NAÂ
33,326
45,975
54,922
54,943
50,378
27,552
31,053
23,155
39,144
140,593
120,777
115,057
107,928
35,563
Sri Lanka
27,623
23,061
21,755
21,419
22,119
Singapore
9,215
11,721
7,367
14,299
17,872
India
14,322
15,593
14,342
15,463
17,066
Hong Kong, China
13,460
15,015
10,748
7,985
10,405
Korea, Republic of
16,475
13,981
13,423
15,767
9,577
Taipei, Chinese
4,814
4,814
6,780
6,933
5,831
Viet Nam
6,097
6,454
7,265
6,430
5,121
Pakistan
1,099
977
1,094
1,048
1,263
Lebanon
2,515
906
644
268
1,252
12,491
9,369
10,454
12,386
697
259
557
675
746
544
Saudi Arabia
1,096
5,024
11,551
5,564
262
Philippines
2,471
581
723
484
250
Kazakhstan
252
260
258
293
238
Israel
254
232
239
465
211
Uzbekistan
95
33
75
116
202
Georgia
10
8
54
8
134
1,323
7,533
91
68
94
22
70
76
104
86
Malaysia United Arab Emirates
Iran, Islamic Republic of Jordan
Qatar Syrian Arab Republic
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53
Analysis: Heavy Clay
Clearing th pollution control in South Asian bricks Yogender Malik looks at how the sub-continents’ brick manufacturing industry is continually becoming aware of the need to invest in cleaner production technology but questions whether the political will is truly there to make it really happen…
H
uge population and rapid urbanisation in recent years has made South Asia as one of the largest brick producing regions in the Asian countries. Collectively four nations in the region- India, Bangladesh, Pakistan and Nepal account for about 352 billion bricks from more than 190,000 brick kilns. From a global perspective, these four countries account for 17 % of the global bricks output. Following China, India is the second largest manufacturer of bricks globally. No wonder, this very building material holds so much of importance in the Indian architecture. India alone produces over 11 percent of the bricks which are globally produced and has about 1, 40,000 brick-making enterprises, who account for about 240 billion bricks per year. Brick production industry in these four countries are characterized by traditional firing technologies; heavy reliance on manual labour and low mechanization rate; dominance of small-scale brick kilns; dominance of single raw material and production of solid clay brick.
Production technology
To a large extent, brick production in all the South Asian countries is seasonal, confined to five to six dry months of the year. Due to seasonal nature of operation and employment, brick making has not classified as an industry in all of these countries. In brick sector, labor productivity is low, capitalization non-existent, mostly operation on equity capital and informal management. Most of the brick manufactures face extreme difficulty with working capital and that push them to count on informal banking channels such as family, friend and money lenders to finance their activities. The Fixed Chimney Kiln (FCK) accounts for more than 80 percent of brick kilns in South Asia. The low capital investment in setting up a brick kiln using this technology is the prime reason behind the FCK’s dominance in the brick sector in the region. However, FCK is one of the most contaminating techniques for brick production, resulting in a host of social and environmental impacts including air pollution, climate change, cardio-respiratory diseases, land use impacts and deforestation.
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Pollution measures
Due to the nature of production, energy insensitivity, fuel source and usage of outdated technology, brick production is among one of the highest polluting industries in the South Asia region. No wonders, the region is home to some of the most polluted cities in the world. Though, it would be unjustified to put the entire blame of this pollution on brick production industry, but it accounts for a significant part of it. In South Asia region, the brick firing process involves the burning of coal, wood and other biomass, and is responsible for 75% of sulphur dioxide emissions in the vicinity of brick kilns. For example, as a result of the numerous brick kilns in the Nepal’s Kathmandu area, air quality in the valley is at least 5 times worse than the World Health Organisation guideline. Brick kilns are recognized as one of the largest stationary sources of black carbon, and along with iron and steel production contributes about 20 % of total world-wide black carbon emissions. Black carbon (a major component of soot) is produced due to the incomplete combustion of fossil fuel and biomass. It has a warming impact on climate 460 to 1500 times stronger than CO2. Popularity and practice of producing solid clay bricks is also one of the major factors behind pollution in South Asian brick industry. A reduction of up to 40% in the material use is possible by going for perforated/hollow bricks instead of solid bricks. Perforated/hollow products require less energy for firing and produce less pollution per unit. In addition to air pollution, brick production also leads to other pollutants such as soil pollution. In South Asia, good agriculture soil is preferred as the raw material for making bricks. For example in India alone, the brick industry consumes around 400 million tons of good quality soil every year. Government in all the four countries have come up with a number of regulations and incentives to modernize the brick production sector in last ten years, but, efforts in the past to clean up the brick production in these countries have struggled to clear the test of affordability.
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Analysis: Heavy Clay
he air… BRICK PRODUCTION ALSO LEADS TO OTHER POLLUTANTS SUCH AS SOIL CONTAMINANTS India
Second largest global producer of bricks after China, Indian brick production industry has seen steady growth in numbers over the past decade. Currently, the country has more than 140,000 brick kilns which produces nearly 240 billion bricks per year. More than 98 % of the country’s total brick production takes place in the unorganized sector, which uses outdated technology with a heavy reliance on manual labour. The brick industry is the third largest user of coal in India after thermal power plants and the iron and steel industry. It consumes around 35 million tonnes of coal per year or 175g of coal per unit of brick. According to a report by United States Environmental Protection Agency, the industrial sector accounts for approximately 15 per cent of all black carbon emissions in India, with approximately two-thirds of those emissions attributable to brick kilns. Use of outdated technology and coal as the dominant fuel source creates high level of environmental pollution. These brick kilns emit toxic fumes containing suspended particulate matters rich in carbon particles and high concentration of carbon monoxides and oxides of sulphur (SOx) that are harmful to eye, lungs and throat. According to Anand Damle, Managing Director of technology supplier to Indian brick making industry, De Boer Damle India, “The local impact of pollution caused by small isolated brick kilns located in rural areas is not significant. Large brick kiln clusters, located in the vicinity of large brick demand centers (towns and cities), are major sources of pollution. Over the years, rapid urbanization has resulted in expansion of these clusters. Air pollution in these clusters affects the kiln workers, nearby residents as well as crops in the vicinity.” In May 2017, the Environment Pollution (Prevention and Control)
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Authority for the National Capital Region, a Central governmentconstituted committee, ordered that all kilns in the Delhi-National Capital Region (NCR) must shift to the zigzag technology before the next season in 2018 (kilns shut down during the monsoon and usually start operation during the winters). However, even after passing the deadlines, about 70 per cent of Delhi-NCR’s 3,823 kilns have yet not made the transition, according to a survey conducted by Centre for Science and Environment (CSE). CSE is one of India's leading environmental research and advocacy groups. Asian Ceramics spoke to a number of brick kiln owners in NCT Delhi region about the regulations and tried to know the reason behind slow conversion rate to zigzag technology. Ramesh Mittal, a member of All India Brick and Tile Manufacturers Federation ( AIBTMF) who owns a kiln in Faridabad, Haryana, says, “I am struggling to find labourers to carry out the conversion. Even the ones available are not trained to do the task.” “Besides labour, the conversion to zigzag technology requires an investment of INR 4-6 million, depending on the size of kiln. This is very high, and the time given for the conversion is inadequate,” Manish Gupta, an office bearer at AIBTMF told. A number of stakeholders have moved to courts and tribunals to allow them more time to convert their kilns from the existing FCBTK to zig zag. In most of the cases ( Bihar, Haryana, Uttar Pradesh and Rajasthan), courts have declined to give them further relaxations. However, some of the states have relaxed the norms for kiln conversion. For example, in a guideline issued in the month of March, state government of Punjab (one of the Northern states in India) allowed brick producers to continue using fixed chimney bull trench kiln (FCBTK) for another six months. The order allows brick
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55
Analysis: Heavy Clay A comparison of different types of brick production technologies Different Brick kilns technology Coal kilns with FCBTK consumption/ technology 100,000 bricks to operate till Fixed Chimney Kiln ( FCK) 20.22 September 30, 2019. Zig zag kilns 16-18 However, Improved zig zag 14 operators of such kilns have to pay Hybrid Hoffman kiln 12-14 a fine depending Tunnel kiln 18-22 upon the capacity of kiln under the “polluter pay principle”. Brick kilns with FCBTK technology have to pay a fine of INR 25,000 per month if capacity of kiln is equal to or more than 30,000 bricks per day. The fine is INR 20,000 per month if capacity of kiln is less than 30,000 bricks per day. Zigzag design for brick kilns has been used in India since the 1970s and is a well-tested technology. In West Bengal, for instance, 2,5003,000 brick kiln owners have been using it for years without waiting for any government order. Bihar too has been trying to make its kilns shift to zigzag technology since 2016. As per the last order passed by the state government on August 30, 2018, all kilns must shift to the cleaner technology by August 31, 2019. “Of about 6,500 brick kilns in the state, 450-500 have converted to zigzag technology so far. But despite the cost and labour issues, most kiln owners are keen to shift to zigzag. According to a recent survey conducted around Patna, about 65 per cent of those who has made the transition found that the zigzag technology was more fuel efficient and produced better bricks. Chandra Bhushan, Deputy Director General of Centre for Science and Environment (CSE), “The recent trend of the brick production sector is encouraging as the entrepreneurs are ready to learn and shift. A decade back, brick entrepreneurs had mindset blockage and didn’t want to learn and change anything. Now in 2015, the situation is reverse as they are ready to learn and accept changes. In the coming years if they want to grow they will either have to change or stop operation.”
Pakistan
Much like India, Pakistani brick production sector is composed of small scale brick kilns. The country has about 42,000 small and mid-scale brick kilns. Many of these are located around urban areas and contribute significantly to air pollution. Pakistan's brick sector is highly unregulated and uncoordinated but is responsible for 1.5% of Pakistan's gross domestic product ( GDP). Pollution due to brick plants has become a big problem in many parts of Pakistan. In October 2018 Pakistan's government was forced to order a closure of all traditional brick kilns closed for 70 days, to promote cleaner kilns that could cut pollution up to 70%. Under the government order, all traditional kilns were shut from October 20 until December 31 to cut smog that has blighted parts of Punjab province, and other areas of the country, in recent years. In order to curb the pollution in brick making sector, Pakistan joined the Climate and Clean Air Coalition (CCAC) in 2016 and became a focus country for a project on brick production. The Coalition, with a secretariat hosted by UN Environmental Programme in Paris, is a voluntary partnership of governments, businesses, scientific institutions and civil society organisations with over 120 state and non-state partners and hundreds of local actors. Though, Pakistani government has directed the brick kiln owners to convert to modern production technologies instead of the prevalent Fixed Chimney Kilns, but the progress on the ground has been far from satisfactory. Till December 2018, only a handful ( less than a dozen) brick kilns have been converted to zig-zag production
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Particulate Matter mg/ cm3
Co2 emission ton/100,000 bricks
Annual production (million)
technology. According to the Pakistan >1000 47-52 3.5-4 Brick Kiln Owners Association 600-900 38-43 3.6 ( PBKOA) 65 33 5.4 President, Shoaib Khan Niazi, “ 20.3 28-33 24 Currently about 16 50 24-48 25 kilns are in the process of being retrofitted for zig-zag technology. It is going to be a slow process because the government is not helping the brick kiln owners in any manner to acquire improved technology. Technical support and loans are a far cry: those who want to switch technology have to run from pillar to post to get electricity connections, even after paying bribes. Zigzag kilns require reliable electricity supply to operate, which is also a major problem in many parts of the country.” The Environment Protection Department and Punjab and National Energy Efficient Conservation Authority are working in close coordination with All Bricks Owners Association of Pakistan to introduce environmentally friendly and cost-effective brick kiln technology. Pakistani authorities are also working with the Climate and Clean Air Coalition (CCAC) and International Centre for Integrated Mountain Development (ICIMOD) to train brick entrepreneurs and raise awareness of new increasingly cost effective and scalable kiln technologies and improvements in the brick production process. The Climate and Clean Air Coalition is a voluntary partnership of governments, intergovernmental organizations, businesses, scientific institutions and civil society organizations committed to improving air quality and protecting the climate through actions to reduce shortlived climate pollutants.
Bangladesh
Bangladesh is third largest brick producing nation in South Asian region. Thousands of chimneys punctuate the horizon in cities and towns across Bangladesh — including some 1,000 in the suburbs of the nation’s capital, Dhaka — and they contribute to what is considered some of the worst air pollution in the world. According to the Bangladesh Brick Manufacturing Owners Association, 7,707 brick kilns produce around 28- 31 billion bricks every year in the country. Geographically 366 of these brick kilns are located in Barisal division, 1,529 in Chattogram, 256 in Sylhet, 2,295 in Dhaka, 873 in Khulna and 1,176 in Rajshahi division of the country. Brick kiln operations alone generate nearly 60 percent of the particulate pollution in Dhaka, according to Bangladesh’s Department of Environment ( DOE). Many of these kiln operations — including some 530 sites producing more than 2 billion bricks annually in northern Dhaka — are fixed-chimney kilns, which use inefficient technology with little to no pollution controls. In order to curb the pollution, Bangladesh government passed a resolution (Brick Production and Brick Kiln Building (Control) Act of 2013) in country’s parliament in 2013 to restrict new brick kiln construction in residential, agricultural, and environmentally sensitive areas and convert the standard kiln models to zig-zag kilns. The law made it mandatory that each brick kiln will produce at least 50 % hollow bricks. During last few years, usage of improved technology has made in-roads in Bangladesh’s brick making sector. According to the data from Bangladesh’s Department of Environment, from 2008 to 2017, the number of FCKs has declined from staggering 4500 to 2773. On
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FULL MANAGEMENT OVER ALL FINISHING PROCESSES OF CERAMIC SLABS.
IDEAS TECHNOLOGY RESOURCES HISTORY THE ESSENCE OF LEADERSHIP
www.bmr.it
Analysis: Heavy Clay Table 1 India
1.28
Pakistan
0.197
Bangladesh
0.165
Nepal
contrary, the number of Zigzag Kilns rose to 4274 in 2017 from a mere 150 in 2009. This rapid change has taken place due to the banning of FCKs through government notification, many brick owners have converted FCKs to Zigzag kilns. However, despite the regulations, nearly 18 per cent of brick kilns use forest wood defying the existing law, causing adverse impacts on the environment and agriculture, according to a recent study conducted by Soil Resource Development Institute (SRDI) under the Ministry of Agriculture. The study was conducted on a total of 118 brick kilns in of districts across the country. The study also revealed that chimneys of the surveyed brick kilns were not constructed as per government specifications. Under the existing specifications, minimum required height of chimneys of brick kilns must be 120 feet. In December 2018, Bangladeshi government has amended nearly 40 provisions of the 2013 act. It has done away with the provision of production of 50 % hollow bricks. “Bangladesh government must recognize brickmaking as a formal industry, and promote financial policies to support kiln conversions. We are not against protecting the environment, but if this act is implemented it won't be possible to have brick kilns anywhere in the country and millions of people working in this industry will become jobless,” according to Abu Bakr, secretary general of the Bangladesh Brick Manufacturing Owners Association.
0.03
Population (billion)
Number of brick plants India
140000
Pakistan
42000
Bangladesh
7700
Nepal
1700
Number of brick plants
Nepal
Among the four South Asian countries, Nepal has been able to control pollution in the brick production sector to some extent. Most of new brick kiln constructions in Kathmandu valley after the earthquake have adopted to zig zag technology. The industry was devastated by a 7.8-magnitude earthquake that hit in 2015, killing around 9,000 people and flattening about a third of the country’s brick kilns. “The environmental factor does not necessarily motivate most kiln owners, but the zig-zag method has an economic benefit. We are using less coal and getting better bricks faster,” according to Mahendra Chitrakar, president of the Federation of Nepal Brick Industries. In 2018, Nepal government introduced new standards on chimney height and emission for the brick industry in a bid to limit air pollutants emitted by these units. The new standards, upgraded from the previous one endorsed in 2008, have set emission standards and chimney height for seven types of kilns. The new standards, promulgated by the Ministry of Population and Environment (MoPE), have fixed the maximum amount of Suspended Particulate Matter (SPM). According to the new standards, the maximum SPM coming from bull’s trench kilns/forced draught with the fixed chimney has been fixed at 350 milligrams per cubic metre (mg/Nm3) while the minimum stack height from the ground has been retained at 17 metres. For bull’s trench kiln/natural draught with fixed chimney, the maximum SPM has been set at 500 mg/Nm3 and stack height at existing 30 metres. Earlier, the SPM levels for these two brick kilns were set at 600 mg/Nm3 and 700 mg/Nm3 respectively. Climate and Clean Air Coalition (CCAC) also helped in building nine kilns following the 2015 earthquake. These kilns have adopted new brick stacking and firing techniques. Emissions from these kilns showed a 60% decrease in particulate matter and coal consumption was reduced by 40%. Only 70gm of coal is now needed to bake one brick compared to 90-100 gm previously. Due to increased fire efficiency, the number of bricks produced has also doubled and the number of ‘A’ grade bricks has increased by 90%. Workers also experience less exposure to dust and pollution.
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1
Bricks produced (billion) India Pakistan Bangladesh Nepal
240 67 31 352
Bricks produced (billion)
1
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EXHIBITION REPORT EXHIBITION REPORT EXHIBITION REPORT EXHIBITION REPORT
Over 200,000 Global Traders Choose CeramBath, Foshan
CeramBath, known as the authoritative and influential largescale ceramic and bathroom expo in China, will usher its 34th session on October 18-21, 2019. According to the statistics of the visitor flow, each session of CeramBath has attracted Over 200,000 international visitors from 172 countries and regions to come and make order, and to create great business opportunities and value. Ranking Asia’s No.1 ceramic & bathroom show, CeramBath, Foshan has grandly held for 17 years with 33 sessions. Hereon, we gather numerous Chinese and international top ceramic brands to exhibit. Moreover, we arrange series of B2B business matching meeting with buyers and local manufacturers to help trade easily. Suppliers will bring with their hottest products in internal discount to all the global buyers in the meeting.
smoothly and directly. CeramBath, Foshan, acting as the weather vane of Chinese ceramics industry, bears the weight of promoting the development of economic and industry in Foshan, even China and has become one of the most important trading windows between China and the world.
Brief Introduction of CERAMBATH
The 34th Foshan International Ceramic & Bathroom Fair CeramBath Date: 18th - 21st October, 2019 (4 Days) Location: Foshan, China Scale: 470,000 sqm, 800 exhibitors, 200,000 visitors 3 Venues: China Ceramics City, China Ceramics Industry Headquarters, Foshan International Conference & Exhibition Center Exhibit: ceramic tiles, bathroom products, mosaic, stone, ceramic machinery, raw materials and other ceramic-related products.
Join Us & Achieve Great Business Future! See You on October 18-21, 2019!
scan to know more
Our vision from beginning to end is to provide preferential price with good-quality products and make export trade
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Email: fair@eccc.com.cn Web: en.cerambath.org Facebook: FoshanCeramBath Tel: 86-757-82525961/757-82525965
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Talking Shop
Talking Shop
Not just tiles….lifestyles Dinesh Vyas, senior vice president & head of marketing for H&R Johnson India, talks to AC about the current status of the country’s tile sector and the company’s plans for the future…
Established in 1958, H & R Johnson (India) is one of the largest ceramic tile producers in India. HRJ along with it's Joint Ventures and subsidiaries has a capacity of over 65 million square meters per annum spread across 13 manufacturing plants (owned and JVs) across the country which is one of the largest in India. With its positioning as "Not just tiles, Lifestyles', HRJ has a respectable business in sanitary ware and bath fittings as well as Engineered Marble and Quartz product-lines with 3 dedicated plants. For over six decades, HRJ has added various product categories and innovative, smart tiles to offer unique solutions to Indian customers. With over 20 sizes, 9 different levels of tile thickness and 15 surface finishes to suit the functional and aesthetic requirement, H&R Johnson offers tiles under four sub-brands i.e. Johnson Tiles, Johnson Porselano, Johnson Marbonite and Johnson Endura. AC: Indian Tile industry has experienced one of the slowest growths (domestic consumption) in the last two years. What have been the reasons behind it? DV: The cycle of ups and downs is not uncommon to any Industry. Indian Tile Industry like any other Country’s building material Industry, is dependent on real-estate development which was sluggish. Tile demand comes from two sources – new construction whether IHB sector or organized developers and – renovation. Both, put together, kept the major players’ kilns in operation and their focus was more on value-added product-mix to support top-line and margins. AC: How is the ceramic tile demand in India is evolving? DV: Future is quite promising. And you can see the reasons behind this. Thrust on housing is continued. While the cost of owning real estate has gone up, relatively small cost-component of tile encourages consumers to choose value-added quality products and spend a little more. Rural demand is also good and expected to be better. Indian Industry is quite capable to contain the cost of production and avoid any big dumping from across the border. We are focusing on smart tiles with special features like Germ-Free wall and floor tiles, ready-to-use staircase tiles and working upon some more very unique ceramic tile products for special usage environment which seems to be a promising niche in time to come. Yes, logistics and inventory manage. Demand from real estate developer and IHB segment has also shown positive indications.
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AC: Which segment/s of the tile industry is/are growing more than the industry average. How do you see these segments shaping up in next two/three years? DV: The fastest-growing segment is – Glazed Porcelain Tiles, popular in India as – GVT (Glazed Vitrified Tile) as the category is highly versatile and developed in multiple formats and can be moulded for different usage environment for wall as well as floor application areas. Polished vitrified tiles in large sizes are also equally lucrative and new capacities have come up for this segment too. One could see GVT emerging as a big segment and love for ‘vitrified' in India makes it one of the most growing and biggest segment in the next few years. Small size, ceramic tiles, on the other hand, are having a good primary demand from the semi-urban and rural segment where cost is an important factor. GVT, however, seems to be the winner across the categories. Our value additions like Germ-Free and Stain-Free USPs are also around this segment. AC: Which segment/s of the tile industry is dominated by your company? DV: Johnson is at a unique position. Making tiles in India for over 6 decades, we cover the entire spectrum of tiles. The floor is our major volume. In floor too, we are focusing on specially crafted product like Endura, which caters to the Industrial and heavy-duty floor segment. Two decades back when Indian players were not very sure of Polished Vitrified Tile acceptance, we installed huge capacities to make "Marbonite" which has become a generic brand in the category and encouraged every player to follow us. Similarly, our brand ‘Porselano' has Glazed Vitrified Tiles, which has major usage in flooring. Adding some new features in the generic category is our approach and flooring tiles for challenging usage environment would continue to be our focus. AC: What are the three largest challenges facing the Indian ceramic tile industry. Are these challenges same for organized and unorganized sector tile producers? DV: Well, what used to be a clear differentiation between organized and unorganized sector, the line is quite thinner now as most of the unorganized players are in some way do the job-work for organized players and some of them have done good marketing too. Margins are definitely in pressure, and the biggest challenge is to make quality product and remain accountable for the discerning customers, being a brand. Another challenge is the logistics infrastructure. And the third is shortening the life cycle of new product (designs). Smaller runs to
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Talking Shop
accommodate a wide range of products makes inventory management challenging at both ends – manufactures as well as retailers. Every player is applying its wisdom to meet these challenges. ICCTAS (Indian Council of Ceramic Tiles and Sanitary Ware) is also there to play an important role in some common issues faced by Industry as it has active members across the Industry. AC: Your manufacturing plants in Southern part of the country had been facing the gas availability/ shortages for some time. Has the situation improved now? DV: Yes, it has improved and is not a major issue. AC: What is the approximate ratio proportion of wall and floor tiles in Indian ceramic industry from installed capacity/ production point of view ? Is the growth of both these segments similar or one has an edge over the other ? DV: If you combine the wall and flooring surfaces across the built space, you would agree that flooring has got bigger share. But then not every floor is necessarily covered with ceramic tiles while Bathrooms and Kitchen spaces are largely overtaken by ceramic tiles. Another fact is that porcelain (particularly, glazed vitrified tile tiles) tiles conventionally considered as floor tiles, are very much used wall applications now. In light of these two factors, from an application point of view, we can say that consumption of tiles in wall and floor is almost in equal proportion and so is the growth. AC: Like most of the other organized sector ceramic tile producers, your company has also followed an Asset Light Model in recent years. Can we safely assume that this would be the dominant mode of capacity expansion by leading ceramic tile producers in coming years? DV: It depends on two factors – the individual player’s captive installed capacity and preparedness to modify the production set-up for new products and good outsourcing and job-work opportunities. I think that expansion mode would be a good mix of both – own capacity as well as outsourced one in short to medium term. Suiting to an individual player, either end of products in value chain could have a larger share in the asset-light model. Long term strategy can not be generalized but assetlight model, which was first explored and successfully implemented in Indian Tile Industry by HRJ, is there to stay. AC: Can you share with our readers H & R Johnson expansion plans in the next three years? DV: JOHNSON is a global brand and making tiles in India with over six decades of leadership with its innovative products. Now, H&R Johnson India is a division of Prism Johnson Limited which is one of the leading integrated building material company having ready-mix concrete, cement, tiles, sanitary-ware, bath fittings and engineered marble in its portfolio. With 15 plants across the country, HRJ has good capacities in place for a robust growth plan. Through its unique and reputed R&D work, new innovative products will keep on coming. After creating India's first and only Germ-Free tiles for health-conscious population, and Anti-static tiles for server room floor, we are all set to launch tiles for X-Ray and MRI rooms to contain the harmful effect of radiation in hospitals and diagnostic labs which conventionally have a mandatory sheet of lead in these rooms for protection. In Bath division, we have just launched JOHNSON INTERNATIONAL sanitary ware and bath fittings in affordableluxury segment. And another visible ongoing value addition is – the chain of Experience Centres (House of Johnson) across over 20 towns. These company-owned experience centres would serve
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GST HAS PLAYED A POSITIVE ROLE FOR ALL REPUTED AND ORGANIZED PLAYERS the B2C and B2B segment, enabling the discerning customers as well as specifiers to choose the most suitable products for their specific projects. Not all tiles perform equally good in all usage environment. The intent is to present the widest range of tiles and related products under one roof and helping all guests at House of Johnson in making informed decisions. AC: Currently, unorganized sector accounts for about 55-60 % of total ceramic tile produced in the country. How do you see the role of unorganized sector in Indian tile industry five years from now ? DV: Well, it is little complex as today a sizeable capacities in socalled ‘unorganised’ sector is in use for ‘organised’ sector as well. At the same time, we see some brands coming up in the market place with own set of activities and competing with bigger brands in selected customer and product segment; respecting these two terms, let us look at them as ‘semi-organised segment’. In short to mid term, I see a good share for the ‘organised’ and ‘semi organised’ players and present ratio is likely to remain same. AC: It has almost been some time now since the implementation of GST. What positives and negatives have emerged out of this decision for Indian ceramic tile industry. How according to you the implementation of GST has impacted the unorganized sector based in Morbi ? DV: GST has played quite positive role for all reputed and organized players as it helps in creating level playing field and ease in logistics. It can act as an impetus in Morbi to create systems in working and feel be more responsible in the growth journey. Barring initial hickups there due to absence of SOPs and systems in place, I think the organized sector too is coping up with GST and realized that profits, in long term, may not come with small adjustments here and there. Every change has some side-effects and those who could not create a fair and transparent way of doing business and compete had a knee-jerk reaction and few may have been adversely affected too. My view is that it is good for them too to put systems in place and be ethically innovative to compete at a market place. AC: From some of your recent statements ( exports of about 2 million square meters, which was given to press or in company presentations), it seems there is not much focus on exports by H & R Johnson. Any particular reason behind this strategy ? DV: It is not just HRJ if you see organised sector as a whole, the proportion of export is not very high. The domestic market has been quite dynamic and our focus too was set here. Instead of exporting basic products at the lower-end of portfolio, we are interested in exploring value-added product export segment and getting good response too. By saying so, we do not mean that we are not interested in exporting; we are actively doing and making efforts in generating volumes and value from exports.
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Insight
ITALIAN TECHNOLOGY Fast Facts
2017
Variation
2018
No. companies
148
143
No. employees
7277
6905
2231.1
2158.1
580.6
573.1
26
26.6
1656.5
1585
74
73.4
Total turnover (m. Euro) Domestic sales turnover (m. Euro) % of total turnover Export sales turnover (m. Euro) % of total turnover
European Union
367.1
Other Asia*
236.3
Middle East**
177.7
Africa
185.9
South America
139.4
North America***
107.7
Eastern Europe
238.4
East Asia****
129.7
TOTAL
OTHERS ASIA: Afghanistan, Bangladesh, Bhutan, Myanmar,
-5% Brunei, Burkina Faso, Cambodia, Korea, Philippines, Japan, India, Indonesia, Laos, Malaysia, Mongolia, Nepal, Pakistan, Singapore, Sri Lanka, Thailand, Vietnam. MIDDLE EAST: Saudi Arabia, Bahrain, UAE, Jordan, Iraq, -1.3% Iran, Israel, Kuwait, Lebanon, Qatar, Oman, Syria, Turkey, Yemen. NORTH AMERICA: NAFTA area -4.30% EAST ASIA: China, Hong Kong, Taiwan
-3.5%
Technology exposrts by destination (m. Euro)
Table 1
Oceania
Please note: for all geographical graphs, the following
-5 applies:
2.8 1,585.10
Table 1
Change in exports 2017 vs 2018 (% in value)
2017
2018
0-2.5m. Euro
67
73
2.5 - 5m. Euro
31
26
5 - 10m. Euro
28
25
Number of companies in22the sector19by turnover >10m. Euro 2017
%
2018
%
%
%
%
%
%
%
%
%
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Table 1
Table 1 2017
2018
0-2.5m. Euro
40.8
45.7
2.5 - 5m. Euro
41.3
37.9
5 - 10m. Euro
82.6
73.9
Domestic sales by turnover sector415.6 (m. Euro) 416.1 >10m. Euro 2017
2017
2018
0-2.5m. Euro
40.8
47.5
2.5 - 5m. Euro
65.7
59.4
5 - 10m. Euro
111
92
Export by turnover 1,439.00 sector (m. 1386.2 Euro) >10m.sales Euro 2017
2018
Table 1
2018
Table 1
Ceramic tiles
1867
Heavy clay
90.5
Heavy clay
-27.6
30.1
Tableware
37.4
Tableware Sanitaryware
106.7
Refractories
55.1
Other
Ceramic tiles
8.7
Total turnover by machinery sector
(2018; m. Euros)
-3.1
Sanitaryware
-7.6
Refractories
37.3
Other
17.2
Change in turnover 2017 vs 2018 by user sector (% in value)
1
1
Table 1
Table 1 2017
2018
Material preparation
259.9
309.4
Firing
Forming
489.7
349.3
Finishing
Dies
107.6
102.3
Packing/Sorting
106
97.8
Glazing/ Decoration
143.8
181.7
Digital decoration
184.8
156.1
Storage/handling
205.3
195.2
Drying
Turnover analysis based on technology type (m. Euros) 2017
2018
2017
2018
242.3
290.3
262
251.8
135.7
145.5
PuriďŹ cation
32.3
32.8
Process control
17.9
13.6
Engineering
42.4
34.5
7.4
7.9
Turnover analysis based on technology type (m. Euros) Lab equipment
2017
2018
1
1
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EXHIBITION REPORT
EXHIBITION REPORT
Exhibition Report:
Ceramics China 2019 The 33rd China International Exhibition for Ceramics Technology, Equipment and Products (CERAMICS CHINA 2019) was successfully held in Canton Fair Complex, Guangzhou from June 18th to 21st. This top brand pageant in the world’s ceramic industry has an exhibition area of 90,000 sq.m and converges 816 exhibitors from more than 20 countries and regions. With the visiting persontime of 95,180, visitors are from over 100 countries and regions such as India, Vietnam, Iran, Korea, Spain, Russia, etc. Organized by Unifair Exhibition Service Co., Ltd. and co-sponsored by China Ceramic Industrial Association, China Building Material Federation, China Building Ceramics & Sanitaryware Association and CCPIT Building Materials Sub-Council, CERAMICS CHINA 2019 presented a high-quality pageant to ceramic industry colleagues worldwide.
Positive Feedback from Elite Enterprises
Many well-known enterprises in the world have participated in this brand event, such as SACMI, KERAjet, EFI, TORRECID, FERRO, FUJIFILM, EDING, MODENA, JUMPER, HOPE, MEIJIA, BOFFIN and so forth. Exhibitors have made great achievements in the exhibition and lots of feedback was got from the exhibitors. Mr. Paolo Mongardi, the president of SACMI Group, indicated that they have got great success in CERAMICS CHINA 2019. Mr. Jose Luis Ramon Moreno, Vice President & General Manager of EFI Cretaprint, said they had an amazing job in CERAMICS CHINA 2019, sharing their last innovations for ceramics industry. Mr. Ivan Nieto, General Manager of KERAjet S.A. of China said: “The exhibition is amazing, the fair organization is improving compared with last year. In our case, our customers are not only coming from the Chinese market, we're also receiving companies from India, and from south and east Asia. This exhibition is one of the best worldwide.” After visiting the exhibition, Director of Messe Munich, Mr. Igor Palka,
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thought highly of Unifair, the organizer of the exhibition, “You proved again to the world, that you are excellently organizing the largest trade fair in the world on ceramics...”
The Quality of Visitors is Higher Than Previous Editions
The number of preregistered visitors reached 16,859 with almost 10,000 domestic ones. The number of visiting groups organized by governments and industry associations in various ceramic producing areas nationwide was up to 26, with a total number of more than 1,200 people. There were industry professionals and professional buyers from more than 100 countries and regions around the world, and the top five overseas countries were India, Bangladesh, Iran, Indonesia, and South Korea. A total of 7 delegations were organized by foreign ceramic associations and media organizations, with a total number of more than 500 people. Compared with last editions, not only the quantity, but also the quality of visitors was improving and we could see more enterprise executives and decision-makers in the exhibition. Moreover, the proportion of foreign visitors was significantly increased, which means the international popularity and influence of CERAMICS CHINA were enhanced. During the four-day exhibition, the exhibition hall was crowded with hot business negotiation.
Innovative Products Are Always the Highlights and Focus CERAMICS CHINA 2019 involves multiple fields such as building ceramic, sanitaryware, tableware, artware, industrial ceramics, covering a full range of upstream products and services including raw materials, decorative materials, wear-resistant and refractory materials, production/ p r o c e s s i n g machinery and equipment, spare parts, mold, tools, design services, etc. Among them, intelligent products and solutions, industrial robots, digital glazing
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equipment, ceramic slab production technology, foamed ceramic process equipment, new technology of energy saving and environmental protection, new colored glaze material and functional ink, functional ceramic technology and application become highlights and focus of the exhibition this year.
Intelligence becomes the mainstream
Compared with previous editions, the intelligent equipment of CERAMICS CHINA 2019 has been obviously upgraded showing the characteristics of higher efficiency, better quality, more complete functions and higher precision. For example, LANKE displayed its high-speed largesize fully-compatible packaging machine that can realize more than ten kinds of compatible conversion with packaging speed up to 14 packs/ min. The ceramic roller breakage and life management intelligent system by FCRI can realize remote monitoring, data management, mobile synchronous notification, analysis and prediction of roller damage, etc. Meanwhile, the range of intelligent equipment is wider and more comprehensive this year. Equipment such as intelligent packer, AGV transfer robot and intelligent kiln storage and distribution system were also unveiled.
Full upgrade of ceramic slab technology
Ceramic slab has been a popular product in the past two years. At the exhibition, both equipment exhibitors and materials exhibitors have fully upgraded their front end technology under the tide of the ceramic slab. SACMI showcased the most comprehensive slab manufacturing machine CONTINUA+, which is also for the first time in China, while MODENA highlighted its seven-layer drying kiln for large plates and the new multi-functional tunnel kiln that is the first and unique in the industry. Furthermore, there have been single pieces of technical equipment displayed by Chinese enterprises, which drew much attention and became one of the focus of the exhibition.
Huge breakthrough of digital glazing technology
At CERAMICS CHINA 2019, digital glaze technology presented a
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new breakthrough with water-based digital glaze, digital glaze machine, water-based nozzles displayed. The eye-catching digital glazing modular device, which displayed by KERAJET and EFI CRETAPRINT, can be flexibly connected to the front or the back of the inkjet machine to realize the full digital production of decorative line. We have also seen different kinds of digital glazing equipment at the booths of HOPE, KERAJET, EFI CRETAPRINT, etc.
Decorative materials highlight functional features
Evaluating from the products displayed by the glaze exhibitors, it is obvious that the upstream enterprises pay more and more attention to the wear-resistance and anti-skid of tiles. A number of exhibitors have exhibited super wear-resistant glazes and antiskid tiles including DOWSTONE, WANDAO, and so on. On the other hand, being affected by the ceramic slab trend, a large number of pigment, glaze and ink exhibitors exhibited ceramic slabs of larger than 2 4 0 0Ă—12 0 0 m m , as well as showed p r o c e s s i n g technologies such as secondary fabrics and dry granular of slabs at their booths, which could make the slabs achieve well behaved. In terms of ink, there have been ordinary pigment inks, functional inks, osmotic inks, water-based inks, etc., and functional inks include fine ink, peeling ink, and flash ink. Exhibitors, such as DOWSTONE, NGY, KEHAI ANGTAI, have made good progress in improving ink coloring and darkening, and have taken a big step toward more refined and specialized. After more than 30 years of dedicated cultivation and ingenious casting, CERAMICS CHINA has already become a high-quality brand commonly recognized by the global ceramic industry. It is not only the vane to lead the development of ceramic technology, but also a booster to promote the development of the industry. The achievements that CERAMICS CHINA has been able to made today is inseparable from the active participation and support of exhibitors, ceramic enterprises, government departments, media partners, industry associations and other international organizations and institutions, etc. We believe the future of CERAMICS CHINA will be more brilliant.
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