Asian Ceramics - AC16-4 Edition

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AC16-4

OFFICIAL MAGA ZINE:

CE RAMICS CH INA

GUANG ZHOU, 27-30 MAY

INSIDE:

Province Profile: Xinjiang Iran in focus: part 2 OEM: the choices Technical ceramics in South Asia

PLUS NEWS, VIEWS, ANALYSIS AND MUCH MORE!

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C H E M I S C H E FA B R I K E N

News

Contents: AC 16-4

a n i h C o t k c a b W e lco m e

It’s that time of year again, when the industry, fresh from its meetings on the exciting frontiers of India, Russia and Indonesia, turns its attention to China and the longest running Asian-based ceramic exhibition…Ceramics China.

Those of you longer in the tooth will remember the days when two rival shows butted against each other with alarming regularity, but with the relatively smooth operation that we now have, Ceramics China remains – albeit reluctantly for some – the single biggest annual meeting place. We are privileged to have been the Official Journal of this annual show since 1998, and continue to enjoy our long term involvement, not just in supporting the industry, but reportings its news and analysis to a global audience. Long may it continue!

News 6 Inside Asia

Sacmi grows Turkey presence.

10 Welcome

Siti B&T AIM’s for the top…

12 Across The Continent

Openings, closures and industry moves from across Asia.

20 International News Our eye on the international arena.

24 Material Matters Raw materials news and views.

28 Comment & Analysis Pakistan: a regulatory battleground?

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32 www.asianceramics.com

News

www.asianceramics.com Features 32 Iran: out of the shadows

Yogender Malik looks at how Iran’s sanitaryware and tableware sectors are preparing themselves for an open, more easily traded future…

40 Technical ceramics: stuck on the Launchpad?

Rohan Gunasekera examines how despite the huge potential, the sub-continent’s technical ceramic makers are still lagging behind the market.

46 China tile: lines in crisis?

AC reviews how since the middle of 2015, the number of tile lines falling into a state of hibernation has dramatically risen across some of China’s key producing provinces.

64 OEM: the universal answer

In a piece released exclusively to AC, we hear the views and opinions of some of China’s leading ceramic manufacturers, and how they are taking the idea of OEM to heart.

Looking forward Cevisama

Spain 01-05-Feb

Ambiente

Germany 12-16-Feb

Unicera 2016

Turkey

23-27-Feb

Indian Ceramics

India

02-04-Mar

Keramika

Indonesia 17-20-Mar

Ecobuild China

China

29-Mar-01-Apr

Mosbuild

Moscow

05-08-Apr

The 27th China International Ceramic & Bathroom Fair Foshan 18-21-Apr ISH China & CIHE China

30-May-01-Jun

Middle East Stone

UAE

23-26-May

Ceramics China

China

27-30-May

Tecnargilla Italy 26-30-Sep Cersaie

Italy 26-30-Sep

We look forward to seeing our readers and advertisers at the show!

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70 Talking Shop

Your favourite magazine is now available at the App Store…

74 Insight

download today to see your first sample issue!

76 The Hunter And The Hunted

Asian Ceramics: now for mobiles, ipads and androids

Anaylsis AC takes a look at how the maturing manufacturers of Morbi are equipping themselves for an ever-more saturated market.

Analysis and insight into Brazil.

William upgrades to an ipad, but still casts his unsympathetic eye over industry issues: this month he looks at how the Indian Ceramics event has transformed the sub-continent.

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AC 16-4

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Inside Asia KALE GOES WITH GAIOTTO The Kale Group has strengthened its partnership with the Sacmi Group to give yet another boost to sanitaryware glazing operations at its plant in Çan (Turkey): the plant, has in fact, recently under-gone further expansion following the installation of two additional glazing lines, each equipped with a Gaiotto 9-axis GA 2000 robot.

Gaiotto robotized glazing allows manufacturers to maintain constant finished product quality be-cause glaze delivery to the piece is stabilised by the Mass Control system, even where there are variations in environmental conditions and the physical characteristics of the glaze.

The new GDA80 spray gun developed by Gaiotto works in concert with Mass Control; key features include greater compactness (allowing the various parts of the sanitaryware items to be reached more easily), greater reliability and minimal maintenance thanks to easy replacement of key com-ponents.

The two lines will boost output by some 2,000 pieces a day and provide extremely flexible produc-tion capacity, largely as a result of advanced self-learning programming.

Kale has also confirmed that it is greatly satisfied with the glaze recovery system, which recovers all the glaze thanks to the use of booths with dry filters. Beneficial effects include less glaze waste, improved environmental sustainability (thanks to lower booth wash water contamination) and better conditions for workers on the glazing line.

Founded as a ceramic manufacturer in 1957 by Dr. Ibrahim Bodur, the Kale Group is now an inter-national industrial giant made up of 17 firms based in Turkey, Russia and Italy with a total of over 5,000 employees. Its business areas span from the production of a broad range of industrial devic-es to chemical and food products, home appliances, IT devices, tourism and transport. Its products satisfy the needs of customers in over 100 countries via more than 400 sales outlets.

EXHIBITION REPORT EXHIBITION REPORT EXHIBITION REPORT EXHIBITION REPORT

The 27th Cerambath Ended with a Great Success Show Report of the 27th CeramBath

According to official statistics, from April 18-21, the total visitor flow of the 27th CeramBath reached 49,663, 6.5% up than the 26th session. Hereinto, overseas visitors was accounted for 10.4%, 15.4% up than last session, which reflected that the global market was going well. On the other hand, Chinese visitor was 5.6% increasing than the 26th session, a small growth reflecting the current national economic situation. 56.8% of visitors got their gate pass through self-help entry, 13.4% up than last session, which became the main way for visitors to enter the fair.

Exhibits Analysis: Taste the New Fashion Trend In 27th Cerambath, cement tile, wood tile, rustic tile, art tile and other unique exhibits were still hot. New material mosaic and the background wall were also favored by buyers. Rustic tile is crowned as champion in number. In terms of design, the products with diverse styles were blend with more elements of metal, humanity and nature. In terms of color, the products were towards light grey or cool color, closing to international fashion.

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As important as ceramic, bathroom products were developing quietly to be more intelligent and humanized.

Rustic Tile: Retro Is In Right Time and Simplicity Is Popular.

In this exhibition, rustic tile can be seen everywhere with all kinds of styles including simple and fresh style, artistic style, international fashion and so on.

Especially the concise style was wellloved by enterprises and buyers.

Wood Tile: Return to Humanism and Nature In the recent exhibitions, the color and texture of wood tile were more similar to log, resulting in lifelike and exquisite effect. The wood tiles with character, paint and other cultural elements were favored by young. In terms of craft, the wood tile were realized to be nature and easy on the eye with smooth edge treatment.

Cement Tile: Brand New Decoration Cement tile undoubtedly caught your eyes in the exhibition. Compared with last session, the cement tile in this session has richer texture, integrated with new elements of patterns, colors and so on;

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EXHIBITION REPORT EXHIBITION REPORT EXHIBITION REPORT EXHIBITION REPORT

the cement tile was no longer icy cold. The texture is more realistic with greater 3D effect.

Background Wall: Picturesque Wall with Multiple Materials Background wall is integrated with stone, metal, jade, crystal, soft pack and other diverse materials.

It undoubtedly brings more surprise to buyers with innovative picturesque designs and excelsior craft.

Mosaic: Paving New Ideas In this exhibition, the mosaic craft achieved greater improvement and delicacy. Although there was no innovative breakthroughs on craft, but the splicing became more creative and made an great impression by combining with different texture and styles.

Art Tile: Multiple Performance of Artistic and Fresh Style As a stretch of beautiful landscape in CeramBath, Art Tile was much more fashionable and richer in color and its texture, performing different styles of countryside, luxury and artistic freshness.

Hexagonal Tile: Different Sizes, Shapes and Colors Hexagonal tile is classified by its distinctive shape. Larger sized hexagonal tiles were dominated by rustic tile with cement texture.

Smaller sized hexagonal tiles were more prominent in pattern and effect processing. Provided buyers with individual paving solution, visual effect were clear at a glance.

Porcelain Tile: Colorful, Fashionable and Unique In this exhibition, monochrome tiles weren’t common but impressive.

Different colors showed fashion. Porcelain tile with bright color and multiple sizes attracted people’s attention, especially young and children.

Sanitaryware: High-End and Intelligent Trend The sanitary ware in this exhibition, including the bathroom cabinet, shower room and toilet, were developing towards humanization with considerate design and function, which was in accordance with daily

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habits of different users at home and aboard.

Thailand Trade Mission Light up the 27th CeramBath To build a direct and effective communicative bridge and create more business opportunities between manufacturers at China Ceramics City and Thailand real estate developer, Thailand Trade Mission was held by organizer of CeramBath with the assistance from EIPO Investment [S.H] Co., Ltd and Thailand Home Builder Association. During the event, the Thailand delegation visited the CeramBath, showrooms and factories. Also, Thailand-China Building Material Supply Chain Forum and Thailand-China Sourcing Matching Meeting fulfilled their expectation.

International Networking Night Only for Gold Member Club International Networking Night – Multicultural Hits was grandly held at the east lobby of China Ceramics City on the night of April 20.

Professional buyers from Canada, Pakistan, Thailand, etc, Chinese distributors and manufacturers gathered at the salon. Wonderful show from Russian band Cloud, Wing Chun, Latin dance, games and lucky draw brought a splendid performance at the party.

The party kicked off with the song “Money, Money, Money” from the band Cloud. With dinner buffet and great performance, guests from different countries made great connection with other industrial elites under a relaxing environment; what’s more, lucky draw lighten up the party. Raheel from Pakistan told our reporter, “I really enjoyed the night and was not affected by heavy rains. CeramBath endeavors to move forwards in line with international trend and assists in communication and mutual improvement.”

In the 27th CeramBath, Reward Program was launched for those old international visitors who help to bring new visitors to the fair. In addition, Thailand Trade Mission was held during the fair with series events, including Thailand-China Building Material Supply Chain Forum and Thailand-China Sourcing Matching Meeting, so as to promote the cooperation between China and Thailand.

As the organizer of CeramBath, China Ceramics City Group will be dedicated in improving fair services, establishing the communicative platform for buyers and exhibitors and create a better future will all parties jointly.

AC 16-4

asian ceramics

9

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AC16-4

EDITORIAL

At 8.30a.m, 31 March, the opening bell rang for the first day’s trading on the Italian stock exchange in Milan for Siti B&T Group, one of the world’s largest manufacturers of complete plants for the ceramic industry.

OFFICIAL MAGA ZIN E:

CE RAM ICS CH INA GUANGZ HOU, 27-3 0 MAY

Admission to trade on the AIM Italia / Mercato Alternativo del Capitale (Alternative Investment Market) was granted on 29 March this year following a successfully concluded placement open to accredited Italian and international investors and to the Italian general public, with overall demand exceeding supply.

IN SI DE:

Province Profile: Xinjia ng Iran in focus: part 2 OEM: the choices Technical ceramics in South Asia

PLUS NEWS, VIEWS, ANAL YSIS AND MUCH MORE!

CEO Fabio Tarozzi argues that the listing on AIM Italia marks a vital step in the Group’s growth: "We have a clear business plan focused on new product development and market growth. Our placement is mainly for capital increase purposes with the aim of attracting medium- to long-term institutional investors."

The group operates globally with three facilities in Italy and eight foreign branches operating in the world’s major ceramic tile markets: Mexico, Brazil, Spain, Egypt, India, Indonesia, Singapore and China. A new production site is due to open in May in China.

SITI - B&T Group supplies technology through the following divisions: Tile (complete plants for tile production), Projecta Engineering and Digital Design (digital decorating machines and digital graphic design projects), B&T White (complete plants for sanitaryware) and Ancora (finishing systems for ceramic materials).

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

ADVERTISING AND DESIGN

The unit price of shares (3,250,000 ordinary shares, more than 1,500 convertible bonds and 1,250,000 warrants) has been set at 8 euros with an expected capitalisation of around 100 million euros. The company’s free float will be around 26%.

SITI - B&T Group, a business with more than 50 years of history, will see its controlling stake remain firmly in the hands of the holding company of the founding families Barbieri and Tarozzi. It closed fiscal 2015 with an estimated consolidated turnover of 171.8 million euros, an estimated EBITDA of 17 million euros and an export share of around 80%.

CONTACT DETAILS

Advertising Sales Paul Russell Email: prussell@asianceramics.com Direct line: + 44 (0) 208 638 0619 Valerie Adamson Email: vadamson@asianceramics.com Direct line: + 44 (0) 208 133 5273 Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

RESEARCH

FUNDS RAISED WILL ENABLE US TO PURSUE OUR DEVELOPMENT PROJECTS AS PART OF OUR CONTINUED EXPANSION IN ITALY AND ABROAD

As well as being the first Italian ceramic machinery manufacturer to debut on the stock exchange, SITI - B&T Group is the second largest company in terms of turnover to be listed on the AIM segment of the Italian stock exchange.

This, of course, poses an interesting set of questions for other technology suppliers in the market, and an assessment that whether or not it will be possible to remain as competitive as a private company, or whether the age of public ownership has begun? Likewise, with the aggressive demands of most stock exchange investors and shareholders, will this mean that Siti B&T will shift to an even more expansive stance and take on a more acquisitive nature? Time will tell…but the pandora’s box of outside investment is well and truly open now…

Happy Reading!

Research Manager Alex Murphy Email: amurphy@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

EVENTS Events Email: events@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

Bowhead events OVERSEAS OFFICES China Professor Wen Lu and Wen Xin Email: 18980921123@163.com Tel: +86 28 8701 9077 Fax: +86 28 8701 9077 Bangladesh Jahir Ahmed jahir@asianceramics.com India Yogender Singh Malik yogender@asianceramics.com Sri Lanka Rohan Gunasekera rohan@asianceramics.com

HEAD OFFICE Bowhead Media Ltd, 57 Oaks Avenue, Worcester Park, Surrey, KT4 8XE United Kingdom

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Got a general enquiry? use enquiries@asianceramics.com

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

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Government urged to maintain duty levels • EGE Seramik goes for the SACMI-built EKO kiln • Indian organised progress • RAK increases digital decoration options • Kim Hin unveils Shanghai investment • Al-Ez expands tile p and looking forward • Substitutes hit insulator market • Eczacıbası opts for Riedhammer • DBL moves towards s THAILAND

Government urged to maintain duty levels New VAT and SD law will reduce SD on imported ceramic tiles to 45% from 60% now, but will increase the duty on local production to 45% from 15% Ceramic manufacturers urged the government not to lower 60% supplementary duty (SD) on imported tiles, sanitary-ware, and tableware products.

They said the current rate is helpful in protecting local industry, and preventing import of substandard products from China and under-voicing.

Bangladesh Ceramic Wares Manufacturers Association

(BCWMA) made the observation at a pre-budget discussion with the National Board of Revenue yesterday.

NBR Member (VAT implementation) Jahangir Hossain chaired the meeting.

The Value Added Tax and Supplementary Duty Act 2012, due to be effective from July 1, will reduce SD on imported ceramic tiles to 45% from 60% now, but will increase the duty on local production to 45% from 15%.

The SD on imported ceramic sanitary ware and tableware will also be reduced to zero percent from 60%.

SK Bashir Uddin of Akij Ceramics requested the authorities to completely withdraw SD on locally made ceramic tiles.

NBR member Jahangir Hossain said the country is going through a discriminatory rate of protection despite being a signatory to World Trade Organization agreement since January 1, 2005.

Currently, there are 58 local industries with a Tk7,000 crore investment which meet local demand and export.

All these are mainly producing tableware, tiles and sanitary ware.

BCWMA General Secretary Irfan Uddin wants lowering of customs duty to 5% from 10% on import of different raw materials for ceramic goods.

Other demands from the association include reduction of regulatory duty to zero percent from 4% on import of printing ink required in the industry and rescheduling of tariff value to prevent underinvoicing during imports.

- See more at: http:// w w w.d h a k a t r i b u n e.c o m / b u s i n e s s /2 016 /a p r/2 5/ ceramic -makers- 6 0 -sdimpor t-continue#sthash. mX3prQWu.dpuf

TURKEY

EGE Seramik goes for the SACMI-built EKO kiln The modernisation of some of the production plants owned by Ege Seramik – a long-standing Turkish brand famed for its market-leading high quality – has been successfully started-up.

A long-standing partner of the Sacmi Group, EGE Seramik has once again commissioned the Imola-based cooperative to modernise its plant number 4 and upgrade its body preparation department.

Sacmi has supplied two PH6500 presses, the perfect choice for manufacturing 600x600 porcelain tiles. These feature 3-cavity moulds and fast production cycles and have been supplied complete with moulds, accessories and the relative vertical driers; Sacmi has also supplied complete glazing lines plus storage solutions for fired/unfired items featuring magneto-guided vehicles.

The most important part of this order was - for the very

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first time in Turkey - the latestgeneration 145-metre-long EKO kiln with a 2950 mm wide inlet. This takes the place of the 2 old dual-channel kilns installed back in the early 80s.

In addition to containing costs (at record lows for the Turkish porcelain tile industry, thanks to the EKO’s integrated heat recovery system), it also offers outstanding performance in terms of colour tone and tile dimension, advantages greatly appreciated by Ege Seramik’s technicians.

This plant upgrade also included a complete new sorting line by Nuova Fima, the Sacmi Group brand specialising in endof-line solutions; this features all-new EKOWRAP technology, an innovative solution capable of cutting cardboard use by up to 65%, thus increasing output rates and boosting production to over 10,000 square metres a day.

Modernisation of the

grinding department saw the replacement of a large number of discontinuous drum mills with a new MMC 180 modular mill which, combined with an ATM200 spray drier, makes the body preparation department one of the highest-performing in Turkey. Compared to the earlier drum mills, the new modular mill provides energy savings of around 40% and, above all,

reduces labour, maintenance and running costs.

This supply clearly highlights EGE Seramik’s strategy of improving performance by cutting manufacturing costs and modernising older lines. To achieve this it has again relied on its long-standing partner Sacmi, the industry leader in technological innovation and production performance.

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d sector tile producers seek anti dumping duty • System digital print makes printing line-up • Wall tile production falls in Morbi• Mariwasa: 50 not out, start-up • Brick clean-up “inadequate” claim environmentalists INDIA

TURKEY

Indian organised sector tile producers seek anti dumping duty Indian organized sector tile producers are expecting from Indian government to impose anti-dumping duty on tile imports from China. With a considerable slowdown in Indian construction sector and less than expected demand of ceramic tiles in the domestic market, Chinese tile imports in India is forcing Indian producers to cut tile prices in order to stay competitive.

With recession in China, and manufacturers there not having local outlet, has resulted in them dumping tiles into India, according to Vivek Talwar, Chief Managing Director of leading organized sector tile producer, Nitco. "We have taken it up with the Commerce Ministry

to put anti-dumping and need it at atleast 50 percent. That is the current dumping margin at which Chinese manufacturers are dumping into India at," Vivek further adds.

It is noteworthy that Indian Commerce and industry minister, Nirmala Sitharaman has recently stated that one industry that desperately needs anti-dumping duty is the tiles sector.

On a query, about the quantum of imports of ceramic tiles from China, Vivek says “ about 10 % of the total local consumption in India orginates from China.”

Another major organized sector player, Kajaria Ceramics too expresses similar concerns on tile imports from

China. Speaking to Asian Ceramics, a key executive from top management told Asian Ceramics on condition of anonymity, Indian industry has been suffering due to China’s aggressive dumping of vitrified tiles since 2014.

He is of the view that antidumping duty to be levied should be around USD 3 per square metre.

When queried about the quantum of imports from China, the executive replied “ Roughly the damage is to the extent of 7-8 percent of the overall volume which is - about 850 million square meters is the total production of tiles in India - so, you can say, roughly about 60-65 million square meters is coming from China.”

UAE

RAK increases digital decoration options The comprehensive ceramic product digital decoration solutions developed by Intesa-Sacmi have won the trust of Rak Ceramics, one of the world’s biggest, most important ceramic industry players which has an annual output capacity of 117 million square metres, facilities worldwide and distribution networks capable of reaching more than 160 countries.

The eight DHD digital decorators currently installed in the Group’s facilities will now be joined by a further 6 machines, bringing the total number of solutions supplied to Rak Ceramics to 14 (including the one incorporated on the recently supplied all-new Continua+ line). Rak Ceramics’ investment

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decision was swayed by IntesaSacmi’s ability to supply not only the digital printer but also the pre-print software for processing the images prior to their transfer onto the product.

Pre-print image piloting and management systems are crucial: Intesa-Sacmi has responded to this need by developing CHRONO 3.0 colour management software.

This was developed entirely by Sacmi, starting with the specific characteristics of the ceramic production process, the different stages of which (e.g. glazing and firing) contribute significantly to the colour forming process.

Hence Rak Ceramics’s decision to take advantage of Sacmi’s capacity – shared by few others in the industry - to supply not

just the machine but an entire plant management system with advanced pre and after-sales support services.

All the digital printers provided - DHD 708 models with an effective printing width of up to 697 mm and a resolution up to 360 dpi - are also equipped with advanced remote assistance software that lets specialised Sacmi technicians interact with the machine, anywhere in the world.

News, views and analysis www.asianceramics.com

System digital print makes progress The Turkish market appreciates System digitised printing systems and invest in high definition decoration.

Kale, a long-standing System client in all respects, has just added 5 Creadigit to the array of 12 System digital systems already in production for quite some time in the various facilities.

The new machines arrived at the factory in December.

Another confirmation comes from the Seramiksan world that chose the Creadigit "E" model after studying the results obtained by the ceramic subsidiary Rondine.

This is the first batch supply for Seramiksan, which includes other deliveries throughout 2016.

With regards to the new supplies, EgeSeramik has chosen the high printing resolution guaranteed by Creadigit XL, by installing two specimens in the factory in Izmir.

The objective is to launch new products with high-definition graphics on the market.

On the same wave Yurtbay Seramik recently confirmed the purchase of two Creadigit Standard and one Creadigit XL that will be installed.

Preferences of Kale, Seramiksan, EgeSeramik and Yurtbay refer to a crucial testing bench: the results achieved in the market by the end products. A determining factor is the local presence with the Turkey System branch (System Seramik Ltd. Sti.), founded in 1999 and operational in Istanbul.

The team of nine specialists, including salespersons and technicians, supports all the technology in the System world, such as assembly and supervision, commissioning, repair and maintenance and technical and graphics training.

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News

CHINA/MALAYSIA

Kim Hin unveils Shanghai investment Ceramic tile manufacturer Kim Hin Industry Bhd will invest RM10mil in a new production line in its plant in Shanghai to raise output capacity.

Executive chairman Chua Seng Huat said the proposed new line, which was expected to be operational by year-end, would have an annual capacity of 1.5 million sq m of tiles.

“The new line will replace an existing production line which has an annual capacity of one million sq m per annum.

“Once operational, the Shanghai plant would increase its total capacity to 2.5 million sq m from 2 million sq m per annum presently,” he told local media.

Chua said the new investment would enable Kim Hin to produce more to cater for the strong demand for its products in China and export markets, including the United States.

Last year, the company’s China operation chalked up higher sales of RM67.3mil from RM59.5mil in 2014 or an increase of 13%.

According to him, the slowdown in China’s economy had hit the domestic ceramic tile industry, forcing some smaller manufacturers out of business while the over-geared big players had scaled down their

production outputs.

Kim Hin, which ranks among Malaysia’s top three ceramic tile makers, has its main manufacturing facilities in Kuching with annual production capacity of some 7 million sq m.

The company’s Seremban plant has increased its capacity also to 7 million sq m per annum following the completion of acquisition of Johan Ceramics Bhd early this month.

Wholly-owned subsidiary Kim Hin Ceramic (Seremban) Sdn Bhd paid RM28mil for Johan Ceramics’ manufacturing facilities and assets.

Lembaga Tabung Angkatan Tentera-controlled Boustead Holdings Bhd owns 98% of Johan Ceramics.

The acquisition is to expand Kim Hin’s production capacity so as to better position the company in the peninsula market.

Johan Ceramics owned two factories involved in the manufacturing and sale of glazed ceramic wall and floor tiles.

The factories stopped production in the second half of 2015.

Chua said servicing and maintenance works were currently under way to re-start operation of one of Johan Ceramic’s three

production lines.

“We are moving workers from Kim Hin Seremban plant to the Johan plant and have started training new workers.

“We expect the first line with annual production capacity of one million sq m to resume operation by July. It will produce wall tiles under the brand names of Johnson Tiles and Kimgres,” he added.

Kim Hin started the production of Johnson Tiles, a premium product, last year after it acquired UK-based Norcros Industry Pty Ltd, one of the major importers and distributors of Johnson Tiles in Australia and properties owned

by Johnson Tiles Pty Ltd. Chua said Kim Hin planned to upgrade the other two production lines of the former Johan plant next year before putting them back into production.

The proposed upgrading is estimated to cost RM20mil.

“Our Seremban plant has a current production capacity of 4 million sq m per annum.

“There is room to install another production line to boost capacity,” he added.

Kim Hin invested some RM30mil in a sophisticated production line in the Seremban factory in 2014.

Chua said Kim Hin’s Kuching

INDIA

Wall tile production falls in Morbi Ceramic wall tile producers in Morbi are undergoing through a tough period due to continuous declining demand from the key export markets of Middle East countries. A number of wall tile producer, Asian Ceramics spoke to in the recently concluded Indian Ceramics exhibition in Ahmadabad expressed their concerns on the declining exports volume in the region.

Jignesh Patel, CEO of Maruti Tiles, a leading producer and exporter of wall tiles from Morbi told Asian Ceramics, “ Out of 450 wall tile units in Morbi, about 250 units are operating at less than 50 % of the installed capacity. As

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most of the wall tile production is meant for export markets of the Middle East countries, which are undergoing a slack in demand, wall tile producers in Morbi have been forced to cut the production levels.”

Vijay Shah, owner cum Managing Director of Sun Ceramics, a mid sized wall tile producer from Morbi told, “ We ( Morbi based producers) have concentrated our efforts on serving the Middle Eastern market due to better price realization.

As economical situation in the region has decorated in last six months our orders books have suffered badly. In a number of cases, exporters have failed to

receive the payments, which has put a lot of strain on tile producers bottomlines.”

Jayanti Bhai, Managing Director of another Morbi based wall tile producer, Veto Ceramics told AC, “ In last two of years, there has been an attempt by Gujarat based wall tile producers to export to African and central Asian countries in addition to the oil rich Middle Eastern countries. However, price realization and freight costs in case of the Middle Eastern countries gives better margins to domestic exporters. Undoubtedly, slowdown in the Middle Eastern countries has put a number of wall tile producers in Morbi at a disadvantageous position”.

plant would continue to be the main producer of Johnson Tiles, with a target output of 500,000 sq m this year.

Johnson Tiles are also produced in Seremban and Shanghai factories for both domestic and overseas markets.

Kim Hin has maintained doubledigit growth in sales over the past three years,with group turnover soaring to RM367.3mil for financial year ended Dec 31, 2015 (FY2015) or a 17% hike from RM313.4mil in FY2014 and RM261mil in FY2013.

Group pre-tax profit jumped to RM46mil in FY2015 against RM29.5mil in FY2014 or an increase of RM16.5mil or 56%.

The company hopes to maintain the strong sales in the current financial year.

However, Chua said that first quarter (January-March) sales were expected to be lower than the corresponding period in FY2015 when there was a big jump in sales as clients stocked up ahead of the implementation of the goods and services tax, which came into force in April last year.

EGYPT

Al-Ez expands tile printing line-up A G5 latest-generation modular digital printer developed by SITI B&T Group’s member company Projecta Engineering was recently installed at the facility of one of Egypt’s leading producers of high-quality ceramic and porcelain tiles, Al Ezz Ceramics & Porcelain Co., better known as Gemma.

Specially designed to enhance all the characteristics of digital technologies produced to date, the G5 is equipped with 7 colour bars capable of holding up to 12 fully independent modules for maximum creative freedom and has a print width of 700 mm.

The G5 joins the other four machines in the previous Evolve series installed by Projecta Engineering, allowing Al Ezz Ceramics & Porcelain Co. to continuously expand its distribution network.

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News

PHILIPPINES

Mariwasa: 50 not out, and looking forward Mariwasa is marking its 50th year in the tile industry, and looking forward to a bright future.

Established in 1966 by the brothers Emerson and Edison Coseteng, the company, a pioneer in the industry, was founded on “a vision of producing ceramic products that would meet world standards for beauty and durability… (that) was to be achieved by harnessing the skills, discipline and creativity of the Filipino artisan,” said Mariwasa Siam Ceramics, Inc. (MSC) President Phaskorn Buranawit, who is also the Country Director for SCG Philippines.

As an important part of the

celebration, Mariwasa is unveiling its newest tile designs grouped into three avant-garde sub themes namely MORPHOLOGY, INDIEFLUENCE and INNOTHERAPY which cater to different facets of modern urban consumers.

Launched on March 16 at the 21st WORLDBEX, the Philippines’ largest construction building materials exposition, the latest collection is touted to strongly complement the company’s push for total home solution.

“This is our commitment to be always in step with the demands of an upbeat, young and upwardly mobile market,” said VP for Sales and Marketing Jakkrit Suwansilp. “We are launching

Substitutes hit insulator market Popularity and high usage of composite materials in insulator industry is having an adverse impact on Indian ceramic insulator producers. Currently, three major producers from organized sector and about 20 unorganised sector players in the country have a cumulative installed capacity of 210,000 tons of ceramic insulators per annum.

Speaking to Asian Ceramics, Mr. D. K. Gupta, Director of Khurja , UP based Rajeev Industries, an unorganized sector capacitor producers told “ Since composite materials insulators are cheaper by almost 30 % as compared to ceramic insulators, most of

the newer electrical installation have gone for composite materials insulators in recent times, which has had an adverse impact on ceramic insulator industry as a whole.”

Speaking to Asian Ceramics, a key executive from one of the largest ceramic insulator producer, Aditya Birla Insulators confirmed the statement made by Mr. Gupta. When queried about the longetivity of composite material insulators, the executive told. “ True the composite based insulators doesn’t have a long life as compared to ceramic insulators, but in most of the government contracts, cost reduction is the utmost priority and our industry suffers on this front.”

THAILAND

DBL moves towards start-up Bangladesh based DBL Group, one of the leading apparel exporter of the country, will start its new venture in ceramics by setting up a new tile manufacturing plant by the mid of this year in the country.

The company, which has invested about 300 crore Tk

asian ceramics

beneficiaries receiving complete toilet products and fixtures including wall and floor ceramic tiles, waterclosets, sanitary wares and tile accessories. Trained Mariwasa skilled personnel were fielded for installation of the products and to work on the required renovations.

According to Buranawit, the market is steadily growing, the horizon is decidedly widening, and opportunities will not be wasted. “We are certainly proud of those fifty years of uncompromising quality, and this we intend to carry on for maybe the next fifty years with our brand of innovation and excellence. We are sticking to what has made us what we are today, and so much more. There is no stopping us,” Buranawit concluded

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innovative designs that reflect the preferences of an important segment of our market, the millennials,” he added.

Mariwasa was the first to manufacture both wall and floor tiles in a vast range of colors and sizes.

Mariwasa is also committed in improving the quality of life of the community through its corporate social responsibility (CSR) project.

In partnership with the Department of Education’s Adopt-a-School Program, the company has undertaken the Mariwasa Public School Toilet Renovation Project which aims to improve sanitation facilities in public school toilets in far-flung communities across the country. A total of 50 schools spread across Luzon, Visayas and Mindanao were chosen as

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in the new project is expected to have an installed capacity of 6 million sqm of porcelain tiles. This would be one of the largest tile producing unit in the country. The company has acquired most of the production equipments for the new plant and is awaiting approval of natural gas connection for the

Eczacıbaşı opts for Riedhammer Turkish group Eczacıbaşı which leads the European and Middle Eastern sanitaryware markets thanks to group company Vitra which has an output capacity of over 5 million pieces per year – has confirmed that it will be firing its sanitaryware with Riedhammer technology.

An HWS 6/500/210-G PF shuttle kiln is, in fact, already up and running at the plant in Bozüyük.

This kiln - built by Riedhammer, the Sacmi Group’s German subsidiary - has an effective volume of 63 m3 and an output capacity of about 400 complex WCs per cycle.

Vitra made this key investment decision because, first and foremost, products fired/ re-fired in this Riedhammer kiln are of optimal quality, a result achieved thanks to a temperature uniformity that is

exceptional for a kiln with an effective height of 2.1 m.

Another key factor in the decision was the low specific gas consumption, just 1,400 kCal/ kg of product, a figure usually associated with tunnel kilns rather than shuttle kilns.

These results have been accomplished thanks to the outstanding design principles of Riedhammer Pulse Firing shuttle kilns, which allow optimal heat distribution throughout the kiln chamber.

The partnership between Eczacıbaşı and Sacmi, then, just keeps going from strength to strength, providing everbetter product quality, higher energy savings and more sustainable de-velopment.

upcoming project.

Coming up at Nayanpur in Gazipur, 70 km from the capital, Dhaka, the project has been lying in limbo for more than three years due to lack of gas connection, though the construction started in 2010.

The group aims at becoming the leading ceramic tiles

producer in Bangladesh but has no previous experience in the sector. DBL Group, a leading Bangladeshi manufacturer founded in 1991 in Dhaka is one of the key players in the textile industry.

It supplies quality apparel to major retailers and the top brands in the fashion industry

*For an in-depth interview with Vitra, check out our next issue.

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News

INDIA

Brick clean-up “inadequate” claim environmentalists The recent notification issued

by Uttar Pradesh government directing the brick kiln industry to change its technology is "inadequate" and will not help curb pollution, a Delhi based green body has said.

Centre for Science and Environment (CSE) said that the UP Pollution Control Board (UPPCB) has issued a notice to brick entrepreneurs of Ghaziabad, Gautam Budh Nagar and Hapur and directed them to convert from natural draft kilns to induced draft kilns in 90 days.

The step has been taken to reduce air pollution from brick kiln sources to improve the air quality in Delhi and NCR. "The UPPCB has rightly identified brick kiln as an important source of air pollution.

However the technological solution suggested - changing over from natural draft to induced draft - is inadequate and will not lead to reduction in pollution.

"It is very likely that the majority of the kiln would adopt a short cut by fitting a dummy fan which will never run," said Chandra Bhushan, deputy director general of CSE. He said that the notification should have also addressed issues such as arrangement of bricks, fuel feeding mechanisms and air flow which are very important factors to ensure pollution reduction.

CSE researchers also noted that the notification should also include a change-over to fly ash brick manufacturing.

It is estimated that the brick kiln sector is the fourth largest contributor to PM10 emissions in the NCR region after transport, road dust and thermal power plants.

While brick manufacturing has been banned in Delhi, it has thrived in areas surrounding the capital with NCR's massive thrust on construction providing it the

boost. There are around 700 brick kilns in the three districts of Ghaziabad, Gautam Budh Nagar and Hapur.

Experiences from other states suggest that pollution reduction from kilns working on induced draft has not been satisfactory, it said.

CSE said that the UPPCB notification also misses the opportunity to move brick kiln operators of NCR to flyash brick making.

The green body said that power plants in and around Delhi have huge stocks of unutilised ash in their ponds which is also one of the major contributors to air pollution in Delhi-NCR. "During summer, coal and fly ash contribute about 30 per cent of PM10 emissions. A CSE analysis shows that the pond ash availability in Dadri and Badarpur is around 12 and 12.5 million tonnes respectively.

"Ghaziabad, Gautam Budh

Nagar and Hapur together supply nearly two billion bricks to New Delhi and surrounding regions - these bricks have a potential to utilise over 2 million tonnes of fly ash," CSE said.

It said that there is adequate technical understanding and experience available in the country to reduce pollution from the brick kiln industry.

"The UPPCB and the brick kilns owners can use these to make the right technological choices that will help in reducing air pollution in the NCR region as well as modernise the brick industry.

"The UPPCB needs to come up with a clear technological road-map for the brick sector to effectively contribute towards curbing air pollution," Bhushan said.

CSE recommended that the notification should be amended and it should state that the existing natural draft 'Bulls Trench Kiln' should be replaced with cleaner technologies such as natural or induced draft 'Zig-Zag Kiln, VSBK, Hoffman or Tunnel Kiln.

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News

International News Exports to drive Portmeirion success United Kingdom

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xports are crucial to the fortunes of Portmeirion Group, one of the main companies leading a fightback by Stoke-on-Trent’s pottery industry after a tough couple of decades. The historic sector has struggled to compete against cheap Asian imports.

“We have worked really hard to revive ourselves and the great backstamp [an identifying mark on pottery] that is Great Britain,” says Phil Atherton, group sales and marketing director. “We have really pushed the ‘Made in the UK’ message, which we believe has had a significant benefit in terms of growing our export business.”

He adds: “Throughout the world people appreciate British quality and design. Stoke-on-Trent is a ceramics centre for the whole of the world and it’s seen as a bestpractice area.”

Portmeirion has won a Queen’s Award for International Trade after raising overseas sales by 51 per cent over six years. The company, which is quoted on Aim, manufactures

ceramic tableware, cookware, home accessories, gifts, placemats, coasters and trays and has four brands — Portmeirion, Spode, Royal Worcester and Pimpernel.

More than 70 per cent of its products are exported to over 60 countries. The company’s biggest foreign markets are the US and South Korea, but it recently launched in China, Taiwan and Thailand and re-entered the Japanese market. “Export is where we see our future growth,” Mr Atherton says.

Pre-tax profit in 2015 increased 13.6 per cent to a high of £8.6m, while revenues reached a seventh consecutive record, up 11.9 per cent to £68.7m. Almost half of production is carried out at its Stoke factory, where it recently invested £1.5m in a new kiln and other equipment to raise capacity by 50 per cent. The rest of its output is made at factories around the world, including China.

Stoke’s ceramics industry traces its origins to the 17th century, when potters were attracted to the

CDK gets ready for opening Nigeria

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DK Integrated Industries is now ready to open its state-of the-art Porcelain and Ceramic factory in May 2016, as revealed by the Chief Executive Officer, Dr Khater Massaad, in a media conference at the factory in Shagamu Ogun state.

This ultra modern factory is built on a million square meters of land to meet global Ceramics and Sanitary wares industry demand, particularly in Africa and Europe.

The CEO, Dr Khater Massaad enjoys over two decades of experience and track record of investment in the ceramics industry world. He predicts that Nigeria will be a major hub for exporting of Ceramic tiles and Sanitary wares to other African countries and Europe in the nearest future with the establishment of CDK Integrated Industries.

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“Our aim is to produce high quality ceramic tiles and sanitary wares products; everyone is in need of high quality products. We aim to meet the best quality in the world matching and possibly surpassing the American and European standards” he added.

According to him “CDK Integrated Industries’ vision is to be number one in Africa in terms of product quality and pricing”.

Dr Khater Massaad went further to reveal that CDK Integrated Industries is already engaging Nigerians that are buying into the vision of the company as a professional organisation with global best practices” CDK Integrated Industries’ corporate social responsibility and environmentally friendly business is already set on the right track.

Standard Organisation of Nigeria

Staffordshire area by the availability of red clay and coal. The local industry’s rise was spearheaded

by Josiah Wedgwood in the 18th century, who led the way for other manufacturers such as Josiah Spode and Thomas Minton.

In its 19th century heyday, Stoke was home to more than 200 potbanks and employed 100,000 people. Production dwindled in recent decades and many famous brands have disappeared. But recently, several of the remaining companies including Steelite and Dudson have reported record sales or expansion plans. Mr Atherton says: “It’s not just Portmeirion that is performing well — but we are performing ahead of the pack.”

Portmeirion’s Botanic Garden design, launched in 1972, still accounts for almost half its sales and is popular in Asia. The company’s oldest continuously produced pattern is Spode Blue Italian, which marks its 200th anniversary this year. To appeal to younger consumers, the company has also developed products in

partnership with designers such as Ted Baker and Sophie Conran.

Mr Atherton says the key to success will lie in understanding cultures around the world and adapting products accordingly.

Asian consumers, for example, buy more bowls than plates. To widen the appeal of its ranges, the company has been expanding sales of non-ceramic products such as glassware and textiles. Portmeirion’s aim is to be seen as a homewares as well as ceramics business. “The first logical extension of that is table top — table linens, kitchen linens, table mats, glass, cutlery, etc,” he adds.

“Gifting is where we really see the growth in the future. A lot of our pieces can be sold as individual gifts.”

Stoke’s continued ceramics revival will depend on companies reshoring production to the UK, or keeping it there in spite of the cost and scarcity of skilled labour. Many skilled workers left the industry in the 1980s and 1990s and young people were encouraged to pursue other careers.

(SON) certificate is currently under processing with plans for ISO certification in the shortest possible time”.

CDK Integrated Industries Sanitary Wares factory will be producing five hundred thousand pieces annually of several models of European designer collections, using the best technology, best raw materials, highest standards, world class fittings and soft closing hinges, amongst others.

CDK Integrated Industries Porcelain and Ceramic tiles factory will be producing 60X60 CM, 30×60 CM and 40x40CM polished, glazed, glazed polished and soluble salt tiles with superior quality, using state of the art technology and latest digital printing equipment.

CDK Integrated Industries will be employing over a thousand Nigerians to be part of this dream of a world class factory that will contribute to the development of the economy as CDK Integrated Industries will be reducing the

importation of tiles from Italy and other countries thereby also helping to give value to the Nigerian economy.

Over sixty five million square meters of ceramic tiles are imported into Nigeria. CDK Integrated Industries plan is to help Nigeria address this challenge of importation by producing the highest quality of tiles and Ceramic products that will shift the world focus to Nigeria in the area of ceramics and sanitary wares.

With active contribution to the construction of over fifty factories across the world, Dr Khater Massaad concluded that the investment in Shagamu Ogun state Nigeria will transform the economy of the communities and the country.

He is convinced and proud of the relationship with Nigerian investors which makes him describe CDK integrated industry as a solid company with a strong commitment to excellence in service.

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News

Times changing for local tile output Nigeria

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ith 25 years of robust business, Mallinson and Partners, a leading Nigerian tile producer has moved from trading to manufacturing and is seeking government's support in order to add more value to the Nigerian economy.

Mallinson and Partners Limite is one of the leading tile manufacturing companies in Nigeria. As the third indigenous company in the tile industry, the company has built a solid track record for itself with the production of quality tiles for the Nigerian market and for export. The company, which is also involved in the manufacturing of building materials, and plastics products (such as chairs, stadiums, cups, and other plastics), has been waxing strong in the business of importation and distribution for 25 years. The plastic product company, which is known as Nispo plastics limited is a sister company of Mallinson and partners.

The Chief Executive Officer of Mallinson and Partners Limited, Mallinson Ukatu, noted that the company has moved from trading to manufacturing due to the increasing needs of the market and the quest to attain a leadership position in the industry, adding that they maintain a good pricing system, efficiency, fast delivery

and good customer feedback mechanism in order to win the hearts of customers.

He explained that in the business of tile production, the location for outsourcing the material is very important, stating that they carry out the mining by themselves in order to know what they want for the finished products and "with this, we are sure of what we are using for our product."

"We have had incidences in the past where we want to use kaolin, then they will mix kaolin with weathered granite. This means there is iron content on this material, and you will not have best final product when it comes out.

Another aspect is that we are doing a full body tiles which is known as certified tiles," he added.

Ukatu stressed that most people claim that certified tiles are ceramics tiles, clarifying that the certified tiles implies that the body will be the same, and the colour will not change.

According to him, a pure ceramic tile which is glazed will certainly fade out after a period of time.

He also faulted the public notion that China produces fake products, stressing that China's products are good, depending however, on what quality the parties desire and also their knowledge about the product."We have been doing business for the past 20 years and

Sentuo eyes tile investment

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eading manufacturer of steel products in Ghana, Sentuo Steel of China, has said it plans to open an $80 million ceramic tiles factory in the country by December 2017. The factory would be the first modern tile manufacturing unit in Ghana, where 90 % of the total ceramic tile requirement is imported at a high cost.

Currently there are six small scale ceramic tile producers in Ghana, but all of these producers use obsolete technology and produce inferior quality ceramic tiles and most of the high quality, porcelain and vitrified tile demand is met through imports.

According to the Managing

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material will be higher and if you put it into your final product it's going to have a problem in producing a good quality. We outsource our raw material in Nigeria, from Ogun, Sokoto, Katsina, and Oyo," he explained.

"The sharp practices in the industry are that the miners give you what is available by mixing it with different quality that are cheaper in order to give you the final product. For instance, if you want to buy dolomite, they will mix it with 20 percent Kaolin; therefore the quality will not be the same. We have tried as much as possible to have a Union on these sharp practices, but it has never worked out. If we had a Union, we will able to checkmate the activities of these miners and what they are offering.

"Tile production has been in Nigeria for the past 30 years.

But it was just two companies that have been in the business, before we came into the industry as the third indigenous industry. In the past, we had a government factory in Kano which produced Water Cisterns (WC) and there was also another one in Calabar, but they stopped producing in the 70s and 80s.

The only ones existing are those owned by foreigners, which have been in the country for the last 30-35 years.

ACIMAC set to unveil Paolo Sassi as new chairman Italy

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also been importing since 22 years.

What this implies is that we know what we want; we have enough knowledge and where to go to get the right product," he said.

Speaking on the outsourcing of materials for tile production, Ukatu noted that most factories and industries outsource their materials from miners who are not well trained and would want to cut corners by giving the factory concerned low quality materials for production.

"Tak is a material used for tile production, it is found in the North and Oyo state respectively. But the quality of tak from Oyo state might be good as the one from Niger state," he added.

He pointed that some of these small mining companies get this material and mix it up with other bad raw materials, which will affect the finished product.

According to him, these companies carry out these sharp practices in order to make a living for themselves, "unlike in Europe, where a buyer is sure that a particular company is specialised in supplying a particular finished product".

"You could have vesper mixed with quos stone because in mining, stone can mix with other little materials.

If you don't have beneficiating machine, you cannot beneficiate out, then the iron content of this

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Director of Sentuo Steel, Xu Ningquan, “ Ghana's investment climate is quite attractive, which enables the company to invest in various sectors in the country. “ He said the ceramic factory will employ at least 700 Ghanaians when completed. In addition to the ceramic factory, the company will also invest about $60 million in a cement factory in the country,.

Sentuo Steel was established in Ghana in 2010, and began operation in 2012 after acquiring the former Wahome Steel factory. The Chinese owners hold 75 percent shares, while Ghana's Social Security and National Insurance Trust (SSNIT) holds 25 percent.

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aolo Sassi, Chairman of BMR Spa, is the nominee for the chairmanship of ACIMAC - Italian Ceramic Plant and Machinery Manufacturers’ Association.

Following consultations with member companies, the designation com-mittee consisting of past chairmen Franco Stefani, Pietro Cassani and Pierluigi Ponzoni submitted Sassi’s nomination to the Association’s Board of Directors.

The Board of Directors expressed its approval for the nomination to be submitted to the Members’ Meeting to be held in June. The Members’ Meeting will elect Sassi, currently Vice-Chairman,

to take over from Fa-bio Tarozzi at the helm of the Association for the four-year period 2016-2020.

Paolo Sassi, born in Scandiano (Reggio Emilia) on 18 April 1955, began working at BMR Costruzioni Meccaniche in 1985 as a sales engineer. In 1990 he acquired a shareholding in the new company BMR Spa, a leading manufacturer of end-of-line machinery for the ceramic industry. In 2001 he became the majority shareholder and was appointed Chairman. In 2004 BMR acquired Cemar, a company based in Schio (Vicenza) specialising in the production of polishing machines, and appointed Sassi chairman.

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Raw Materials News

Imerys: innovation remains the driver

ALEXANDRE SEVAGEN, IMERYS CERAMICS TECHNOLOGIES CENTRE DIRECTOR, TALKS TO AC ABOUT THE GLOBAL MATERIAL GIANT’S PLANS FOR THE FUTURE. What is innovation for Imerys Ceramics ?

Imerys Ceramics creates value through innovation: we have always proposed new solutions to our customers to help them meet their challenges. Innovation is therefore in our DNA and our way to differentiate from companies offering just minerals. Innovation at Imerys Ceramics stems from our own research, changes in ceramic technologies, and also from the discussions we have with our customers with regards to their own innovation. Here are a few examples of new products launched recently: in the tile industry, dedicated kaolin for inkjet printing and new feldspar blends for glaze enabling fast firing; for kiln furniture, Turntable Tableware System (Plate Tower) which eases the handling and the stacking on kiln cars; and out of the traditional ceramic industry, new mineral additives for combustion.

What changes / new technologies do you see coming on the market or is changing the market?

The tile industry, driven by the 4.0 revolution, is reshaped by the development of digital printing that will require also digital glazing.

In addition big format are gaining market share and require special solutions. The sanitaryware producers are developing new complex shapes and are adding functionalities to their products that also require high quality materials. The biggest trend is the production of shorter series to have a fast renewal of product range and to accommodate for rapid change in customer tastes. Additive manufacturing could be a potential solution to this challenge.

How do you think that the digitalization of economy will affect the ceramic industry ?

Digitalization enables among other things the ability to manufacture economically short series, very tailored products everywhere over the world. It will also accelerate the automation of plants and trigger the need for kiln furniture highly compatible with robot handling. New production techniques like additive manufacturing will emerge and will need high performing and very consistent raw materials delivered such as ready to use feedstock. The Ceramic industry should benefit from this trend as the product appeal to end customers should increase.

customers depending on the “Technology Readiness Level” (TRL).

Through these partnerships our innovation projects are ranked to evaluate the best partner for us and ensure we are developing fast, adequate solutions to customers’ challenges.

On which topics is Imerys Ceramics currently working?

Two of the main projects for Imerys Ceramics in 2016 are: i) developing the right materials for glaze jetting technologies on tile; and ii) enhancing kiln furniture solution for highly automated/fast handling plants. We are also concentrating on assessing additive manufacturing that could be applied to ceramics on top of the current niches where it is used today.

How does imerys ceramics intend to partner with its customers?

We always start our innovation thinking from the needs of our customers. We, therefore, like to be involved at the earliest stage of customers’ projects. We regularly exchange ideas and solutions with some of them to select the projects on which both parties will benefit the most from collaboration.

For example, we master raw materials knowledge while our customers master their production process and know which new products they want to develop. Combining those two areas of know-how enables both parties to reach the best solution more quickly and efficiently. We have developed a partnership culture and usually work with jointdevelopment contracts to ensure that all parties interests are aligned.

Does innovation also include mining raw materials?

Everything at the beginning comes out of nature. Imerys is convinced that mastering mining and enhancing raw materials through transformation ensure the quality and the efficiency of customers’ operations. That is why our geology team is attached to our innovation group.

How is imerys ceramics organised ? Do you work with third parties on innovation ?

The Imerys Ceramics R&D Center, one of the 8 main laboratories of the Imerys group, is located in Limoges, France, within a large Ceramic research cluster including a world class University in Ceramics, equipment manufacturers, and start-ups developing new technologies.

This main lab supports several regional R&D centres in Bangkok, Thailand, Selb (Germany), Aixe-sur-Vienne (France) and Newton Abbot (UK). In addition, our production facilities include 23 laboratories for quality control and close to market technical support. The Imerys Ceramics R&D Center focuses on supporting the development of major break-through applications and provides support to local teams when they develop new blends or improve product’s characteristics.

As part of a big group, Imerys Ceramics can also leverage resources available in other business units. For example, Imerys’ know-how in kaolin for paper was used by Imerys Ceramics to develop new kaolin dedicated to glaze for tile digital printing.

One other part of our DNA is to look for partnerships. We are partnering with third parties like universities, equipment manufacturers, or

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Raw Materials News

Raw Material News ZIA APPOINTS NEW EXECUTIVE United Kingdom // Zircon The Zircon Industry Association (ZIA) is pleased to announce the appointment of Dr. Keven Harlow as Executive Director - Designate with effect from April 1st 2016. Dr. Harlow has an impressive academic and work history which is well suited to the needs of ZIA going forward: Dr. Harlow will be working closely with incumbent Executive Director Chris Barrington over the coming months and will progressively take over the various responsibilities and tasks, starting with those where he can bring immediate value to ZIA and its members.

Dr. Harlow said “I’m looking forward to joining ZIA and using my technical, commercial and regulatory experience in building on ZIA’s three strategic pillars of market development, regulatory support and communications with stakeholders and taking ZIA to the next level.”

Chris Barrington said “ZIA is fortunate to have found someone with

Keven’s background and experience to build on the successes of the past few years and to achieve the future goals that have been set in this challenging market environment, including among others to maintain and develop value-adding relationships with customer industries.”

Dr. Harlow has been involved in the metals industry for his entire professional career. A metallurgist and materials scientist graduate, he spent over 20 years in the commercial area of the global metals industry where he was able to marry his technical knowledge with sales and marketing experience. He served as Managing Director of Höganäs (GB) Limited for five years. Not forgetting his technical roots, Dr. Harlow became involved with the EU-REACH regulation in 2006, supporting various companies and trade associations with REACH compliance strategies and consortia management.

SAWA LAUNCHES NEW OPERATION India // Kaolin M S Sawa Clay & Minerals Limited, a major raw material producer and processor based in the state of Rajasthan has commenced operations at its new china clay processing plant. A subsidiary of, Popular Minerals, which has emerged as one of the key miners and processors of kaolin and one of the largest suppliers to ceramic industry owns 26 mining leases over twenty square kilometers ( about 1000 acres) at Sawa in dist Chittorgarh of state of Rajasthan.

Popular Minerals operates five small and a large kaolin processing unit at Sawa.

The company can process about 12,000 TPA of washed kaolin from each of its five washing plants, which are located within a periphery of10 km of its kaolin mines. Last year, the company established a new plant ( M S Sawa Clay & Minerals Private Limited) , with an installed capacity of 400 TPD of processed kaolin. The company also produces 650 ton per day glass grade silica of high purity. With the new plant, Popular Minerals has become the second largest kaolin processing company in the country, trailing behind the current market leader English India

Clays Limited ( EICL), which has a capacity of 240,000 TPA of processed kaolin.

Jayesh Dave, General Manager of Popular Minerals told Asian Ceramics, “Our new plant, M S Sawa clay and Minerals Pvt Ltd. is one of the largest kaolin plant to produce kaolin for ceramics, paint and paper industries. Equipped with a state of the art R & D center, the plant utilizes ore from our own mines, which have high recovery rates and high after fired whiteness along with low yellowness.”

Mr Dave further told this magazine “With our new kaolin processing plant, we are able to process premium grades of kaolin, which are used in high end ceramics.

Indian ceramic industry, particularly Gujarat based producers have added huge capacity of ceramic tiles and sanitary ware in recent years. This has resulted in huge demand from this sub-segment. Hitherto, most of the kaolin needed in these ceramics units used to come from Southern part of the country, which entailed high transportation costs. With our new plant, we have been able to reduce transportation cost as well as delivery time to the ceramic clusters of Gujarat.”

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AC 16-4

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News Anaylsis

News

Pakistan: a regulatory battleground?

P

akistan’s National Tariff Commission (NTC) has received an application from country’s leading ceramic tile producer, Shabbir Tiles alleging dumping of ceramic tiles from China. In its application, Shabbir Tiles has stated that unregulated and cheap imports of ceramic tiles from China are leading to a material injury to domestic ceramic tile producing industry and companies.

Low installed capacity and even lower capacity utilization rates by Pakistani ceramic producers has increased the volume of tile imports and dumping in the country. Though, three of the major tile producers have augmented the capacity and streamlines their production processes, but continuous inflow of cheap tiles in the country have rendered them to operate at low capacity utilization levels.

According to Shabbir Tile’s CEO, Reza Ansari, Dumping and smuggling of tiles has reached 50 per cent of the local production capacity, around 30 million square metres (sqm) of tiles (mainly from Iran and China) found way into the local market during March 2014 and February 2015, while Pakistan’s current capacity is 60 million sqm.

Increasing presence of Chinese tiles over the last many months need to be controlled.”

Sharing details of the issue, a key executive from another leading Pakistani tile producer told Asian Ceramics. “ The current government has passed new anti-dumping laws and made necessary amendments in the earlier anti-dumping laws with a view to remove in-built deficiencies so as to make NTC strong enough to protect the domestic industry in Pakistan more effectively. Now the alternate remedy has been provided in the new anti-dumping law against interim orders of initiation as well as preliminary determination.”

Under review

The Chinese export sales to Pakistan during the period under review were $116 million according to the statistics by the Customs. Over 500 companies are involved in this case, most of which are from Foshan and Fujian. Involved companies from

28

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Foshan accounted for 44% of the total amount involved in the case, while Fujian took up 33%.

However, Pakistan has lodged totally 22 anti-dumping cases against China ceramic tile since 2006, ten of which were lodged after 2015. That is to say Pakistan is speeding up its frequency of anti-dumping, and the amount of anti-dumping cases tend to increase in the future.

So what should Chinese companies do? AC surveyed some of the leading observers of the industry within China, to assess their views: “Things are changing. In the previous anti-dumping cases rose from Pakistan, involved companies mainly were those who had large export volume. However, lots of companies that have smaller export volume received the notice of antidumping investigation in the 2016 anti-dumping case.”

“However, the economic and political environment between China and Pakistan are good and stable. It is a favorable macro-environment that China doesn't have in the antidumping cases from Brazil, Columbia, Korea and other countries.”

“Pakistan also recognizes Chinese market economic status legally, which will make the defense of China easier when tackling dumping accusation. The recognizing of market economic status means that Chinese companies can compare the domestic sales price of tile in Pakistan with that in China to estimate whether dumping exists or not. What's more, according to the previous anti-dumping cases, data auditing in Pakistan usually is not so strict and precise as in other countries.”

“Importantly, the complaining party is a listed company. It means that its finances are transparent, and Chinese companies and lawyers can easily search its annual financial statements and all other financial information needed. It will offer significant benefits for the process of nodamage counterargument. What's more, companies can amend the negative factors base on the complaining party's financial statements after submit the questionnaire.”

Importance of importers

“Pakistan tile importers' assistance is one of the key favorable factors that Chinese companies cannot ignore. Importers played a very important role in the history of Pakistan anti-dumping against China. In 2015, importers appealed against the preliminary determination of 2014, which finally forced the claimant to cancel the application of anti-dumping investigation, and ended the investigation in 2015. Companies should actively seek support from Pakistan importers.

“Of course, anti-dumping investigations are not just a battle of law and trade, it's also a battle affected by politics. Therefore, lawyers suggest that companies should take full advantage of resources and experiences of the Chinese government, Commerce Department, Chamber of Commerce and other related departments, so as to negotiate with Pakistan on a higher level. This tip applies especially to those countries that have friendly national relationship with China like Pakistan.

“However, the complaining party possesses non-negligible political influence in Pakistan, and its financial statements showed that the company has faced great challenges due to the imported tiles from China in recent years. These factors might affect the definitive determination of the investigation apparatus and the court, which Chinese companies and lawyers should pay attention to.”

There is, therefore, more cause for optimism than usual with an antidumping case, but unless Chinese companies comply with the system, they will definitely miss out. For example, those that did not respond to the investigation (results of which we are now awaiting) they will lose the opportunity to apply for both separate tax rates and average tax rate for 5 years. It means that they can only bear the maximum tariff rate of Pakistan. In the Pakistan anti-dumping preliminary determination in 2014, Spain was levied tax rates of 14.99%-139.46%, Malaysia 25.41%-63.33%, UAE 84.54% and Iran 111.57%.

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Analysis: Whiteware

OUT FROM THE SHADOWS IRAN ALL SET FOR A MAJOR PLAYER

Yogender Malik looks at how Iran’s sanitaryware and tableware sectors are preparing themselves for an open, more easily traded future…

O

vershadowed by the gigantic ceramic tile industry of the country, the Iranian ceramic sanitary ware and tableware production has not been able to achieve its true potential in past few years. Slowdown in domestic economy, lack of requisite capital, limited export potential due to inability product differentiation by producers and lack of state-of- the art technology has hampered the development of these two sub-segments of our industry for quite long in the country.

A number of ceramic tile producers have gone for capacity expansion and modernization exercise in past few years.

However, in sanitary ware and tableware sub-segments, this exercise was limited to a select few. With easing of sanctions, existing producers from these domains and new entrants are waiting on the sidelines and are expected to emulate the tile producers.

Currently, a major portion of sanitary ware and tableware exports are largely driven by re-exports from resellers and traders based in the UAE, but the easing of sanctions will enable producers to start building official supply ecosystems in Iran, ultimately leading to a spurt in exports. The U.A.E., particularly the port of Dubai, has long been an important trade conduit for

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Iran in the region. Iran’s imports from the Gulf region amounted to around $35 billion last year, the bulk of which were exports from the U.A.E. that were imported via Dubai, according to figures from the Washington-based Institute of International Finance. Globally, the U.A.E. is one of Iran’s largest trade partners alongside India and China.

Western economic sanctions against Iran caused Iran a great deal of problems during the past few years. Embargoes crippled Iran's export and import and led to the freezing of Iran's assets in foreign banks. This both heightened pressure on domestic producers and created a sense of insecurity among foreign investors, thus, making them reluctant to join Iranian projects. In recent months , a large number of foreign companies have lined up clamoring for access to Iran's 80-million strong market. A large number of MoUs have been signed between domestic and foreign firms. Though, ceramic sector has yet to witness a MOU or foreign investment, but in coming days such a move cannot be ruled out.

Three outstanding factors are responsible for the unabated expansion of the Iranian ceramic sector: an abundance of raw materials, inexpensive energy sources and a youthful population – more than half of Iran’s 80 million inhabitants are under the age of thirty five.

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Analysis: Whiteware

Ease of doing business

During the past few years, Iranian ceramic producers had to purchase some of the key raw materials at exorbitant prices, due to a lack of legal channels for remitting and reimbursing funds. In addition, they had to pay high interest rates on loans. They had to pay heavy brokerage expenses, as way to bypass sanctions, to transfer money to the import destinations. This had decreased their competitiveness in international markets to some extent, when compared to many of their regional counterparts.

Lifting of sanctions will enable a number of sanitary ware and tableware producers to get access to some of the key imported raw materials and technology in an easier manner, as compared to an year ago period.

Material machinations

Iran is endowed with vast resources of most of the raw materials needed for ceramic sanitary ware and tableware production. In last few years, specilaised raw material processing enterprises have emerged in the country, which have enabled ceramic producers to enhance their quality standards. In fact, country’s raw material availability and high quality standard of raw material puts its ceramic manufacturing industry ahead of other countries in the GCC region.

Currently kaolin is available in abundance from mines located at Abadeh, Gonabad, Koshk-e-Nosrat, Marand, Sarum, Takestan and Zonuz; Feldspar from mines at Azna, Boroujerd, Yazd and Zanjan. Hamadan province is a rich source of silicate. Ball clay and sodium silicate are ample available in province of Isfahan.

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Sanitaryware in focus

Benefiting from one of the lowest production costs in the region, a long ceramic tradition, a large and trained workforce, a strategic location within the Middle East, adoption of stateof-the- art technologies and easing of crippling sanctions has made Iranin ceramic industry as center of attraction for global ceramic industry. Domestic producers, which for long were busy in catering to dpmestic market have started exploring geographically distant export markets. Post lifting of sanctions, Iran, one of the largest and most heavily populated countries in the Middle East has emerged strongest contender for the regional manufacturing powerhouse tag.

The country has a developed and distinct economic structure in a strategically important region with more than 300 million consumers. Construction sites and cranes can be seen almost everywhere in Tehran. Many new buildings are under construction and older ones are being renovated.

AC 16-4

asian ceramics

33

Analysis: Whiteware

Sanitary ware production, consumption, imports and exports in Iran in last 10 years Year

Installed Capacity (Tons)

Actual Production (Tons)

Domestic Consumption (Tons)

Imports (Tons)

Exports (Tons)

2015

168,000

NA

NA

NA

NA

2014

143,000

121,000

126,000

14,200

19,200

2013

135,000

118,000

122,200

12,900

17,100

2012

126,000

106,000

104,900

13,700

14,800

2011

124,000

101,000

104,400

15,500

12,100

2010

116,000

96,000

100,300

18,000

13,700

2009

109,000

89,000

93,500

19,000

14,500

2008

102,000

85,000

94,000

22,000

13,000

2007

97,000

83,000

93,000

27,000

17,000

2005

81,000

67,000

79,000

24,000

12,000

With sanctions lifted, more constructions in commercial and residential sector are expected to give a boost to sanitary ware demand and production. In fact, easing of sanctions against Iran could see the Iranian sanitary ware and tableware become the fastest-growing market in the Middle East and Africa (MENA) over the next five years.

Catered by about 20 large and mid-sized sanitary ware producers, Iranian sanitary ware industry is at a crucial crossroad. Whereas, in last decade, the Iranian sanitary ware industry has transformed itself from ramshackle state backed enterprises to some of the best state-of-the art manufacturing plants, which not only meet a lion’s share of domestic demand, but, have also emerged as significant exporter in the region. Economic turbulence in the region (which has forced sanitary ware producers in the region to operate at low capacities), Iranian sanitary ware producers are in an ideal position to capitalize on the opportunity of meeting the demand of domestic industry, but also increase its footprints in the wider regional market in an increasing manner.

Currently, Iran is largest exporter of sanitary ware to war devasted and under construction markets of Iraq and Afghanistan. Besides, these two markets, Iranian producers export their products to some of the CIS markets. However, with easing of sanctions and increased access to some other key regional markets of GCC countries will be a lucrative option for Iranian sanitary ware producers. Among the GCC countries, Iranian producers have their presence in UAE and to some extent in Oman, which has the closest political relationship with Iran of all the Gulf States.

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The distribution of the Iranian sanitary ware industry’s production costs between the major categories of raw materials, energy and labour amounts to approximately 41%, 17% and 42% respectively.

This cost distribution gives the Iranian sanitary ware industry a strong cost advantage over most of its major international competitors, since most of the required raw materials can be obtained relatively cheaply from domestic sources and domestic labour costs are also comparatively low. Whereas the cheapest Italian sanitary wares sell at about $9.50 per kilogramme, the price of the most expensive Iranian-made products is about $3.00 per kilogramme.

Although the Iranian industry still has difficulties matching its Italian, French, or American competitors in terms of quality, the price advantage should help it overcome this weakness in neighbouring countries. The deployment of more modern machinery and the increased use of some imported raw materials could even open the door for increased exports to more competitive markets in Europe and elsewhere.

Cord Group

Comprising of two sanitary ware manufacturing units, Cord Group is the leading sanitary ware producer in Iran. Chini Cord and Zomorrod Ceram, the two subsidiaries of the company have established themselves as one of the most reputed producers on the strength of their quality products. Chini Cord, the larger of the two companies was established in 1994 in western part of Iran in the city of Kermanshah, the company has an installed capacity to produce 18,000 tons (about 1.35 million pieces) of ceramic sanitary ware every

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Analysis: Whiteware

year. Zomorrod Ceram, the second sanitary ware producing unit of the company has an installed capacity of 10,500 tons/ year ( 850,000 pieces) from its manufacturing facility in Hamadan city.

MORE THAN HALF OF IRAN’S 80 MILLION INHABITANTS ARE UNDER THE AGE OF THIRTY FIVE

Golsar Fars

The last expansion in 2011 saw installing a new kiln( supplied by Sacmi). The shuttle kiln features a total volume of 75 cubic meters in its two-deck configuration, and joins a kiln of the same model, which Golsar installed in 2008.

The kiln contains six 6-m-wide cars, each of which can be loaded with up to 40 pieces, such as one-piece WCs weighing up to 40 kg each. In addition, this kiln features a fire-lane system, in which burners located alongside the pieces to be fired are used in conjunction with the main burners placed underneath the loading decks. The incorporation of two vertical lift doors and an automatic car handling system reduces space requirements and simplifies kiln management.

Golsar Fars uses the kiln for the first firing and re-firing of both the normal mix of sanitary ware articles and one-piece water closets, as well as to fire-fix decal transfers onto sanitary ware.

Tableware focus

As the largest in the Middle East region, Iranian ceramic tableware industry could not have asked for better times. Confined to exporting most of their tableware in the region, Iranian ceramic tableware producers are optimistically looking towards European and American markets, after lifting of the sanctions.

Large business delegates of Italian, German and other European nation companies have visited the country in last nine months to explore business and trading possibilities in the Persian gulf. Though, no final announcement have been made, but some of the ceramic tableware producers are considering OEM proposals. Three of the major tableware producers, Asian Ceramics spoke to on this aspect declined to share the details of these possibilities.

Zarin Iran Porcelain Industries

One of the best known porcelain tableware producers, Zarin Iran has made a niche for its products in the domestic and exports markets.

Exporting fine porcelain products to more than twenty countries in premium and economy range, Zarin Iran boasts of the state of the art technology deployed at its plant, which has an installed capacity of 8000 TPA. Winning various awards at national and international stage, Iranian company claims that its Italian A Golestan design is the most famous and recognized design and has played an important part in company’s success. The company claims that focus on the production technology and quality has been the enabling force for the company. The company closely follows the market trends and needs in terms of functionality and design. Zarin Iran has carried out several extensive studies to carry out expansion plans and are waiting for right time for the expansion. The company is expected to take a call on its expansion exercise in next few months.

With its manufacturing located at Isfahan ( also Esfahan), Zarin Iran’s main outlet on the Esfahan- Tehran highway draws a number of visitors and is one of the most visited tableware outlet in the country.

According to Abbas Ali Ghassai, Chairman and Managing Director of the company, “Zarin Iran Porcelain Industries produces 8000 tons/ year fine hard porcelain tableware which is one of the largest actual installed capacity of ceramic tableware in the country.” He further says “High quality of our products have enabled us to successfully penetrate European and North American markets besides catering to our domestic market. Our major export market in the recent years have been; Canada, Germany, Spain, France, Italy, Sweden, The

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Major Sanitary ware Producers in Iran Company

Location

Capacity

Cord Group ( Chini Cord & Zomorrod Ceram)

Kermanshah

24000 TPA

Shiraz

18,000 TPA

Yazd

12000 TPA

Sina Tile and Ceramic Industries

Tehran

14000 TPA

Aras Sanitary ware Industry

Tabriz

8000 TPA

Mina Sanitary ware Industries

Tabriz

10000 TPA

Pars Ceram

Varamin

14000 TPA

Pardis Chini

Tehran

6000 TPA

Negin Ceram

Yazd

6000 TPA

Kasra Ceramic Company

Yazd

6000 TPA

Chininam

Yazd

6000 TPA

Esteghlal

Yazd

4000 TPA

Rose Sanitary ware

Yazd

6000 TPA

Aras Sanitary ware Company

Tabriz

8000 TPA

Golsar Fars Morvarid Sanitary

Netherlands, Russia, Turkey, Ukraine, Azerbaijan, Georgia, India, Saudi Arabia, UAE and Iraq.”

Ashkan Chini

Coming up in the boom years of Iranian economy ( 2000-2007), Ashkan Chini has made a place for itself in Iranian ceramic tableware industry. The company with an installed capacity of 7500 TPA claims to have one of the most technologically advanced plant in the country. Supplied by Sama, German arm of Sacmi Group, the state of the art plant was installed in two stages. The second drier and kiln came into operations in 2009.

According to the technology supplier for the plant “ From a

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Analysis: Whiteware

technological standpoint , Ashkan Chini plant represents a marked level of innovation compared to the usual standards in the area, especially as regards the innovative spray drier processes, iso-static press, pressure casting and fast firing.”

Toos Chini Hard Porcelain

With an installed capacity of 22000 TPA of ceramic tableware, Toos Hard Porcelain is the largest porcelain tableware producer in the Middle East. The company, which commenced operations in 1991 with a production capacity of 4200 TPA in Mashhad. Spread over a total area of 260000 sq. meter and 74500 sq. meter functional premises, the company has the largest fcatory area for a tableware producer in the Middle East.

The company has attained a stable position in tourism and hospitality industry in the world by designing and producing tableware for hotels, restaurants, private organizations, government departments with their exclusive logos. In the last expansion in 2011, Toos Porcelain added bone china in its product portfolio. The company has an installed capacity to produce 4000 TPA of bonechina tableware.

Claiming to have a 25 % share of the domestic ceramic tableware market, Mashhad based company attributes its success to in house design, modeling, printing house and advanced laboratory.

It also claims to have one of the most extensive decal designing and printing department in the Middle East, where its design team carries out studies in order to find out what are the most wanted decals by local and global markets and has created more than 500 of decorative decals.

Maghsoud porcelain

Maghsoud Porcelain, which commenced production of ceramic tableware in 2002 with an installed capacity of 3500 TPA is an umbrella organization for half a dozen other companies. Besides porcelain, the company produces bone China and opal glassware and fireproof glass (Pyrex) tableware with brand names is Iropal & Irex. Installed capacity of ceramic tableware was increased to 6000 TPA in 2008. Sepideh Jam Toos, the glass tableware company of the group was established on 2007 with a production capacity of 70 tons/day comprising a variety of glass ware (white and decorated) which are fully tempered.

Maghsoud use full automatic production line and modern technology, fast firing kiln and iso static press. Dorst & Netech made Iso static press machine, kilns from Heimsoth ( Germany), Glazing machine from Voit and grinding machine from Lippert makes it most technologically advanced ceramic tableware producer in Iran.

Located at Saveh Industrial area of Kaveh, Espidar Porcelain is one of the mid sized tableware producers in the country. The company, which started with a modest 1100 TPA capacity at the time of its establishment expanded its installed capacity by more than double to 2300 TPA in 1996. Streamlining of operations and installation of state-of-the art technology in later years catapulted the company as one of the high quality tableware producers in the country.

Mohammad Jamalian, Managing Director of Espidar Porcelain is optimistic about the great potential of Iranian ceramic table ware industry after lifting up of sanctions, particularly exports. He says “ Iranian producers have the twin advantage of low cost of production and high quality of finished products. With easing of sanctions, Iranian producers will be able to achieve more exports to Middle East and European countries.”

asian ceramics

Year

Production

Consumption

Exports

2014

97,205

65,780

39,398

2013

91,646

64,200

35,211

2012

87,349

63,296

29,156

2011

87,745

66,718

26,345

2010

84,956

66,167

23,076

Major tableware companies in Iran Company

AC 16-4

Location

Nastaran Porcelain

Tehran

Chini Hamid Company

Tehran

Chini Hamgam

Tehran

Milad Chini Company

Tehran

Mahdi Porcelain Company

Yazd

Marjan Porcelain Company

Qazvin

Eshfahan Porcelain Manufacturing Company

Espidar Porcelain

38

Ceramic Tableware production, consumption and exports in Iran

Khazar Porcelain Industries

Esfahan Rasht Industrial City

Hamgam Chini Company

Tehran

Kashan China Company

Tehran

Nour Chini Company

Tehran

HYS Abhar

Tehran

Bargh Avaran Gilan Porcelain Company

Rasht Industrial City

Alborz Porcelain Company

Tehran

Taghdis Porcelain Company

Tehran

Milad Chini Company

Tehran

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Analysis: Technical ceramics

Stuck on the technical ceramics demand in South Asia Rohan Gunasekera examines how despite the huge potential, the sub-continent’s technical ceramic makers are still lagging behind the market.

G

rowth in India’s technical ceramics industry has been disappointing. Certainly, the country boasts of large and expanding space, nuclear and defence sectors where several types of advanced ceramics products are in use. But in more mundane albeit niche applications like bioceramics, automobiles and electronics growth has been slow or stagnant. The growth has mostly been in applications like abrasives, refractories and products for foundries.

Many products are still imported despite a decade or more of domestic research and development and manufacturing efforts. Some large Western and Japanese advanced ceramics multinationals do have a presence in the subcontinent but these are mainly sales offices and only a few have manufacturing plants. Competition from low cost firms in China and Vietnam is increasing and squeezing profit margins of Indian companies.

The main problem appears to be scale. In many technical ceramics applications the market has not expanded as expected and domestic companies are reluctant to make the required investments especially after seeing some firms fail in manufacturing efforts. The government’s new ‘Make in India’ policy could give a fillip to the sector and lure some world leaders to set up manufacturing facilities from the point of lower cost of manufacture and export the products back to overseas markets. India’s manpower cost are relatively low, even land costs are low and power is not a problem except in certain areas.

Faltering recovery?

After some years of stagnant or slow growth, industry players are reporting signs of a recovery with economic activity picking up. India has just been declared the fastest-growing large economy by the World Bank with a solid growth performance which continues to lead among large emerging market economies. Overall, India’s real GDP growth for FY2015 is estimated at 7.4 percent. A continuation of this solid performance requires strong private investment, on the back of an expected push in infrastructure spending, an improved investment climate, and less leveraged corporate and financial balance sheets, the World Bank said in a new report on South Asia. “India will remain the motor of the region, growing at close to 8 percent,” it said. Future growth performance will strongly rely upon investment growth. While public investment can set the stage, private investment will eventually have to take over. “Additional equity financing will be critical for India’s heavily leveraged corporate

40

asian ceramics

AC 16-4

sector,” it said.

Although India is a big country, the market for such advanced products is still not growing to justify investment from domestic manufacturers, according to Dr A.L. Shashi Mohan, past president of the Indian Ceramics Society and Managing Partner, VIPRA, aa consultancy based in Bangalore. He explains that it is a “chicken and egg problem” with Indian investors willing to invest in local manufacture only if sales are good and profit margins wide enough to make the investment sustainable. “If the numbers are good then someone comes,” said Dr Sashi Mohan, a CSIR Scientist at IIT-Bombay who worked in the areas of electronic and thermal ceramics. He worked for Grindwell Norton Ltd as a founder member of their R&D Centre at Bangalore and made significant contributions in the development and commercial exploitation of several newer abrasives and ceramic products.

A large part of technical ceramics products go to serve India’s steel industry. Earlier the Indian steel industry was using 25 kg of refractories for a tonne of steel. With good quality refractories today hardly 8-10 kg of refractories are used per tonne of steel now. There are two reasons – the quality and knowledge of refractories has improved and steel plants are more applications conscious.

The growth of India’s aluminium industry is also driving use of advanced ceramics products with furnaces lined with advanced refractories like silcon carbide and silicon nitride and very

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Analysis: Technical ceramics

launchpad sophisticated carbon refractories, says Dr Sashi Mohan. India is now the 3rd largest aluminium producer in the world so the advanced ceramic market is growing because of the aluminium industry.

Kiln furniture growth Another area of growth is in kiln furniture for firing in crockery and other ceramic bodies. “The reason for more advanced ceramics use is that we want to reduce the firing cycle - make it as fast as possible - so need good thermally conducting materials,” says Dr Sashi Mohan. “Also, in India almost every month more and more villages are getting electricity. So demand for electro porcelain material increasing. These are the main areas where the advanced ceramic market in India is growing because user industries are growing.”

The foundry industry in India, where advanced ceramics is used for lining, is growing rapidly. With the trend in Western countries for industrial pollution laws to become stronger, foundries are not able to meet them and hence the industry globally is shifting to developing countries like India whose laws are more relaxed.

The boom in India’s automotive industry should make it a sector that should drive growth in technical ceramics. But the pick up has been slow. Bharat Heavy Electricals Limited (BHEL), the largest engineering and manufacturing enterprise of its kind in India and one of the world’s top manufacturers of power plant equipment, is doing research into ceramic honeycomb based catalytic converters. Still, most products used in India are imported, especially from Corning, the world leader in ceramic honeycomb catalysts.

“Prices of imported ceramic honeycombs from Corning are so low nobody has ventured into large scale manufacture,” says Dr Sashi Mohan. “Those who did, have not been commercially successful.

Although India’s automobile industry looks big, the typical numbers needed for automotive ceramics is far more than the number of automobiles being produced in the country.”

Import tariff protection is an option, although unlikely given the trend towards more free trade and lowering of trade barriers. If protection is given, then the problem is that local products become expensive compared with internationally available products. In any case. It is not possible to completely block imports.

Nevertheless the outlook in the longer term is good as the auto industry is growing although questions remain how competitive local industry is in competing with global giants. The Indian auto industry contributes 22 per cent of the country's manufacturing GDP. The Indian automobile industry was forecast to become third largest in the world by 2016 with many multinationals including Toyota, Ford, GM, Hyundai and Honda, having either built or in the process of building factories in the country. The Indian passenger vehicle market is expected to grow at a compound annual growth rate of 12% by 2020 with major global OEMs planning to make components in India as a sourcing hub for their global operations.

In electronic ceramics the outlook is the same, as the market is not

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ADDITIONAL EQUITY FINANCING WILL BE CRITICAL FOR INDIA’S HEAVILY LEVERAGED CORPORATE SECTOR big enough for domestic players to achieve economies of scale yet.

“The numbers are such that it’s easier to import from world leaders rather than put up an industry for the Indian market,” says Dr Sashi Mohan. “And domestic players can’t export because of competition.

That’s why the industry has not really grown – many tried but closed shop because profits are not coming.”

Demand for advanced ceramics like capacitors in the auto sector should grow though given the spread of hybrid cars and electric vehicles and the advancing electrification of vehicles. They are good for harsh usage environments and are needed in applications that require high reliability, like in ECUs, drive control units and safety devices. Growing use of smart phones and tablet computers should also drive growth of ceramic capacitors which are ubiquitous in electronic circuits.

Still, economies of scale are not seen as being attractive enough for domestic manufacture except in niche areas like strategic and defence applications where making profits are not the prime motive.

“If you take the smallest firm in China and Japan, the numbers are in billions,” explained Dr Sashi Monah. “Those kinds of numbers are not needed here.”

With the growth of India’s economy and industry and economic slowdown in traditional markets like Europe, new players are entering the abrasives industry, which had largely been a duopoly of two big players, Grindwell Norton, now part of Saint Gobain, and Carborandum Universal.

Grindwell Norton and Carborundum Universal each have about 35% market share in the organised segment with the rest shared by small sized and local players. The unorganised sector consists of imports from China particularly at the lower end and some players from Europe and Japan having their agents and distributors in India.

Together, coated abrasives and bonded abrasives account for 90% while super abrasives, which are specialised products account for 10% of the market.

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Analysis: Technical ceramics

The other area where there’s potential for advanced ceramics is in dental and bone implants. The market is growing but still metal implants are more, says Dr Shashi Mohan who estimates it will take another 5 years or so for the domestic industry to really come into force.

Market forecasts say that India is one of the countries seeing a significant increase in the use of medical ceramics in dental implants, orthopedic implants, surgical and diagnostic instruments, and other applications. The rapidly growing demand in end-use applications, competitive manufacturing costs, and high economic growth rate are the driving forces for the medical ceramics market growth in the subcontinent.

And ceramic membrane filters used in a variety of applications are in demand given their key advantage over polymeric membranes being their resistance to heat and chemicals. Applications range from industrial waste water treatment to treatment of effluent waters in the petrochemical and oil and gas industries to filtration of food, beverage and pharma products.

Principal companies Saint Gobain

Saint-Gobain, the French glass manufacturer, has a range of technical ceramics products in its portfolio, including those made by its subsidiary Grindwell Norton. The latter’s main businesses in this segment are Silicon Carbide and High Performance Refractories.

Silicon carbide has a wide range of applications taking advantage of its chemical inertness at all temperatures, resistance to thermal shock, hardness, resistance to abrasion, and sinter ability. The main applications for SiC based ceramics are kiln furniture, burner nozzles, sliding bearings, process components for the semiconductor industry, passive armor for the security and defense industries, seal rings and diesel particulate filters for the industrial and automotive industries.

Saint Gobain has commissioned a refractory products factory, with one of the largest capacities of its kind, at Perundurai SEZ in Erode District in Tamil Nadu, to mostly cater to the export market. Silicon carbide products, used primarily as raw material in the manufacture of abrasives and refractories, are made by Grindwell Norton’s plant at Tirupati in Andhra Pradesh and also manufactured by its subsidiary, Saint-Gobain Ceramic Materials Bhutan Private Limited, at its plant near Phuentsholing in Bhutan.

Saint Gobain’s High Performance Refractories (HPR) unit makes body armor plates for use by Indian security forces, ceramic technology to control exhaust emissions and refractories, such as kiln linings, gas fire radiants, steel and glass making crucibles. HPR has two plants: one at Bengaluru and the other at Halol, near Vadodara in Gujarat. Grindwell Norton is ranked No.1 worldwide in silicon carbide and in zirconium-based abrasives.

Grindwell Norton’s strong exports have offset the recent slowdown in domestic demand. But domestic sales are expected to grow with the domestic industrial recovery along with a pick-up in automotive volumes. It currently exports to countries ranging from Asia Pacific to Africa mainly through Saint Gobain group companies. Exports, which form about 12% of sales, have grown at about 25% CAGR over FY1215. Grindwell Norton is able to capitalise on the export opportunity owing to its worldwide presence with the Saint Gobain group facilitating marketing and providing service support to its customers.

With the parent group planning to triple its India group business (including glass) by 2019, Grindwell Norton intends to make exports the key focus area. Apart from abrasives exports, the new HPR plant at Halol has the capacity and capability to address a number of growth

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India’s automotive industry should make it a sector that should drive growth in technical ceramics

opportunities in export markets.

Carborundum Universal

Carborundum Universal Ltd., part of Murugappa Chettiar Group, specializes in the manufacture of both fired and monolithic refractories for industrial applications. It is a vertically integrated company manufacturing Abrasive (40%), Ceramics (22%) and Electro minerals (38%). Carborundum Universal operates in India and 7 other countries through 10 subsidiaries and 3 joint ventures with manufacturing units are spread across 30 locations. The industrial segments it serves include ceramics, carbon black, cement, glass, chemical process, sponge iron, non-ferrous, iron and steel, and foundry. The company’s main fired product lines are silicon carbide, nitride bonded silicon carbide, mullite and zircon-mullite, high alumina, and insulating fire bricks. Monolithic product lines include conventional, low cement, insulation, and self-flow castables; gunning materials; ramming masses; and laying mortars.

TATA

TATA Advanced Materials Limited supplies India’s aerospace and defence sectors and its defense and industrial composites division is working on new orders relating to personnel and vehicle armour.

It has signed an MOU with National Aerospace Laboratories (NAL) of CSIR, to exchange technology and manufacturing capabilities boosting its technical design and development of primary aircraft structures in composites. The company has managed to reduce losses in recent years.

Morganite Crucible

Morganite Crucible (India) Limited is an Indian subsidiary of Morgan Advanced Materials PLC (U.K.), a big player in the global medical ceramics market. It makes crucibles, foundry products and accessories, particularly silicon carbide and clay graphite crucibles. It offers a range of crucibles, foundry products and furnaces for several

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Analysis: Technical ceramics

industries, such as aluminum and iron melting and gold mine processing.

Central Electronics

Central Electronics Limited is an Indian government enterprise under the Department of Scientific Jyoti Ceramic and Industrial Research Jyoti Ceramic is one of the (DSIR), Ministry of Science pioneering manufacturers of & Technology which aims technical ceramics in India to commercially exploit with several proprietary indigenous technologies ceramic body formulations. developed by national Products include ceramic laboratories and R&D grinding media and ball mill institutions in the country. linings L.T. electric switch Piezoelectric ceramics and fuse gear components, are among a number heater parts and mechanical of critical components pump seal rings and developed for strategic Zirconia ceramic dental applications and supplied blanks and restoratives.

Tableware production and kiln furniture does provide a possibility for technical to the defence forces. It Jyoti Ceramic exports ceramics makers makes various grade of 65% of its production and piezo-ceramics elements has established a sales for low power as well subsidiary company in as high power application. It is also involved in microwave Germany and an office in U.S.A. to cater to customers in Europe, electronics and makes phase shifters for radar - critical elements North America, Mexico and Brazil. Customers for Jyoti Ceramic's for electronically scanned phased array antennas that allow the grinding media include industries like ceramic and manufacturing antenna beam to be steered in the desired direction without industries and customers from oil & gas, shipping, electrical, physically being re-positioned. Central Electronics Limited’s electronics and defense industries. It diversified into bio ceramics product are among the few indigenously developed products to cater to the country's growing demand for ceramic dental inducted by Indian defence forces. restoratives and intends to further expand its bio-ceramic range of products to include ceramic prostheses for knee, hip joints and Bhukhanvala Industries other body parts.

Bhukhanvala Industries Advanced Ceramics Division, formerly Bharat Heavy known as Boron Carbide (India) Ltd., makes technical ceramics Bharat Heavy Electricals Limited is the largest engineering and for a range of applications in the automotive, oil and gas, nuclear manufacturing enterprise of its kind in India and is one of the power, industrial and defence industries. It claims to be India’s only oldest and largest insulators manufacturing units in the country. manufacturer of boron carbide powder and is a leading supplier It ranks amongst the leading manufacturers of power plant of nuclear grade boron carbide to Indian power companies and equipment in the world. Just over half of India's nuclear power government agencies. The company also supplies hot pressed generating capacity has been installed by BHEL. The company and sintered boron carbide neutron shielding components to makes a wide range of porcelain insulators for use in power India’s nuclear program. Its plant is located in Navsari, Gujarat transmission lines and sub-stations. These include disc insulators and it is a vertically integrated manufacturer of raw powders, for 1200 kV transmission lines, solid core insulators up to 400 kV sintered and hot pressed ceramics for the firm’s patented armor and hollow porcelain insulators up to 765 kV AC. technology. These defense applications provide protection against CERALIN, a highly abrasion resistant ceramic material, is used small and medium caliber weapons. Its Boron carbide (B4C) in thermal power stations and for various industrial applications. product is an extremely hard boron–carbon ceramic material BHEL’s high tension insulators and ceramic wear resistant liners used in tank armour, bulletproof vests and numerous industrial are made by its electro porcelain division. BHEL has indigenously applications. Bhukhanvala Industries silicon carbide products developed high alumina ceramic wear resistant materials in its are widely used in applications requiring high endurance such as R&D to combat various wear prone areas in coal fired thermal car brakes and car clutches. Its boron carbide finds applications power stations, and the steel and cement industries. It has in the hard metals (Carbides) industry, in the production of tools developed porous ceramic membranes for physical separation and machine components, in ultrasonic drilling, and also in rocket of suspended particles in the micron range with raw water quality propellants and armoured plates. becoming a predominant issue for both industrial use and drinking purposes. These can replace conventional chemical processes CeramTec used to treat water giving the added advantages of less chemical CeramTec, one of the world’s top manufacturers of technical handling and disposal and also quality output regardless of input ceramics, has a sales office in India. The Germany-based variations in raw water quality. BHEL has entered into a long term firm supplies advanced ceramic components for automotive, Manufacturing Associate Agreement with GE India Industrial Pvt. electronic, construction and industry sectors. It makes Ltd. for membrane based technology. BHEL has also developed technical ceramics used in thousands of products ranging from High Alumina Ceramic Balls which replace conventional steel balls components for artificial hips and ceramics used in circuit boards used for pulverising different materials in ball mills. to components for bearings and faucets

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Analysis: Tiles

State of the Nation line closures cause increasing concern AC reviews how since the middle of 2015, the number of tile lines falling into a state of hibernation has dramatically risen across some of China’s key producing provinces.

Zibo and Linyi in Shandong

At the start of 2015, the ceramic tile industry runs into the worst year with full inventory and poor sales, which becomes a normal of the industry. During the second half of 2015, news coming out continuously that some ceramic tile enterprises have stopped operation or went to bankrupt. Compared with other production regions, Zibo region bear less pressures in some aspects. For instance, except for the interior wall tile undergoing continuous sales slump, floor tiles dominated by super-flat glazed tile, super crystal tile and diamond-glazed tile are still taking the lead in industrial race. As a result, many industrial insiders believe that it is the floor tiles, dominated by super crystal and diamond-glazed tile, that are currently saving Zibo’s tile ceramic tile enterprises.

Zibo: 80 lines closed

Since the middle of 2015, ceramic tile enterprises, whose lines were dominated by interior wall tiles, decided to shut down one or several lines in advance to cope with the sale pressure caused by excessive inventory. Afterwards, with the continuous downturn in ceramic tile market, some rustic tile production lines were also forced to shut down or reduce production.

So far, this means that a total of 80 lines have closed in Zibo, most of which are interior wall tile lines. Most interior wall tile enterprises just open only one line, and some enterprises stopped the interior wall tile lines, yet no enterprise stops production or shut down all kilns.

There are two to three months away from annual shutdown of kilns for maintenance. Many industrial insiders believe that due to the current serious situation, enterprises with excessive inventory may stop productions in advance. It is estimated that from mid-November this year, some enterprises in Zibo region may enter maintenance state in advance. Interior wall tile will be the product with the earliest

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and largest shutdown in comparison with other products.

Meanwhile, many local salesmen said that at present, ceramic tile enterprises shall adjust production plan timely in light of the current situation. Turning excessive inventory into cash flow is top priority, rather than continuing death struggle. Enterprises shall get rid of existing inventory by adjusting capacity, through which to provide security for production recovery on time next year.

This year, with the increasing inventory, “warehouse crisis” occurred in Zibo. As most ceramic tile enterprises’ warehouse capacity cannot meet increasing productivity, many enterprises gradually turn to rent warehouses, leading to the saying that “warehouse renting is the best business in Zibo this year.”

According to many local insiders, with the rapid development of new emerging production regions, contradiction of production and marketing derived from production line with large capacity gradually turns up. In addition, for the whole depressed industry this year, many ceramic tile enterprises nearby heavily shocked Zibo’s ceramic tile enterprises with products by much lower cost and make the sales of Zibo products even worse. As a traditional old production region, Zibo has its mature side and also has its one side hard to choose.

Zibo’s ceramic tile enterprises have a great advantage of easy transformation for the small size, which is very important under the current downturn. Firstly, although most enterprises of interior wall tile are faced with increasing sales pressure, floor tiles, dominated by super crystal and diamond-glazed tiles in Zibo, begin to take a lead in the industry, with Zibo ceramic tile enterprises walking in the forefront of the industry in terms of innovative development.

Secondly, ceramic tile enterprises are so flexible that they can make an immediate response to market changes by shutting down some production lines or cutting down output to relieve inventory pressure under current downturn. What’s more, as a traditional production region, most enterprises in Zibo have abundant financial reserves

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Analysis: Tiles

and barely no bank loans, which is a great advantage compared with other enterprises depending on bank loans to construct plants.

Therefore, with rich cash flow, Zibo’s ceramic tile enterprises can get on well with suppliers and maintain regular production.

On the other hand, the innovative capability of ceramic tile enterprises in Zibo is rapidly promoted, highlighting their advantages. Since 2014, depending on the innovation and research of floor tiles such as super-flat glazed tile and super crystal tiles products, influence of Zibo products has been further improved, creating a great number of well-known enterprises, such as Jingqili Ceramics, Jinyi Ceramics, Osman Ceramics and Zhilian Ceramics et al. In particular, under the current depression sales of interior wall tiles, floor tile enterprises in Zibo take a lead in the industry, which further consolidates Zibo’s industrial status.

Under the current situation, the ceramic tile enterprises with lack of competence should be forced to exit from the stage, through which to provide a favorable opportunity for enterprises seeking for expansive development. Wang Duo, general manager of Zibo Xinbo Ceramics said that they are very confident about the market outlook, whose continuous development will proceed together with many other outstanding ceramic tile enterprises through a tortuous journey.

Linyi: 7 lines closed; slight recovery

Based on a survey on the current production and sales of ceramic tiles in Linyi region through multi-sources. It is said by insiders that compared with those in the other production regions, the production and sales in Linyi are good this year, and most enterprises achieved a production and sales flourishing, with enterprises moving step by step especially in terms of products R&D, personnel introduction and new products development et al.

It is worth mentioning that after the Spring Festival this year, Linyi experienced the strictest environmental protection renovation this year, which forced 40 ceramic tile enterprises and 60 production lines to stop for renovation. These enterprises, investing heavily for renovation, finally managed to go through the inspection of local environment protection departments and recovered production. “Up to now, there are no enterprises in Linyi being shut down for failing to pass the environmental inspection. Besides, through the renovation, most enterprises’ environmental awareness has also shifted from passive management to initiative governance,” a person in charge of a department in Linyi said.

So far, except for only 6 or 7 lines in a shutdown state, the other some 100 lines still maintain regular production with no shutdown in the short run. It is said that except for only 6 or 7 lines in a shutdown state, over 120 lines in Linyi still keep regular production, with no enterprises’ kilns being shut down. . By convention of previous years, ceramic tile enterprises in Linyi will shut down their kilns for maintenance in early December.

However, in the recent two years, with both production and sales going well, many enterprises also maintain regular production during the Spring Festival. This was not the case in 2016, and will not likely happen in 2017 either.

It is well-known that under the influence of ceramic tile industrial context this year, many enterprises turn to reduce prices or increase promotions to cope with poor sales. According to the reporter, Linyi’s ceramic tile sales have seen a reversion since October, with inventories decreasing, while in the previous August and September, most enterprises’ inventory were increasing. Besides, Linyi’s interior

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wall tile price has also increased slightly since October, with the growth rate from 3% to 5% in different enterprises, breaking the decline of ceramic tile industry in Linyi in the past a few months.

“For example, Jiabao Ceramic is upgrading its production lines with an investment of over RMB50 million. Meanwhile, some enterprises integrate two lines into one with an investment of RMB50 million to reduce their management and production costs.

In addition, nearly 10 enterprises have invested over RMB10 million each to upgrade their kilns. Thus it can be seen that most enterprises are very confident about the future market, and making adequate preparations for the development next year,” a Linyi’s industrial insider said.

After the most strict environmental renovation year, ceramic tile enterprises in Linyi are more concerned with products R&D and personnel introduction. For instance, four ceramic tile enterprises represented by Jabest Ceramics and Shuangfu Ceramics start to construct their own research centers, recruiting many highlyeducated professionals. In the past, such phenomenon only occurred in good situations, while at present, it becomes a good opportunity to gather strength for future booming.

As a relatively mature production region, Linyi has also encountered with many different difficulties. Firstly, it still does not have a mature industrial park. Secondly, Luozhuang production region has no well-known or influential expo. Thirdly, ceramic tile enterprises are revealing a trend of polarization in Linyi.

“Outstanding enterprises get stronger and carry out national strategic layout through building brands, while inferior enterprises retire from the stage gradually,” a professional said. It is estimated that by 2017, 15 to 20 enterprises in Linyi will be superior in brand building, national layout and exports, while over 20 enterprises will be eliminated or merged.

Gao’an, Shanggao and Yifeng in Jiangxi

According to ceramic tile enterprises in Pan-Gao’an region, all of them have not yet made the plan to shut down kilns by the end of the year and some of them will decide the maintenance date in light of production and sales status at the end of December. At present, only several enterprises have stopped all production or reduced output due to poor management or excessive inventory. For instance, ORM Ceramics in Yifeng, Qingyuan Ceramics and Zhongrui Ceramics in Gao’an, a leased enterprise, are all fully shutdown.

In addition, only a few enterprises stopped production or shut down kilns due to excessive inventory, and less than 10 production lines in Pan-Gao’an region did that according to rough statistics.

Profit pressure

The production and sales of ceramic tile industry is not optimistic this year, especially during June and July, the slack season, the shutdown of kilns became more serious. However, according to the survey in Pan-Gao’an region, ceramic tile production and sales are the same with those in the same period of last year. Some enterprises’ shipments were even larger than those in last year, and the shutdown kilns were also less. During the slack season this year, about 40 production lines stopped operation in Pan-Gao’an region, taking up only 15% of Pan-Gao’an’s total lines which are over 260. In addition, most stopped operation lines in slack season had recovered production since August 2015, and only a few of them failed to resume full production due to inventory pressure.

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Analysis: Tiles

According to the information obtained from enterprises, although overall industrial production and sales are optimistic this year, the profit margin is declining, in particular, polished tile and interior wall tile producers all said that the prices are nearly equal to the costs, with some enterprises even lower, barely ensuring the flow of funds.

Wan Qiuping, general marketing manager of Jiayu Ceramics, said, “Everyone says that western roof tile business is good this year. It is true, yet it is difficult to do. Although production is balanced to sales every month, price competition is still fierce. By convention, ceramic tile market in the second half of the year is very stable. Nevertheless, contradictory to customers’ request of reducing prices, many competitors turn to rise in prices, making the business difficult to do.”

A wholesaler of “International Porcelain Capital” told our reporter, “the business was indeed very good last year, but this year it is very slack. Many wholesalers receive no orders for a day. Besides, enterprises turn to reduce prices and promote under inventory pressure, making us more difficult to do the business.”

High fund pressure, unstable production and price reduction have directly brought about the closedown of enterprises with long-term mismanagement. For instance, in Pan-Gao’an region, New Gaofeng Ceramics was merged, Yifeng government office was blockaded by suppliers of ORM Ceramics and Zhongrui Ceramics was taken over by Dongfang Wangzi Ceramics by renting. Some insiders said, “At present, although reshuffle occurs only in enterprises such as New Gaofeng and Zhongrui Ceramics, if the market continues to be sluggish, it will also occur in other enterprises in Pan-Gao’an’s region. In addition, at present, many enterprises pay suppliers of raw materials in their products instead of cash for fund shortage, which bring about great damage to enterprises and market.”

According to the reporter, after New Gaofeng was merged by Ruiyuan Ceramics, the newly established enterprise has already recovered operation in September, with both production and sales stable. Zhongrui Ceramics, which was taken over, is also under maintenance and plans to resume production this month.

Nevertheless, ORM Ceramics in Yifeng has not yet disclosed its plan of recovery since the shutdown in August.

Capacity clampdown

Fund pressures, fierce competition, unstable selling channels and insufficient innovation are the main problems that enterprises in Pan-Gaoan region confronted with, and at present, some enterprises with strong competitive strength have already took the lead to relieve current capacity and market pressures through optimizing products structure and marketing channels. Since Jingcheng Ceramics initiatively launched marble products last year, Jinsanjiao Ceramics followed up, and many other enterprises also begin to produce marble products or develop thick polished glazed and diamondglazed ceramic products this year.

Huang Chenzi, a staff of Luosifu Ceramic’s marketing department told the reporter that his enterprise had changed the previous production lines for colour-penetrated tile lines to marble tile lines, with new products being launched recently. He also said, “Besides optimizing products structure, stabilizing clients is very important.”

For the stopping production plan by the end of the year, most enterprises in the region have not yet considered, and the maintenance will be considered at least after the end of production and sales in December. Wang Beihuang, marketing director of Obama Ceramics, told the reporter, “Since May, our production and sales have been maintaining a stable growth this year. We had achieved a full balance between production and marketing by July.

Up to now, our gas station needs regular maintenance. Therefore,

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we will not make plans to shut down kilns until next January. ”

Jiajiang in Sichuan: major closures

The gloomy in “golden September and silver October” shattered the expectation of most ceramic tile entrepreneurs in Jiajiang on the ceramic tile business in the second half of 2015. By then, they were aware of the fact that the slumping sales of this year had become irreversible. Most enterprises are concerned with how to go out of crisis, which also strengthened enterprises’ resolve to stop production in advance.

Except for a sales boom at the beginning of this year, the overall ceramic tile development in Jiajiang region has appeared a continuous declining without any sign of easing up by now. Facing the ceaseless challenges from inventory emergency, fund rupture and personnel losing et al, how should ceramic tile enterprises in Jiajiang react to these difficulties? Many insiders believe that as the cold winter comes in advance, how to go through the test of cold winter is another problem that enterprises should currently continue to face.

It is said that since June 2015, a large number of production lines have been stopping operation in Jiajiang region. Afterwards, although some enterprises recovered operation, production lines were shut down all the time, which also appeared in “golden September and silver October”, known as the selling peak season, with the operating rate of 70%.

Recently, after making successive visits to including Xinchang, Ganjiang, Zhongxing and Huangtu in Jiajiang where ceramic tile enterprises are concentrated relatively, our reporter learned from many ceramic tile enterprises that most enterprises had shut down kilns ahead of schedule, with most in November and December last year. The Jiangjiang government has also been conducting new standards test on the environmental renovation of ceramic tile enterprises in the province recently, 32 enterprises have stopped some production lines for conducting environmental renovation, while another 9 enterprises, which did not conduct pollution renovation, were ordered to stop all production lines for completing environmental renovation. Therefore, in this period the operating rate of ceramic production lines is relatively lower.

After the stopping production storm, some enterprises with weak anti-pressure capability are on the brink of bankruptcy. Although enterprises including Keda Ceramics, Xinpeng Ceramics, Huayang Ceramics (Danling) and Zhongsheng Ceramics (Shawan) have not declared bankruptcy, they were termed as “high-risk” enterprises by insiders, which may declare bankruptcy at any time. It is said that as early as September 15th and October 23rd, Xinpeng Ceramics held a public auction at Leshan Zhongxin Auctions for twice. It is widely believed that it is very difficult for these “high-risk” enterprises to restore production, for which declaring bankruptcy would be the best choice.

End-year closures

Directors of several enterprises have said that the kiln shutdowns date of this year will be brought forward to the end of November and the beginning of December. The recovery time of next year will be determined by the sales performance and may not be later than those in former years probably.

“If these ceramic tile enterprises stopped production in advance, it would be more difficult for us to collect our money, a not willing to be named ink supplier hopelessly told the reporter. Owing to the poor sales of ceramic tiles in this year, many enterprises have been

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Analysis: Tiles

dragging their feet in payment, usually making a payment when they need some goods. As a result, if they shut down their kilns in advance, chasing these payments would be even harder.

Regarding to development trend of next year, some suppliers said, “At present, any business related to ceramic tile industry is difficult to do. Compared with developments of major production regions across the country, Jiajiang’s performance is relatively good, without large-scale closedowns at least. So, we are looking forward to a bright future next year.”

Shanxi, Hebei, Henan, Shaanxi, Gansu, Ningxia

From the beginning of this year, affected grievously by multiple factors, such as economic downturn, overcapacity and strict environmental protection requirements, ceramic tile industry has been suffering the cold winter, with poor sales, excessive inventory, price plunge and fund shortage, which resulted to gloomy industrial situations such as production halts, bankruptcy, containment and reorganization, being far beyond ceramic tile enterprises’ bearing capacity. Recently, the reporter made surveys on shutdown production lines in Shanxi, Hebei, Henan, Shaanxi, Gansu and Ningxia production regions, in which imbalance between production and sales was intensified and shutdowns are spreading.

According to statistics of capacity for 2015, there were 320 production lines in total in Shanxi, Hebei, Henan, Shaanxi, Gansu and Ningxia, with the daily capacity of 5.546 million square meters, taking up 8.8% and 12.3% of China total lines and capacity, respectively. It is preliminary estimated that up to now, around 50 lines stop operation, including lines unopened all year round, taking up 15% of total lines in this region.

Although faced with multiples difficulties as other production regions, there are some sales highlights in these six provinces.

“From the beginning of this year until the end of May, the sales had been booming with no sign of getting gloomy,” an enterprise director in Henan told the reporter, “However, since June the market has changed suddenly, with sale fall significantly, which resulted to an increasingly excessive inventory, with the situation becoming serious.”

From the current situation of shutdown lines, most enterprises stopped some lines for capacity reduction, except for lines unopened all year round, and all lines shutdown are uncommon.

In addition, some enterprises stopped lines for upgrading kilns or switching to other products.

It cannot be denied that since June, for multiple pressures, such as excessive inventory, fund shortage and environmental protection requirements, many ceramic tile enterprises have been forced to stop all lines. Although they have not officially declared bankruptcy it would be extraordinarily difficult for them to recover production.

For the gradual spread of lines shutdown, some directors believe that under the current situation of declining demands and overcapacity, stopping some lines for capacity reduction to further reduce operating risks is a business strategic adjustment responding to market changes, which doesn’t deserve fuss. On the other hand, some insiders believe that ceramic tile industry has entered a period of self-adjustment after rapid development. The survival of the fittest will be unavoidable. Therefore, production lines shutdown will be a regular occurrence in the years to come.

From the current states in six northern production regions, more and more production lines and enterprises will be shut down.

Except a couple of regions and enterprises, most enterprises may stop their production by the end of November or the beginning of December. Although the situation is less optimistic, the ceramic tile

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industry still expects a better future next year. Many entrepreneurs said that they will enhance competitiveness by optimizing products structure, improving products quality and further strengthening brand construction.

Sales imbalance

The most notable feature of the economic slump is the poor sales of ceramic tile enterprises. From May when the market turned gloomy, inventory has been increasing, and after a suffering period of five months, most enterprises’ inventories are still growing. Such large inventory is like a large rock, making entrepreneurs and salesmen breathless.

“Sales are too difficult to do this year and it never felt so sad,” a sales director of a ceramic enterprise in Hebei complained, “The monthly sales-output ratio could reach 80% to 90% in the previous months. However, it cannot come up to 70% currently, even lower in some months.”

However, in sharp contrast to poor sales, ceramic production capacity is grows continuously. In particular, in recent two years, a great deal of wide-body kilns have been gradually built up in He’nan, Hebei, Shaanxi and Gansu, with daily capacity of 30,000 square meters at least or 50,000 square meters at most. Some enterprises even built two lines at one time with the daily capacity as much as 60,000 to 100,000 square meters. It is not easy to digest such an enormous capacity in the current downturn.

For the large pressure of excess inventory, many new strategies have been taken to drive sales. Apart from strengthening promotion efforts, some enterprises came up with the idea of “sinking sales channels”, sending salesmen to market in tiny towns, with the slogan of developing all potential customers in a variety of ways. They even try to take business away from county dealers. Some even started a price war by constantly cutting down prices to drive sales.

Nevertheless, they all failed to achieve a perfect result.

These drastic measures have provoked much resentment of industry peers. According to some salesmen, whether taking business from county dealers or to wage a price war, it is nothing else but killing a chicken for eggs and will end up with the loss outweighing the gain. In the long term, only by constantly improving products quality and developing distinctive new products can enterprises promote their marketing competitiveness.

According to some insiders, northern ceramic tile enterprises, rather than only living by increasing production capacity and improving wholesale liquidity, shall endeavor continuously to improve the added value of products by strengthening products individualization and branding, through which to form a differentiated competitive advantage. However, if they attempt to live on small profits from low-quality products at a low price with blind imitation and following, it would only lead them to a vicious competition mess.

2016…a year of stagnation?

YIN HONG discusses the ramifactions for 2016…

The data show that China's ceramic tile production was around zero growth in 2015. The reality has told us that since the beginning of this century, 2015 is the worst situation for ceramic tile industry.

In such a background our outlook for the development of ceramic tile industry in 2016 is affected by many uncertain factors from different angles.

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Analysis: Tiles

ZIBO in focus

UNDOUBTEDLY, 2015 witnesses the gloomiest market in the history of ceramic tile industry. Like most other production regions, Zibo ceramic tile enterprises experienced competitive market environment this year as well. Throughout the year, influenced by the market, performances of Zibo ceramic tile enterprises varied. Some enterprises had good performance in production and sales while some others were forced to stop the production lines earlier for the pressure of ever growing inventory.

Compared with other production regions, however, Zibo ceramic tile enterprises were under smaller pressure. Except for the severe situation of interior wall tiles, floor tiles followed good trend this year.

Even now while many enterprises in other regions stop production, the majority of Zibo enterprises still work. “Most of Zibo ceramic enterprises have very strong capacity to resist risk “, an insider said. Zibo ceramic enterprises have been suffering from the pain of short and small production lines over recent years, but this became a main advantage of Zibo ceramic enterprises in 2015.

“Small boats turn quickly"

Short and small production lines have gradually become a powerful weapon for Zibo ceramic enterprises in recent years to cope with the fierce market competition. Strong innovation capacity and quick transferring speed has become a magic weapon for winning.

The innovation ability of Zibo ceramic enterprises was improved especially in 2015. For example, floor tiles such as super-crystal tiles and diamond-glazed tiles led the industry.

After more than 30 years' development, ceramic tile industry in Zibo today has rich categories of products covering interior wall tiles, diamond-glazed tiles, super-crystal tiles, rustic tiles, polished tiles, micro crystalline tiles and related product series. Meanwhile, Zibo production region constantly adjusted the product layout as the surrounding production regions were quickly catching up. The layout dominated by interior wall tiles, polished tiles and rustic tiles was replace by polished glazed tiles and rustic tiles, with complete supporting enterprises and related products.

As we all know, since the beginning of this year, influenced by the domestic market situation and environmental governance, the production and sales of ceramic tile enterprises in Zibo varied a lot.

Many enterprises agreed that the slack season came all of a sudden at an early time this year.

Throughout the year, June has become a significant turning point of the market situation in 2015. Except for super-crystal tiles and diamond-glazed products, which took the leading position this year, the sales of other categories dropped at different extent, including rustic tiles which became one of the unsalable products from brisk sales. Interior wall tiles were under the greatest pressure all the year. Many manufacturing enterprises had to shut down part of the production lines as early as in June in response to the market situation that continued to the end of the year.

The situation for interior wall tiles may touch the bottom. So, some of the production lines may turn to production of rustic tiles. Since the beginning of the year, interior wall tile manufacturers in Zibo have been under enormous pressure as the sales is far less than other categories. Except a few ones, the majority of interior wall tile manufacturers experienced a surge in inventory.

As it were, the interior wall tiles were under the greatest sales pressure in 2015 and Zibo production region was the worst and the sales of most enterprises touched the bottom. There is no obvious peak sales season even from March to May. In June, some

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We have reasons to believe that the development of ceramic tile industry in 2016 is the continuation of the industrial development in 2015. China's ceramic tile industry with the "new normal" experience several years of slow development, is expected to continue downward and negative growth in 2016. Most industry insiders may not be surprised if the 5 ~ 10% decline in the total output of ceramic tiles in 2016. Ceramic tile industry in 2016 is still in excess capacity and output. Market pressures force the ceramic tile enterprises to stop the kilns, reduce production and digest inventory. Some ceramic tile enterprises for which fund operation is not health, product sales is not smooth, management is not good will be closed down similar to 2015. Collapse tide may be more serious. Stability with progress will be the main theme to ceramic tile enterprises in 2016. Stabilization is good and progress is better.

The first negative growth of ceramic tile export appeared in 2014. 2015 is also the case basically. The situation for China's ceramic tile export is still not optimistic in 2016. The RMB will be a certain degree of depreciation in 2016 and it may have some role in promoting the export of ceramic tiles, but not very large.

The export volume of China's ceramic tiles has exceeded any one country's ceramic tile output. We export average unit price is lower than Italy and Spain only. China's ceramic tile exports are sieged on all sides in the world. Almost all producing countries filed antidumping proceedings on China's ceramic tile products and we are all defeated. Therefore, China's ceramic tile export in 2016 is expected to hover around zero growth.

We have reasons to believe that in 2016 the quality of ceramic tiles will continue to improve, product qualification rate is further improved, products not qualified by radioactivity test is completely eliminated, and qualification rate by state inspection is stable at over 90%. In view of the manufacturing of ceramic tiles in 2016, we will see that continuous ball milling and dry powdering get more applications, digital material distributing technology and ink jet colour-penetrating technology tend to be mature and popularization and application to increase the competitiveness and market share of polished tiles. Energy-saving and emission reduction is still the core of firing and drying technologies. With the increasing haze weather, environmental protection technology and engineering become an important part of ceramic tile industry in 2016. The main ceramic tile producing redions are facing increasingly environmental governance and operating costs for ceramic enterprises continue to increase.

With the improvement of income and living standards, brand consumption has gradually become the mainstream, ceramic tile products as well. Therefore, the various positioning brands of ceramic tiles are becoming more and more clear, say luxury brands, high-end brand, public brand, single brand, comprehensive brand, project brand, and so on. Brand concentration is gradually increasing.

Advertising investment, technological product innovation, market packaging and planning will be more and more around the brand and many of them are exploring. Marketing on project consumption will be increasing in the proportion. The sales channels are sinking further. New models of crowdfunding and partner system appear more and more. Many new brands emerge on the basis of category breakdown. 2016 is dazzling year for ceramic tile brand marketing.

Ceramic tile e-commerce and Internet house decoration gradually develop in 2016. Money burning, enterprise shuffling and growth are along with the whole development process.

2016 will be a most difficult year to ceramic tile industry, but also a year of comprehensive upgrading of industrial competitiveness.

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Analysis: Tiles

enterprises shut down some of the production lines or reduce production to gradually digest inventory.

Affected by this, as early as in early November, several interior wall tile manufacturers in Zibo made it clear that they will produce rustic tiles instead next year. Now some enterprises are transforming the production lines to ensure the normal production after the Spring Festival.

The sales of polished tiles are relatively smooth, and that of ink-jet polished tiles may grow. The number of polished tile production lines in Zibo has been reduced over the past two years. Now, there are only 6 enterprises and 8 production lines producing polished tiles. In spite of this, the sales of polished tiles in Zibo production region was relatively stable this year, but affected by the surrounding regions, the sales areas were greatly reduced.

Recently, the ink-jet polished tile has become the focus of many ceramic tile enterprises in Zibo. Besides Fanina Ceramics, which is producing ink-jet polished tiles, five enterprises represented by Osman Ceramics are actively experimenting ink-jet tiles and strive to launch their own ink-jet polished tile products next year.

Super-crystal tiles and diamond-glazed tiles are in the leading roles. At present, the sales of polished and glazed tiles like diamondglazed tiles and super-crystal tiles are still strong, and many manufacturers had good performance in production and sales. On one hand, the diamond-glazed tile is newly launched product by Zibo ceramic enterprises in June this year while not much production lines of this kind are available in surrounding production regions.

On the other hand, diamond-glazed tile has advantages with which the dealers can sell this kind more easily. Then, this tile successfully replaced super-smooth glazed tile and enabled Zibo to become the leader of polished and glazed tiles.

In the first half of the year, super-smooth glazed tiles and supercrystal tiles showed excellent market performance. Even in the slack season of June, many manufacturers had tight production schedules for orders, with products demand exceeding supply. As it were, the super-crystal tiles and diamond-glazed tiles are star products in 2015 in Zibo production region.

The market for micro crystalline tiles continues to shrink. Since 2015, impacted by the sales growth in super-crystal tiles and diamond-glazed tiles, the production line of micro crystalline tiles reduced significantly in Zibo production region, so did the product prices.

Rustic tiles went up first and then down. The sales of rustic tiles went well from March to May this year and most manufacturers were able to balance the production and sales. But from the beginning of June, except for Xinze ceramics, Minghao ceramics and a few others which could keep good sales, the sales of most rustic tile manufacturers dropped dramatically and continued to the present. Many rustic tile manufacturers reduced production to cope with the situation.

Brand building flaws

Brand building is the weak point in the development of Zibo ceramic tile industry and becomes the bottleneck restricting the development of ceramic tile enterprises in Zibo.

Enterprises in Zibo are confronted with many problems, of course

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and have large space for improvement.

According to a director of a ceramic tile enterprise who asked not to be named, ceramic enterprises in Zibo are inferior in innovative talents and marketing talents compared to the enterprises in Foshan, which is another factor restricting the rapid rise of Zibo ceramic tile brands.

Several managements of ceramic tile enterprises in Zibo said that the current competition among domestic ceramic tile enterprises is intensify, so that ceramic tile enterprises shouldn’t entirely focus on domestic market. Only domestic plus export can further reduce the risk of enterprise sales.

Not only that, as early as a few years ago, some ceramic tile enterprises in Zibo went out to other countries like Italy and Spain to participate international exhibitions.

This year, more and more enterprises in Zibo took part in the exhibitions and some even sent nearly 20 people as a team to attend the exhibitions.

“At present, there is no better solution for brand building. In terms of brand building, Zibo ceramic tile enterprises should have longterm adherence" the mentioned unnamed enterprises director told the reporter.

Green needs

At the beginning of the year, a storm of the most strict governance of environment protection in the ceramic history came to Linyi, Shandong, which also sounded the alarm to Zibo ceramic enterprises. Environmental protection should become the normal for long-term development.

With the government’s increasing efforts in environmental protection governance, not only the local government but also ceramic enterprises attach great importance to environmental protection. On 20th August, to ensure the good air quality in Beijing during the Chinese people’s 70 anniversary of the victory of AntiJapanese War and the world anti fascist war, the local government in Zhangdian District of Zibo required industrial enterprises to take measures, including suspending production for rectification, shutting down coal-fueled furnace, industrial kilns and some small businesses, emission reduction of the motor vehicles and controlling urban dust and heavy polluted weather, through which to guarantee good air quality for the activity. Therefore, 39 ceramic tile enterprises in Zhangdian District were on the list of suspended plants.

Previously, Zibo Environmental Protection Bureau had issued a document which requires since August 30th, 2015, from pm 18:00 to am 8:00 the next day, all ceramic tile enterprises should stop operation of spray dryers.

Recently, the local environmental protection department issued a notice that ceramic enterprises should install denitration equipment by the end of March, 2016. At present, many ceramic enterprises are making investigation on environmental protection management enterprises.

As it were, with the ever-increasing requirements on environment protection, ceramic tile enterprises must continue to invest on governance of eanvironmental protection. Faced with the growth in the cost, ceramic tile enterprises can only improve management to make more benefits, such as reducing production cost, enhancing product added value and improving the premium grade rate.

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Analysis: Tiles ZIBO: MANUFACTURER FOCUS Company

Tile line & capacity

Total capacity

Number of inkjet printer 2

Zibo Xuanpeng Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 6,000m2/d; 1 microcrystalline tile line: 6,000m2/d

12,000m2/d

Zibo Jiasite Ceramics Co., Ltd.

1 rustic tile line: 10,000m2/d

10,000m2/d

Zibo Wanda Building Ceramics Co., Ltd.

2 interior wall tile lines: 10,000m2/d

10,000m2/d

2

Zibo Tianjia Building Ceramics Co., Ltd.

2 interior wall tile lines: 15,000m2/d

15,000m2/d

4

Zibo Kingsway Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 18,000m2/d

18,000m2/d

2

Zibo Huayue Building Ceramics Co., Ltd.

1 rustic tile line: 12,000m2/d

12,000m2/d

1

Dongyue Sigemi Ceramics Co., Ltd.

2 fully polished glazed tile lines: 21,000m2/d

21,000m2/d

2

Zibo Hengyue Ceramics Co., Ltd.

1 fully polished glazed tile line: 11,000m2/d; 1 microcrystalline tile line: 9,000m2/d

20,000m2/d

2

Zibo Songyue Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 16,000m2/d

16,000m2/d

3

Zibo Xinyue Ceramics Co., Ltd.

2 interior wall tile lines: 17,000m2/d

17,000m2/d

4

Zibo Junlang Building Ceramics Co., Ltd.

2 interior wall tile lines: 10,000m2/d

10,000m2/d

2

Zibo Luoyi Building Ceramics Co., Ltd.

1 interior wall tile line: 11,000m2/d

11,000m2/d

2

Zibo Zhilian Building Ceramics Co., Ltd.

1 fully polished glazed tile line: 7,000m2/d; 1 microcrystalline tile line: 5,000m2/d

12,000m2/d

1

Zibo Luzhong Building Ceramics Co., Ltd.

2 interior wall tile lines: 12,000m2/d

12,000m2/d

2

Zibo Fengdu Building Ceramics Co., Ltd.

2 interior wall tile lines: 20,000m2/d

20,000m2/d

3

Zibo Jinghua Building Ceramics Co., Ltd.

1 polished tile line: 11,000m2/d

11,000m2/d

Zibo Tianchuang Ceramics Co., Ltd.

2 interior wall tile lines: 28,000m2/d

28,000m2/d

4

Zibo Chengdong Ceramics Factory

2 fully polished glazed tile lines: 15,000m2/d; 4 interior wall tile lines: 41,000m2/d; 2 microcrystalline tile lines: 11,000m2/d

67,000m2/d

8

Zibo Changhe Building Ceramics Co., Ltd.

2 interior wall tile lines: 25,000m2/d

25,000m2/d

5

Zibo Weidi Building Ceramics Co., Ltd.

1 polished tile line: 7,000m2/d

7,000m2/d

Zibo Jiayue Ceramics Co., Ltd.

2 other tile lines: 38,000m2/d

38,000m2/d

Zibo Wantong Building Ceramics Co., Ltd.

2 interior wall tile lines: 13,000m2/d

13,000m2/d

2

Zibo Taimingge Ceramics Co., Ltd.

2 interior wall tile lines: 20,000m2/d

20,000m2/d

4

Zibo Buguang Building Ceramics Factory

1 wall skirting tile line: 16,000m2/d

16,000m2/d

2

Zibo Jingqili Building Ceramics Co., Ltd.

1 fully polished glazed tile line: 7,500m2/d; 1 microcrystalline tile line: 6,500m2/d

14,000m2/d

2

Zibo Jutai Ceramics Co., Ltd.

1 interior wall tile line: 12,000m2/d

12,000m2/d

4

Zibo Tianzhirun Building Ceramics Co., Ltd.

1 interior wall tile line: 12,000m2/d

12,000m2/d

1

Zhangdian Fengquan Building Ceramics Factory

2 interior wall tile lines: 12,000m2/d

12,000m2/d

1

Zibo Junle Ceramics Co., Ltd.

1 polished tile line: 8,000m2/d

8,000m2/d

Zibo Mingjia Ceramics Co., Ltd.

2 interior wall tile lines: 27,000m2/d

27,000m2/d

4

Zibo Huaruinuo Ceramics Co., Ltd.

1 interior wall tile line: 12,000m2/d

12,000m2/d

3

Zibo Xinjingjie Ceramics Co., Ltd.

2 interior wall tile lines: 27,000m2/d

27,000m2/d

5

Zibo Kunli Ceramics Co., Ltd.

2 interior wall tile lines: 12,000m2/d

12,000m2/d

2

Zibo Zhuoyue Building Ceramics Co., Ltd.

1 plaza tile line: 8,000m2/d

8,000m2/d

Zibo Datang Ceramics Co., Ltd.

1 fully polished glazed tile line: 9,000m2/d; 1 microcrystalline tile line: 8,000m2/d

17,000m2/d

2

Zibo Qiangqiang Building Ceramics Co., Ltd.

1 interior walll tile line: 16,000m2/d; 1 fully polished glazed tile line: 12,000m2/d;

28,000m2/d

8

Zibo Ruixin Building Materials Co., Ltd.

2 other tile lines: 11,000m2/d

11,000m2/d

Zibo Rongjia Ceramics Co., Ltd.

2 interior wall tile lines: 10,000m2/d

10,000m2/d

Zibo Haojunzhe Ceramics Co., Ltd.

1 rustic tile line: 15,000m2/d

15,000m2/d

1

Zibo Jiuao Building Ceramics Co., Ltd.

1 exterior wall tile line: 12,000m2/d

12,000m2/d

1

Zibo Dongcheng Building Ceramics Co., Ltd.

2 other tile lines: 9,000m2/d

9,000m2/d

Shibo Building Materials Factory

1 other tile line: 12,000m2/d

12,000m2/d

Zibo Kaiyuan Building Ceramics Co., Ltd.

2 microcrystalline tile lines: 15,000m2/d; 1 polished crystal tile line: 4,000m2/d

19,000m2/d

4

Zibo Yuanhang Building Ceramics Co., Ltd.

1 rustic tile line: 11,000m2/d

11,000m2/d

1

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Analysis: Tiles ZIBO: MANUFACTURER FOCUS Sheci Decorative Materials Co., Ltd.

1 polished crystal tile line: 2,000m2/d

2,000m2/d

Boshan Aosen Building Ceramics Co., Ltd.

1 interior wall tile line: 11,000m2/d

11,000m2/d

Zibo Fuli Building Ceramics Co., Ltd.

1 interior wall tile line: 1,300m2/d

1,300m2/d

Zibo Chiyu Building Ceramics Co., Ltd.

3 other tile lines: 25,000m2/d

25,000m2/d

Zibo Hualiansheng Building Ceramics Co., Ltd.

3 interior wall tile lines: 21,000m2/d

21,000m2/d

Foshan Pudi Building Ceramics Co., Ltd.

1 crystal tile line: 11,000m2/d

11,000m2/d

4

Zibo Guoyuan Ceramics Co., Ltd.

1 rustic tile line: 10,000m2/d; 1 endurable tile line: 10,000m2/d

20,000m2/d

1

Shandong Yadi Building Ceramics Co., Ltd.

2 interior wall tile lines: 25,000m2/d; 1 rustic tile line: 8,000m2/d

33,000m2/d

7 1

Shandong Zhongyue Ceramics Co., Ltd.

1 fully polished glazed tile line: 10,000m2/d; 1 microcrystalline tile line: 6,000m2/d

16,000m2/d

Zibo Dongde Building Ceramics Co., Ltd.

1 polished tile line: 8,000m2/d; 1 interior wall tile line: 11,000m2/d

19,000m2/d

Zibo Fanina Ceramics Co., Ltd.

2 polished tile lines: 14,000m2/d

14,000m2/d

2

Zibo Shuaida Ceramics Co., Ltd.

1 interior wall tile line: 7,000m2/d

7,000m2/d

2

20,000m2/d

3

Zibo Zichuan Shuangying Building Ceramics Factory 2 interior wall tile lines: 20,000m2/d Zibo Shuangsheng Ceramics Co., Ltd.

1 roof tile line: 120,000pcs/d

Zibo Honggang Ceramics Co., Ltd.

2 interior wall tile lines: 16,000m2/d

120,000pcs/d 16,000m2/d

2

Shandong Guorun Ceramics Co., Ltd.

2 fully polished glazed tile lines: 20,000m2/d; 2 microcrystalline tile lines: 10,000m2/d

30,000m2/d

2

Zibo Lion King Ceramics Co., Ltd.

3 fully polished glazed tile lines: 29,000m2/d

29,000m2/d

3

Shandong Tongyi Ceramics Co., Ltd.

1 fully polished glazed tile line: 8,000m2/d; 3 rustic tile lines: 24,000m2/d

32,000m2/d

6

Zibo Qiangsaite Ceramics Co., Ltd.

3 rustic tile lines: 23,000m2/d

23,000m2/d

3

Shandong Asia Ceramics Co., Ltd.

3 interior wall tile lines: 16,000m2/d; 2 microcrystalline tile lines: 20,000m2/d

36,000m2/d

2

Zibo Yinglue Ceramics Co., Ltd.

1 polished tile line: 8,000m2/d

8,000m2/d

Zibo Golden Key Ceramics Co., Ltd.

1 rustic tile line: 10,000m2/d

10,000m2/d

Zibo Baluoke Ceramics Co., Ltd.

1 interior wall tile line: 11,000m2/d

11,000m2/d

2

Zibo Akadia Pearl Ceramics Co., Ltd.

1 porcelain panel lines: 3,500m2/d; 1 rustic tile line: 7,000m2/d

10,500m2/d

2

Zibo Jinhan Ceramics Co., Ltd.

1 rustic tile line: 9,000m2/d

9,000m2/d

1

Zibo Minghao Ceramics Co., Ltd.

2 rustic tile lines: 22,000m2/d; 3 small floor tile lines: 12,000m2/d

34,000m2/d

2

Shandong Liangjian Ceramics Co., Ltd.

2 rustic tile lines: 20,000m2/d

20,000m2/d

2

Zibo Jugang Ceramics Co., Ltd.

1 fully polished glazed tile line: 10,000m2/d

10,000m2/d

1 2

Zibo Jinka Ceramics Co., Ltd.

2 rustic tile lines: 18,000m2/d

18,000m2/d

Zibo Huaqi Building Ceramics Co., Ltd.

1 polished tile line: 13,000m2/d

13,000m2/d

Zibo Yeteng Building Ceramics Co., Ltd.

1 wall skirting tile line: 13,000m2/d

13,000m2/d

2

Zichuan Yangzhai Wanyou Building Ceramics Factory

1 interior wall tile line: 10,000m2/d

10,000m2/d

3

Zibo Jinyuan Building Ceramics Co., Ltd.

1 wall skirting tile line: 10,000m2/d

10,000m2/d

1

Guopeng Ceramics Co.,Ltd.

2 fully polished glazed tile lines: 19,000m2/d

19,000m2/d

2

Zibo Zichuan Senda Building Materials Factory

1 interior wall tile line: 8,000m2/d

8,000m2/d

Zibo Yingdemao Ceramics Co., Ltd.

2 endurable tile lines: 13,000m2/d

13,000m2/d

Zibo Yuxiang Building Ceramics Co., Ltd.

1 crystal tile line: 13,000m2/d

13,000m2/d

Zibo Oujia Ceramics Co., Ltd.

2 microcrystalline tile lines: 5,000m2/d; 1 fully polished glazed tile line: 7,000m2/d;

12,000m2/d

Zibo Huade Building Ceramics Co., Ltd.

2 other tile lines: 13,000m2/d

13,000m2/d

Golden Dunhuang Mural Art Co.

1 mural tile line: 4,000m2/d; 1 other tile line: 6,000m2/d

10,000m2/d

Zibo Ousike Ceramics Co., Ltd.

1 polished crystal tile line: 1,000m2/d

1,000m2/d

Zibo Haoyi Ceramics Co., Ltd.

1 exterior wall tile line: 8,000m2/d

8,000m2/d

Zibo Ronghetai Ceramics Co., Ltd.

2 small floor tile lines: 20,000m2/d; 1 interior wall tile line: 10,000m2/d

30,000m2/d

Zibo Dahai Building Ceramics Co., Ltd.

2 crystal tile lines: 16,000m2/d

16,000m2/d

Zibo Chuanfeng Ceramics Co., Ltd.

2 rustic tile lines: 15,000m2/d

15,000m2/d

Zibo Zhonghe Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 19,000m2/d

19,000m2/d

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2

1

2

2

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Analysis: Tiles ZIBO: MANUFACTURER FOCUS Zibo Xinglong Building Ceramics Co., Ltd.

1 polished tile line: 8,000m2/d; 1 interior wall tile line: 6,000m2/d

14,000m2/d

Zibo Zichuan Yaoxin Building Ceramics Factory

1 interior wall tile line: 7,000m2/d

7,000m2/d

Zibo Luocheng Building Ceramics Co., Ltd.

1 other tile line: 4,000m2/d

4,000m2/d

Zibo Jinyi Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 20,000m2/d; 2 interior wall tile lines: 20,000m2/d

40,000m2/d

6 1

Zichuan Panlong Building Materials Factory

1 interior wall tile line: 11,000m2/d

11,000m2/d

Zibo Hongfeng Building Ceramics Co., Ltd.

1 fully polished glazed tile line: 9,000m2/d; 1 interior wall tile line: 6,000m2/d

15,000m2/d

Zibo Luoyi Building Ceramics Co., Ltd.

1 interior wall tile line: 11,000m2/d

11,000m2/d

Zibo Luguan Building Ceramics Factory

3 plaza tile lines: 10,000m2/d

10,000m2/d

Zichuan Fagang Building Materials Factory

1 exterior wall tile line: 8,000m2/d

8,000m2/d

Zibo Fuzelin Ceramics Co., Ltd.

2 rustic tile lines: 10,000m2/d

10,000m2/d

Zibo Cailong Building Ceramics Co., Ltd.

1 wall skirting tile line: 9,000m2/d

9,000m2/d

Zichuan Shuangyue Building Ceramics Factory

1 interior wall tile line: 9,000m2/d

9,000m2/d

Zibo Zhenfa Building Materials Factroy

1 interior wall tile line: 7,000m2/d

7,000m2/d

Zibo Tongling Ceramics Co., Ltd.

1 interior wall tile line: 9,000m2/d; 1 small floor tile line: 6,000m2/d

15,000m2/d

Zibo Dingyuan Building Ceramics Factory

1 interior wall tile line: 9,000m2/d

9,000m2/d

2

2

2

Zibo Meiquan Building Ceramics Co., Ltd.

2 small floor tile lines: 30,000m2/d

30,000m2/d

2

Zibo Fulaite Building Ceramics Co., Ltd.

6 interior wall tile lines: 95,000m2/d

95,000m2/d

6

Zibo Haomen Building Ceramics Co., Ltd.

1 small floor tile line: 12,000m2/d

12,000m2/d

Zibo Tianlong Building Ceramics Co., Ltd.

1 small floor tile line: 10,000m2/d

10,000m2/d

Zibo Hengye Ceramics Co., Ltd.

1 western roof tile line: 100,000pcs/d

Zibo Dahua Ceramics Co., Ltd.

3 rustic tile lines: 24,000m2/d

1

100,000pcs/d 24,000m2/d

Zibo Qianlong Glazed Roof Tile Co., Ltd.

3 other tile lines: 24,000m2/d

24,000m2/d

Zibo Kelisite Ceramics Co., Ltd.

1 tile body line: 20,000m2/d; 1 other tile line: 5,000m2/d

25,000m2/d

Zibo Jingying Building Ceramics Co., Ltd.

2 polished tile lines: 16,000m2/d

16,000m2/d

Zibo Luhong Woersen Ceramics Co., Ltd.

1 interior wall tile line: 8,000m2/d

8,000m2/d

Zibo Weiersi Ceramics Co., Ltd.

2 other tile lines: 13,000m2/d

13,000m2/d

3

1

Zibo Gaodi Ceramics Co., Ltd.

2 polished tile lines: 20,000m2/d

20,000m2/d

1

Zibo Zichuan Xinguan Ceramics Co., Ltd.

1 other tile line: 11,000m2/d

11,000m2/d

1 2

Zibo Zichuan Senji Building Ceramics Co., Ltd.

1 interior wall tile line: 10,000m2/d

10,000m2/d

Zibo Ailijia Ceramics Co., Ltd.

2 endurable tile lines: 20,000m2/d

20,000m2/d

Foshan Weineng Ceramics Co., Ltd.

2 polished tile lines: 21,000m2/d; 1 fully polished glazed tile line: 8,000m2/d

29,000m2/d

Zichuan Saiyue Trade Co., Ltd.

1 rustic tile line: 8,000m2/d

8,000m2/d

Zibo Kaiyue Building Ceramics Co., Ltd.

1 interior wall tile line: 16,000m2/d

16,000m2/d

4

Shandong Dongpeng Ceramics Co., Ltd.

2 interior wall tile lines: 34,000m2/d

34,000m2/d

2

Zibo Huipeng Industrial & Trading Co., Ltd.

1 small floor tile line: 10,000m2/d

10,000m2/d

4

Zibo Jinshiwang Ceramics Co., Ltd.

2 rustic tile lines: 14,000m2/d

14,000m2/d

2

Zibo Shunyuan Ceramics Co., Ltd.

2 fully polished glazed tile lines: 17,000m2/d

17,000m2/d

2

Zibo Jinshun Ceramics Co., Ltd.

2 fully polished glazed tile lines: 17,000m2/d

17,000m2/d

2

Zibo Lusai Ceramics Co., Ltd.

1 rustic tile line: 10,000m2/d

10,000m2/d

1

Zibo Xinbo Ceramics Co., Ltd.

1 fully polished glazed tile line: 10,000m2/d; 2 interior wall tile lines: 10,000m2/d; 1 rustic tile line: 5,000m2/d

25,000m2/d

8

Zibo Shiwang Ceramics Co., Ltd.

1 fully polished glazed tile line: 10,000m2/d; 1 microcrystalline tile line: 7,000m2/d; 1 polished tile line: 11,000m2/d

28,000m2/d

2

Shandong Tianzhao Ceramics Co., Ltd.

1 plaza tile line: 10,000m2/d; 1 acid-proof tile line: 1,000m2/d

11,000m2/d

Zibo Zichuan Jinliang Building Ceramics Co., Ltd.

2 polished tile lines: 20,000m2/d

20,000m2/d

Zibo Haoliang Building Ceramics Co., Ltd.

1 polished tile line: 10,000m2/d

10,000m2/d

Zibo Guoliang Building Ceramics Co., Ltd.

2 polished tile lines: 10,000m2/d

10,000m2/d

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Analysis: Tiles ZIBO: MANUFACTURER FOCUS Zibo Zichuan Zhengyuan Ceramics Co., Ltd.

2 interior wall tile lines: 20,000m2/d

Zibo Yongda Ceramics Co., Ltd.

2 fully polished glazed tile lines: 13,000m2/d

Zibo Boguan Ceramics Co., Ltd.

2 chain roof tile lines: 150,000pcs/d

Zibo Guoao Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 20,000m2/d

20,000m2/d

4

13,000m2/d

2

150,000pcs/d 20,000m2/d

2 2

Zibo Zichuan Changying Ceramics Factory

1 wall skirting tile line: 3,000m2/d

3,000m2/d

Shandong Tengyue Ceramics Co., Ltd.

1 interior wall tile line: 10,000m2/d

10,000m2/d

Zibo Shunchang Ceramics Co., Ltd.

1 fully polished glazed tile line: 8,000m2/d; 1 rustic tile line: 5,000m2/d; 1 microcrystalline tile line: 8,000m2/d

21,000m2/d

7

Zibo Tengying Ceramics Co., Ltd.

2 exterior wall tile lines: 16,000m2/d

16,000m2/d

1

Zibo Zichuan Huaao Building Materials Factory

2 wall tile lines: 15,000m2/d

15,000m2/d

1 2

Zichuan Chenguang Building Materials Factory

1 wall skirting tile line: 8,000m2/d

8,000m2/d

Zibo Kelier Building Ceramics Co., Ltd.

1 interior wall tile line: 10,000m2/d

10,000m2/d

Zibo Zichuan Zhongsheng Ceramics Co., Ltd.

1 fully polished glazed tile line: 8,000m2/d; 1 microcrystalline tile line: 6,000m2/d

14,000m2/d

2

Zibo Lifeng Building Ceramics Co., Ltd.

2 rustic tile lines: 17,000m2/d

17,000m2/d

2

Zibo Qihui Building Ceramics Co., Ltd.

1 polished tile line: 7,000m2/d

7,000m2/d

1

Zibo Fengxia Ceramics Co., Ltd.

2 fully polished glazed tile lines: 23,000m2/d

23,000m2/d

2

Shandong Xincheng Building Ceramics Co., Ltd.

2 exterior wall tile lines: 17,000m2/d

17,000m2/d

2

Zibo Longde Ceramics Co., Ltd.

2 rustic tile lines: 17,000m2/d

17,000m2/d

2

Zibo Xinze Ceramics Co., Ltd.

2 fully polished glazed tile lines: 14,000m2/d

14,000m2/d

2

Zibo Biyu Building Ceramics Co., Ltd.

2 fully polished glazed tile lines: 12,000m2/d

12,000m2/d

2

Zibo Zichuan Jinyuan Building Ceramics Factory

1 wall skirting tile line: 5,000m2/d

5,000m2/d

Zibo Zichuan Bangtai Building Ceramics Factory

1 wall skirting tile line: 8,000m2/d

8,000m2/d

Zibo Bowei Ceramics Co., Ltd.

1 red body tile line: 10,000m2/d

10,000m2/d

Zibo Weida Building Ceramics Co., Ltd.

1 polished tile line: 17,000m2/d

17,000m2/d

Zibo Yuanfeng Ceramics Co., Ltd.

2 fully polished glazed tile lines: 20,000m2/d

20,000m2/d

2

Zibo Baoze Ceramics Co., Ltd.

2 interior wall tile lines: 20,000m2/d

20,000m2/d

4

Shandong Hefeng Ceramics Co., Ltd.

2 fully polished glazed tile lines: 22,000m2/d

22,000m2/d

2 1

Zibo Hongtu Building Ceramics Co., Ltd.

1 interior wall tile line: 9,000m2/d

9,000m2/d

Zibo Guoyu Ceramics Co., Ltd.

2 rustic tile lines: 15,000m2/d

15,000m2/d

Zibo Beifang Ceramics Co., Ltd.

2 rustic tile lines: 16,000m2/d

16,000m2/d

Zibo Aofeng Building Ceramics Co., Ltd.

1 small floor tile line: 9,000m2/d

9,000m2/d

Zibo Jinnuo Ceramics Co., Ltd.

2 polished tile lines: 16,000m2/d

16,000m2/d

Zibo Kejia Ceramics Co., Ltd.

2 interior wall tile lines: 19,000m2/d

19,000m2/d

Zibo Runtian Ceramics Co., Ltd.

2 exterior wall tile lines: 20,000m2/d

20,000m2/d

Zibo Xilaideng Ceramics Co., Ltd.

2 polished tile lines: 14,000m2/d

14,000m2/d

Zibo Zichuan Jinyong Building Ceramics Factory

1 wall skirting tile line: 7,000m2/d

7,000m2/d

2

2

Zibo Gelunkai Ceramics Co., Ltd.

1 interior wall tile line: 14,500m2/d

14,500m2/d

4

Zibo Hongfa Building Ceramics Co., Ltd.

2 wall skirting tile lines: 21,600m2/d

21,600m2/d

2

Zibo Shengci Ceramics Co., Ltd.

1 wall skirting tile line: 12,000m2/d

12,000m2/d

Zibo Jinghao Ceramics Co., Ltd.

2 fully polished glazed tile lines: 20,000m2/d

20,000m2/d

2

Zibo Huabang Ceramics Co., Ltd.

1 fully polished glazed tile line: 7,000m2/d

7,000m2/d

2 2

Zibo Xinguang Building Ceramics Factory

1 wall skirting tile line: 8,000m2/d

8,000m2/d

Zibo Luyue Building Ceramics Co., Ltd.

1 mural tile line: 8,000m2/d

8,000m2/d

Zibo Xumei Building Ceramics Co., Ltd.

2 interior wall tile lines: 11,800m2/d

11,800m2/d

Zichuan Yulin Building Ceramics Factory

1 wall skirting tile line: 8,000m2/d

8,000m2/d

Zibo Mingdi Building Ceramics Co., Ltd.

2 wall skirting tile lines: 16,000m2/d

16,000m2/d

2

Zichuan Jinlin Building Ceramics Factory

1 wall skirting tile line: 8,600m2/d

8,600m2/d

1

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Analysis: Tiles ZIBO: MANUFACTURER FOCUS Zibo Xinkongjian Ceramics Co., Ltd.

1 matt tile line: 5,000m2/d; 3 rustic tile lines: 30,000m2/d

35,000m2/d

Zibo Xindongyuan Ceramics Co., Ltd.

1 matt tile line: 12,000m2/d

12,000m2/d

Zibo Huaqi Ceramics Co., Ltd.

2 small floor tile lines: 14,000m2/d

14,000m2/d

Zibo Jincai Building Ceramics Factory

1 interior wall tile line: 9,500m2/d

9,500m2/d

Zibo Guanfeng Ceramics Co., Ltd.

2 polished tile lines: 14,000m2/d

14,000m2/d

Zibo Yitai Ceramics Co., Ltd.

1 polished tile line: 8,000m2/d

8,000m2/d

Zibo Xinzhonglian Ceramics Co., Ltd.

1 rustic tile line: 5,000m2/d

5,000m2/d

Shandong Gengci Group Co., Ltd.

2 polished tile lines: 30,000m2/d

30,000m2/d

3

2

Shandong Yuxi Ceramics Co., Ltd.

2 fully polished glazed tile lines: 18,000m2/d

18,000m2/d

2

Shandong Mikailiang Ceramics Co., Ltd.

2 fully polished glazed tile lines: 19,000m2/d

19,000m2/d

2 2

Shandong Qidu Ceramics Co., Ltd.

2 fully polished glazed tile lines: 22,000m2/d

22,000m2/d

Shandong Oujilide Ceramics Co., Ltd.

2 rustic tile lines: 15,000m2/d

15,000m2/d

Zibo Xuanpeng Ceramics Co., Ltd.

1 fully polished glazed tile line: 6,000m2/d; 1 rustic tile line: 6,000m2/d

12,000m2/d

Zibo Wanyue Ceramics Co., Ltd.

1 rustic tile line: 13,000m2/d

13,000m2/d

2

Zibo Huadi Ceramics Co., Ltd.

1 fully polished glazed tile line: 7,000m2/d; 1 microcrystalline tile line: 8,000m2/d

15,000m2/d

2

Zibo Longhao Ceramics Co., Ltd.

2 interior wall tile lines: 20,000m2/d

20,000m2/d

2

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63

Analysis: OEM strategy

OEM:

curse or benefit?

China assesses the power of outsource In a piece released exclusively to AC, we hear the views and opinions of some of China’s leading ceramic manufacturers, and how they are taking the idea of OEM to heart.

O

EM, the abbreviation of Original Equipment Manufacturer, is also known as designated production, whose basic concept lies in the fact that brand owners don't engage directly in production. Instead, they design and develop new products through the core technologies they have and control the market channel. They assign the manufacture to other enterprises that produce the same products through purchase contract. Then, they buyout the products they ordered and mark their own brands on the end products. This way of production is called OEM, in which manufacturers are called OEM manufacturers and products are OEM products.

The slack ceramic market from 2014 to 2015 resulted in a decline in the OEM market. Some of the OEM enterprises reduced production for the poor marketing of their own brands. On the other hand, some enterprises stopped OEM business since their products were too ordinary to compete, with orders falling. In addition, some OEM enterprises, which are unwilling to remain the bottom of the supply chain with low profits, transform to the brand development after accumulating a certain amount of channels and resources.

All these reasons raised doubts about the future of OEM industry and some insiders think OEM industry is unable to recover and will disappear gradually.

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As the Chinese saying goes: “When it is raining in the west, it may be sunny in the east,� even when the OEM market is declining, some enterprises constantly get OEM orders, with tight production arrangement. They believe that professional division of work is the trend of the industry and OEM has a bright future.

Changing times

Haosen Ceramics, that with the rapid development of Chinese economy, urbanization has been accelerated and so has the real estate industry. As an important part of the building materials family, ceramic tile industry has undergone a great progress and promotion.

The market demand for ceramic tile is beyond the expectation of ceramic enterprises and the sales volume of some enterprises are even higher than output, with some enterprises even selling some inventory. Because of the market demand, some ceramic enterprises built new production lines or designated other enterprises to produce ceramic tiles for themselves, which has made OEM become popular since then. This is the first stage of OEM development, in which enterprises with OEM demands sought OEM manufacturers spontaneously so that the OEM manufacturers are in the receiving end of orders.

In 2007, with the rocketing development of the real estate industry, there was a big rise in demand for building materials. Analogous to the household appliance industry, most ceramic enterprises which

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Analysis: OEM strategy

are private enterprises with high efficiency and flexibility in respond to the market, constructed new factories the nationwide like the blowout of a well and some enterprises with a certain scale and strength expanded and built more production lines. The increase in production lines resulted in the rapid growth of production capacity, which gradually broke the balance between supply and demand, intensifying the market competition, so that many enterprises started to think about the value of their own brands and margins. Some enterprises gave themselves a clear OEM positioning from the beginning of the plant, which is commonly seen in Shandong and Gao’an production regions, while some other enterprises, which have advantages of production but don’t have enough brand influence and sales strength, spared their partial capacity for OEM. This is the second stage of OEM development, in which the industrial division gradually became clear and enterprises set up independent OEM departments with a clear positioning.

Some enterprises practiced in OEM business with the initial intention of learning from excellent enterprises, through which learnt about control of product quality, such as smoothness, hardness and color et al, and more importantly, learnt about the R&D of customized and characteristic products. When their learning reached a certain extent where they have confidence in production and sales channels, OEM enterprises will go on the road of brand development.

In the second half of 2014, the ceramic tile market encountered its “winter” when a great number of ceramic enterprises, including OEM enterprises, were faced with a crisis created by overcapacity and product homogenization.

Industrial insiders analyzed that in the first two stages of OEM development, with favorable market conditions, problems of extensive production and ineffective management are not revealed; but in current declining market, all these problems emerged. To transform and make a breakthrough, enterprises must, on one hand, promote internal management and quality control and find out selfvalues. On the other hand, be aware of the fact that margins are the core factor for survival and sales behaviors to keep the capacity will lead to failure.

Someone believe that ceramic enterprises can only survive following the path of brand development, while OEM can only be taken as temporary transition and will disappear finally, which can be seen from the yearly decreasing of OEM enterprises in Shandong and Gao’an regions.

But Jiang Hua has a different idea towards this. He said that OEM is entering its third stage towards maturity and OEM enterprises are undergone changes. Only the fittest can survive. The number of enterprises with real consciousness, objectives and planning increased and abundant development opportunities lie in the future of OEM.

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Growing pains

A ceramic enterprise mainly worked on premium quality orders of OEM business before 2015. For the serious excess capacity of Chinese ceramic tile industry and serious shortage of market demand, a lot of OEM enterprises reduced OEM volumes and lost many premium quality OEM clients.

Under the helpless reality, the ceramic enterprise began to transform their focus slowly to their long established brands, the positioning of which were not clear, and even worse, there were overlaps in the positioning and design of several products, making it difficult to promote products in the market. Even if it is a long established brand, its popularity is still not good.

Now, the management of the enterprise decided to concentrate its resources on a relatively well-known brand, which provoked discontent from managers of the other brands, making the work of the focused brand being difficult to push forward. After the brand building was put in the schedule, the related team building, management system adjustment, sales structure construction and staff training are imminent, which is straitened for an OEM enterprise without brand promoting experience.

Similar situations are not uncommon for some OEM enterprises and some ceramic enterprises try to build brands, seeking transformation. According to Sun Xuejun, general manager of domestic marketing department of Aulos Ceramics under Foshan Toscana Industrial Materials Co., Ltd, some of OEM enterprises got fewer orders which are not enough to digest the inventory, with poor profit, so that they are going to establish their own brands. To transform and promote their own brands, OEM enterprises need

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Analysis: OEM strategy

market channels to digest their products since they can’t survive without customers or orders and under the current market situation, they need to have premium quality customer resources.

Now the market is weak, with sales of ceramic tiles declining, both enterprises who produce and sell products on their own and OEM enterprises have to face the pressure of balancing production and sales. To keep the kilns working, on one hand there is the pressure of inventory, on the other hand, they have to prepare money for workers’ wages and loan for raw materials, which result to a great shortage of capital.

OEM clients usually need to pay 30% of the purchase price as deposit and the rest 70% are borne by the OEM manufacturers.

Taking a rustic tile kiln with the daily capacity of 20,000 square meters as an example, the monthly output is 0.6 million square meters. If the unit price is RMB35 per square meter, deducting 30% of deposit, the factory has to put RMB10 million each month in producing these tiles. What’s more, if the delivery time is longer, financial pressure is even larger. Some OEM enterprises stopped production or even shut down kilns for poor sales or the heavy financial burden.

In addition, under the current market, the competition in OEM market is more intense, and some of the OEM enterprises are eliminated by the market since their products were too ordinary and there is no advantage in product quality nor in price.

Based on reasons mentioned above, some of the OEM enterprises reduced the proportion of the OEM, or simply stopped the OEM business, which led to the reduction of OEM enterprises and shrinkage in OEM sales market.

From He Zhenyu’s point of view, the general manager of Qianyi Ceramics in Sihui, two major problems OEM manufacturers confronted in the brand development are team building and shift of inventory pressure. It is reported that the price of OEM polished glazed tiles with the size of 800 x 800mm is about RMB28 per piece, but now the price is cut low because of the inability to digest inventory, with the cheapest price around RMB18 per piece.

Hence, now many sales managers quitted and started doing business themselves. They lead the sales team, cooperate with manufacturers with some deposit, and sell products just because they have the sales channels and resources.

Strengthening orders

It was once thought that the overcapacity of China’s ceramic tile industry resulted in the inability to digest their own production, forcing a small number of enterprises doing OEM. But according to He Zhenyu, it depends on the product categories. As to traditional polished glazed products, even under the influence of recent launch of the diamond-glazed tiles, the hardness of the product is increased, while the production difficulty is deduced, hence, the market shrinkage of these ordinary products is normal. However, there is an increase in OEM sales market of products like large wood look tiles with production difficulty and high tech requirements, which has a bright future in the downturn of OEM in 2015.

This year many manufacturers shut down due to market factors, backward production capacity or rumors, but the fundamental problem still lies in the management of the enterprise, the financial and inventory. However, some ceramic tile brands also realized a great growth in the slack market, which built up confidence in promoting brands.

He Zhenyu said that the positioning goal of Qianyi Ceramics is to catch up with brands like Kito, Monalisa and Dongpeng. In 2013,

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THE PRICE OF OEM POLISHED GLAZED TILES WITH THE SIZE OF 800 X 800MM IS ABOUT RMB28 PER PIECE, BUT NOW, BECAUSE OF THE INABILITY TO DIGEST INVENTORY, THE CHEAPEST PRICE IS AROUND RMB18 PER PIECE they started OEM business, while at the beginning of the enterprise, they had the intention to promote their own brand, as doing OEM business usually means being led by others, being short of initiative.

Now it is a good time to promote Qianyi brands after a few years' accumulation in spite of the impact of the recession of the market.

It is reported that Qianyi is specialized in the production of wood look tiles, which have great difficulty in the production and requires higher technology, and can be produced by a small number of enterprises only in Guangdong. At present, the maximum size is 1,000 x 200mm, and the next challenge will be 1,200 x 200mm. In other words, the key is to produce differentiated niche products.

Qianyi wood look tiles is always positioned in the style of Chinese characteristics and tradition, which also conforms to requirements of national energy saving and environmental protection, with great market response. Despite the market downturn in 2015, the total turnover of the enterprise is good for the strong support by wood look tiles.

Sun Xuejun also said that although the OEM market is not good, there’re a lot of enterprises doing OEM business. There is still a great demand in the market especially a rise in the demand of some niche products. The key is whether OEM enterprises can find their footing, which mainly contains excellent production technology and product quality, so as to attract clients.

For example, Aulos' OEM product is rustic full body tiles with good quality and affordable price, which are favored by clients so that some clients are attracted and come to them directly to place orders. On the other hand, the market share of rustic tiles is not big with less competition, and if the demand is less than 6,000 square meters, it posts small pressure on both sides. The time for delivery is short, with the longest of no more than 3 months, so that the financial pressure is in the affordable range. All these factors enabled Aulos' capital running well.

Sun Xuejun believes that ceramic tile products are developing towards refined and professional way. In the enterprises with brand strength, ordinary products will be designated to other OEM enterprises, while core products will be produced in their own factory and OEM orders are accepted as well. For many OEM enterprises, the way out is to make a certain product the finest and the best. And the transformation of OEM business next depends on the boss's own ideas.

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Analysis: OEM strategy

Jiang Hua agreed with this. To do a good job in OEM market, first of all, the boss needs a clear positioning for the enterprise, knowing what he wants, what the enterprise can do and how to do it well.

Good product is only a media, and the survival for an enterprise still depend on the top position of integrated resources, including production equipment and personnel reserves, in a certain category of products. In fact, neither production-oriented enterprises nor sales-oriented enterprises can be isolated from the issue of resource allocation, as long as enterprises can have a good management of their own resources, distributing HR, wealth and materials to their own areas of expertise and focusing on production or sales to get profit.

Haosen Ceramics set a goal of becoming an outstanding OEM enterprise in 2012 and established the OEM sector, determining to become a "Foxconn" in ceramic industry.

In 2013, Haosen introduced the world's most sophisticated kiln equipment, imported ink-jet printer and ink and cooperated with design companies in developing products so as to insist the original design. For the clear positioning, Haosen ink-jet marble tile has been recognized by the industry so that the enterprise received many OEM orders. Meanwhile, Haosen also keeps introducing technical talents, continues to maintain and improve the equipment and ensures the high quality of products. For its own brands, Haosen employs the policy of advancing side by side, limiting brands’ dependence on the enterprise within a certain range.

According to Jiang Hua’s analysis, in the face of capital shortage, if there is a unique feature of the product OEM enterprises produced, which other enterprises can't do, the enterprise holds the initiative in their own hands, having a say in the way of payment.

Subdivision and integration

OEM, as a "coexistence and win-win" development model and a market integration mode of social resources as well as a survival way for ceramic enterprises, is of strong vitality and helpful to the specialization of social division of labor. No matter which enterprise is in discussion, its capability and resources are always limited. If a big enterprise with big brand wants to expand, the best way is to integrate unused social manufacturing resources through using the sales network and brand advantage in their hands, and use these resources for their own production. Now it is the best way with minimum input and the maximum return, which is also the fastest way to expand.

OEM is conducive to the digestion of overcapacity and idle resources. OEM provides a channel for enterprises with a market advantage to make full use of these unused equipment and idle

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resources and helps to reduce the waste of social resources and makes the best use of them. For OEM enterprises, OEM is not only a way of surviving, but also a good way to learn. Ceramic tile manufacturers, on one hand, can continuously improve internal management, production technology and the quality of workers through OEM production to produce more, better and cheaper products. On the other hand, these enterprises can learn market operation management experiences from brand manufacturers, through which to improve their market development capacity and expanf rapidly.

He Zhenyu said that the ceramic tile industry will evolve into the traditional ceramic tile manufacturers vs. OEM oriented enterprises in the future. Ceramic tile enterprises should have brand awareness; otherwise it is difficult for them to undergo change radically. Meanwhile, some enterprises, with kiln production as well as their own sales channels, can naturally turn to the brand development. The better is to carry out production and implement self-marketing themselves, while the best is to find OEM. Therefore, on this basis, enterprises can be subdivided into production enterprises and salesoriented enterprises. For example, the sales-oriented enterprises can set up more offices to cooperate with local distributors and set up warehouses nationwide, and then find the local kiln factories to order a large number of OEM products. While the OEM based production enterprises certainly have some brand awareness and it is possible for them to merger some OEM sales enterprises for building their own brands.

Jiang Hua believes that after the low tide of ceramic tile industry, brand enterprises will develop rapidly, future sales concentration will increase and enterprises with different foundation will make the industrial division clearer, which is the inevitable and irreversible result of industrial division. Brand enterprises will also do some OEM business while maintaining the self-production and self-marketing.

Some other enterprises, since they don’t have powerful brands will turn to do OEM business.

As consumers’ demand for ceramic tiles always exists the ceramic tile industry has a living space all the time. To break through the bottleneck, they also need to know better about national policies and the market, through which to find their core competitiveness. The future is a highly integrated era. Unlike the household appliance industry, giant monopoly will not appear in the ceramic tile industry for its own product characteristics of geographical division. Either for OEM enterprises or other enterprises, the way out is to be concentration, professional and persistent. Achieving these three points, there is no need for enterprises to worry about their development.

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By EBI Ltd & HIMG速

Talking Shop

Talking Shop

The challenge for Morbi AC takes a look at how the maturing manufacturers of Morbi are equipping themselves for an ever-more saturated market.

If you take the NH947 or the NH8A from Ahmedabad and drive west a distance of around 250 kilometers which on a good day, with good weather and little traffic will take you approximately four hours you will arrive in Morbi, Gujarat. The drive I'm told in poor weather, a night or in bad traffic can cause extreme nervousness but on the day I made it the road was clear and the drive was rather monotonous. I would have fallen asleep. However after a few kilometers I began to notice mostly hand painted advertisements on garages, bus stops, toilets, and all manner of walls and huts.

Adverts not for fast moving consumer goods but for tiles; wall tiles, floor tiles, tile materials and tile equipment. Italian sounding brands, Indian sounding brands, Italian machinery, Chinese machinery. The hand painted ones exhibiting a certain rustic charm. The adverts only increased as we approached Morbi – eventually it seems every surface has a tile advert on it. I was only surprised the cows wandering around hadn't been decorated. As we drove into Morbi itself nearly every building or shop by the road side is a tile related business. Old brick kilns stand side by side with modern offices and show room buildings.

Looking further back from the road you can easily make out the buildings containing spray driers and then you realise that these buildings go far back on each side of the road. The younger factories further away as the industrial area grows.

If you search for Morbi 2 on Google Maps you will see an area around Lalpar

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which appears a lighter beige than the surrounding areas. Zoom in and you notice hundreds of factory buildings, you can clearly see material storage areas and warehouses and stocks of finished product. It's impressive to say the least. When you stay in a Morbi hotel it is obvious at breakfast that the guests are Chinese, Italian and Spanish mostly, indeed the hotel menu's have evolved from only offering Indian vegetarian to Chinese and continental options.

Why on earth has such a tile cluster – more a galaxy in fact grown here?

A recent surge

Though there have been traditional brick and tile factories in Morbi for years the recent history of Morbi goes back maybe only about thirty. The original kilns are now very much in the minority – that traditional business having collapsed. However the government had to encourage business in the region so gas lines were provided by the government which provided the necessary fuel to compliment the tan clays, bikaner ball clays, talcs and feldspars that are found within a radius of about 300 kilometers of Morbi and in Rajasthan.

At the same time VAT was reduced to 5% from 15% which instantly increased the market for ceramics as products were more affordable at a time when the Indian economy generally was starting to pick up. The government also subsidized capital investment which meant the tile industry could

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Talking Shop

afford up to date equipment from Europe and cheap labour was encouraged to migrate from Uttar Pradesh to compliment the local labour and also skilled staff from other industries decided it was beneficial to move into ceramics as though there is a ceramic college in Morbi there is also a wealth of experience based skills which have built up over the years. As the industry grew of course there were international companies sending in technicians and consultants which further educated the local resource. Morbi quickly grew creating lots of opportunities but there are warning signs too of what could lie ahead.

There are now over 600 wall tile factories in the area. The quality of the products, the technical performance started off very 'local' – also with regard design. But soon with the advantages mentioned above the quality soon improved so Morbi could enter export markets. However the number of tiles available meant that there were over capacity issues and prices have fallen. Buyers especially on the export side as usual push for ever lower prices so much so that the domestic market can be more attractive.

For the wall tile industry to prosper there needs to be improved marketing and greater design focus especially through better communication with foreign specialists and the needs of the different foreign markets.

As the wall tile business became saturated the vitrified tile market began to grow – there are likely over 100 vitrified tile factories now. Moving into vitrified became almost a status symbol among the tile manufacturers 'You don't have a vitrified tile factory?'

Again technology was imported from Italy and China and as the capacity increased so again the prices were put under pressure.

This forced a move to double charge tiles – using a cheaper base clay formulation with a purer, cleaner surface clay and a move from ivory colours to white and now the in demand so called 'Alaska' white.

Challenges ahead

So Morbi now faces several challenges. It has to develop the export market and particularly needs to make tiles of the latest designs suitable for the different tastes of different markets. It has to improve the infrastructure as the roads are poor (and off the main roads in wet weather are awful with a geology akin to a Martian landscape). The falling prices threaten investment in the latest technologies and equipment thus threatening the evolution and efficiency in the industry. On the other hand there are equally advantages. There is an increasing number of very skilled and experienced technicians. The government still subsidies the region and the industry and the size and growth of 'tile' has meant the local materials industry has grown and young people are encouraged to get into the ceramic industry. I would add to there is a very 'can-do' attitude apparent and a refreshing lack of time wasting and hierarchy within the factories. You can see multiple factories in a day and there is a punctuality and brevity that other countries could well learn from.

I spoke at some length with Mr. Vishal or Korb, a company established only in 2012 who already have an agency agreement with Tecnoferrari. Korb provide the spare parts and service for all the Tecnoferrari digital printing machines in India – nearly 80 machines so far and the fact this has grown so quickly confirms the way that digital printing has dominated decoration, '99% digital

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THERE IS A VERY 'CAN-DO' ATTITUDE APPARENT AND A REFRESHING LACK OF TIME WASTING AND HIERARCHY WITHIN THE FACTORIES now' says Mr Vishal – but also the aggressive way the industry has grown and been open to innovation and development. Korb stress the importance of service in an industry that can't afford down time – Morbi manufacturers expect 24 hour service now and it is still almost incestuous in the close relationships that exist. Is everyone a member of the Patel family? Vishal laughs – 'Certainly we can say we are all the same religion! If you do not give service very promptly everyone will know and if you give someone a different price everyone will know! Like the other companies Korb are looking to evolve quickly – to stay still in only one product area – say spare parts is not sustainable. So we have to look at cooperating with suppliers from Germany, Spain and Turkey also not just China and Italy; we have to look at materials not just equipment and we need to supply to over 150 local customers already; we are considering exporting as well.'

All this sounds very optimistic a growing industry and labour force, more product lines and innovations supported by local exhibitions and international companies moving into the area.

But there are issues – over capacity and falling prices decimated Foshan – Morbi could face a similar issue. Payment concerns mean international suppliers do not like to offer credit lines; even the 'big family' with its supportive relationships will struggle to juggle all these demands.

But for now it seems encouraging – India is growing and there is a clear desire to make better products that are more desirable and marketable – not just cheaper. That could well be the advantage Morbi needs in the future.

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Advertiser feature

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With a yearly output of 9.2 billion square metres of tiles and 173 million pieces of ceramic sanitaryware, the Chinese market plays a pivotal role in the growth and development prospects of the world’s major technology providers. These include the Sacmi Group, which will be exhibiting at the 2016 edition of Ceramics China, the international exhibition that – from 27 to 30 May 2016 at the Guangzhou trade fair district - will showcase the best ceramics and whiteware technology.

Taking part in the fair with its own stand of nearly 500 m2 – hall 3.1, n° C228 – the Sacmi Group has decades of experience on this market and two local branches, Sacmi Nanhai and Sacmi Changshu. The former is a produc-tion site dedicated to the design and marketing of machines and kilns/dryers configured to suit the needs of Chi-nese producers and represents a key reference point offering comprehensive and efficient after-sales service.

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Together with Sacmi Nanhai stands Sacmi Changshu: the latter is located at the centre of one of the largest in-dustrial areas in the country, in the province of Jiangsu. With its 6,000

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m2 and 50 employees, Sacmi Changshu is largely dedicated to the manufacture of sanitaryware and technical ceramic kilns, offering high efficiency solu-tions developed by Riedhammer, the Sacmi Group company that is the undisputed global leader in the produc-tion of high efficiency ceramic sanitaryware and technical ceramic kilns. The latest solutions developed by Sacmi Changsu for technical ceramics are closely in line with the development outlook of local industry, which is steadily shifting production, year by year, towards higher-end solutions and products for both the local market and exportation throughout South-East Asia.

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To highlight this point, at Ceramics China 2016 Sacmi will display a module of the XXL385 single-layer kiln, an “extra-large” model with a depth of no less than 3850 mm, capable of firing a significantly higher number of tiles than kilns of equal size currently on the market.

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The Sacmi Group’s presence at the fair is extremely significant, then, highlighting the growing number of pro-jects – both completed and in progress – in both the Tiles and Whiteware sectors.

AC 16-4

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73

Insight

BRAZIL Leading unglazed tile import sources (2015, sq metres)

Total unglazed tile imports (sq metres)

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Leading glazed tile import sources (2015, sq metres)

Total glazed tile imports (sq metres)

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Leading sanitaryware import sources (2015, no. pieces)

Total sanitaryware imports (no. pieces)

Unglazed tile imports from China (2015, sq metres)

Unglazed tile imports from India (2015, sq metres)

Sanitaryware exports (no. pieces)

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Glazed tile exports (sq metres)

AC 16-4

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61 75

Hunter and the hunted

Incredible Indian Ceramics?

Dear Diary,

that I had not visited Indian Ceramics...

It was getting rather embarrassing to have to admit shows took the time to personally invite first the of one ever. Not even when an organizer for adopter or one of the vanguard that me. No, there is no way I can claim that I was an early I had avoided going and there was inertia to created or attended the first shows. On the contrary that business interests have kept me helped overcome to make the decision to attend. It hasn't other colleagues have fostered Indian that nor ent Contin in East Asia rather than the Indian Sub business. all over the world since the 1990's But why – having visited various exhibitions pretty much ted me to attend and what left me promp ally did I have it in for Indian Ceramics and what eventu feeling pleasantly surprised? my long held view that there are too My reticence to attend or exhibit comes primarily from ed – at least as far as the customers I many low value exhibitions that are often poorly target exhibition costs can be very high – not that er need to meet and spend time with. I also consid of travel and entertainment , hotels and terms in simply but just in terms of the booth or display better used in directly targeting customers flights. I've often wondered if this spend wouldn't be e suppliers. Let's face it, as we've discussed or using other methods to search for and find reliabl possible suppliers in a few minutes from of before – we can use the internet to search scores of stomach upsets or poor road journeys. either risk no the comfort of an arm chair which carries t ourselves it's just that I think caution is Which isn't to say I don't attend exhibitions or exhibi pay and put on good quality shows. advised and that exhibition organisers should earn their d, too big or just badly organized. focuse poorly Which isn't always the case with too many being of lack of effort by organizers se becau not – tion reputa a Indian Ceramics also had a bit of se of the inherent difficulties in blazing a trail into the 'new' market in Gujarat but becau have a mature exhibition culture or the putting on a good performance in an area that didn't infrastructure to support it. to make do with tents set up in Earlier shows, going back ten years struggled with having I'm assured it was not – what with no the grounds of a country club, which sounds grand but for everyone to use – with associated air conditioning and only a corrugated iron toilet shed foreigners explaining how their timid from hellish mess and smell. Of course there were stories the inherent difficulty of obtaining worse and food the from digestion systems suffered terribly adequate supplies of alcohol in a dry state. a point this show can't be ignored But steadily things have got progressively better to such g out. You may already be late to missin be well and if you aren't at least visiting then you could

the party. were being built late into the night, Exhibitors still spoke of astonishment that whilst stands certainly busy; I can vouch for that. So what everything was ready just in time and the show was get? you do you get at Indian Ceramics and what don't sity exhibition location in Ahmedabad.

The current show covers two halls at the Gujarat univer but that helps as it Its not the most modern exhibition structure in the world March hovers about 30oC doesn't dwarf the show. Whilst the temperature during ioned. Just as well given condit air the humidity is low and the halls are adequately exhibitors? Obviously the But there. was I the show was always pretty full whilst

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

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25 th International exhibition of technology and supplies for the ceramic and brick industries

The future of ceramics

26 -30 SEPTEMBER 2016 RIMINI - ITALY th

Organized by

In cooperation with

With the support of

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Hunter and the hunted

Chinese apparently a close second – but there is a preponderance of Indian exhibitors with the companies; some that will not attend tional interna and l the are a good proportion of multinationa happy to attend India Ceramics. There China Ceramics because of its unequal fee policy are products needed are covered, but not are national and international companies too so most personal massage devices and there are s, being so huge it does not have stands selling drone a single negative comment about hear didn't I about. no touts offering useless tat wandering is rather a relaxed atmosphere. No grim security either. All of that's quite refreshing and there every inch of floor space within a day. faces passing the half way mark as they attempt to cover of course digital printing never and ials Exhibitors are split between machinery and mater is certainly predominately show the But ent. equipm ying mind conveying, packing and classif g well behind. This is no surprise with the a TILE show with sanitaryware and tableware runnin ption?) being but four hours drive away Morbi tile cluster ( is 'Morbi tile galaxy' a better descri er that suppliers to the tableware howev with its 700+ tile manufacturers. This does mean dropped out after exhibiting in have some indeed ty, industry are very much in the minori previous years. a few stands appeared to be very basic Another issue that was surprising was that more than at every exhibition; I always feel shows no or rushed with quite sparse displays. There are brochure sat on the table in front of a maybe with stand though for that person sat on an empty customs or such like. In this case though them because their materials never made it through only at the last minute – or had used the the exhibitors explained they had decided to exhibit how good the show would be; a mistake red bare minimum staff and expenditure as they wonde exhibitors were already making plans for they would not make in future. Pretty obviously then next year. a good mix of product and nationalities.

So all in all the exhibitors were quite a high standard, isers, have you not caught on yet just organ tion Negatives – the refreshment area (note to exhibi is shared over a decent beverage how much business is getting done and how much gossip people clearly had their own cars or had in a comfortable, quiet location?) and transport. Most was haggling with the tuk tuks and taxis – arranged mini buses or hotel pick ups. The alternate irritation if you are on business. A well run an of colourful and fun if you are on vacation but a bit around exhibition halls. taxi stand is a wonderful sight after a day schlepping ic area in India and whilst it is mostly ceram g growin a still is Morbi Impressive stuff then. es. Given there is always a finite limit about tile there are tableware and sanitaryware factori growing and more affluent middle a with t on how many tiles are needed even in a marke can transfer between products I'd skills and logies techno class, and that ceramic materials, of relevance it could possibly surpass imagine that Indian Ceramics will grow further. In terms and seems stuck in a rut and the Chinese China Ceramics which whilst huge has lacked focus rs to have grasped the mettle and the appea ics economy is certainly struggling. Indian Ceram always the most efficient was certainly not whilst ss busine more direct 'can-do' attitude of Indian a refreshing change. vanguard for clearing the way and I guess I'll have to consider exhibiting – thanks to the show. ant helping build this improving and increasingly import

Until next time Your humble servant William Hunter

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

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