CERAMIC INDUSTRIES

CERAMIC INDUSTRIES

Leading the way in cost and quality for ceramics and sanitaryware www.ceramic.co.za

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Sub-Saharan Africa continues to provide growth potential for Ceramic Industries, with a continued strong demand for tiling, sanitaryware and other bathroom items Writer: Emily Jarvis Project Manager: James Mitchell

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n 2012, Ceramic Industries proudly celebrated its 20th anniversary since listing on the Johannesburg Stock Exchange, benefiting from raising capital and increased awareness of the company and its reputation.

By trading publically, the Group was able to attract a selection of potential companies when in its early stages. Two decades on and with a strong presence in the market, Ceramic Industries drew interest from Italtile Limited, who

has now acquired a strategic stake in the company, along with its probable delisting. This has allowed Ceramic Industries to focus on its long term vision to serve the customer as one of the leading low-cost manufacturers and suppliers of ceramic tiles and sanitaryware in South Africa. “I am confident that the business will retain the best of its characteristics and benefit from the revised structure,� said Giovanni Ravazzotti, Non-Executive Chairman of Ceramic Industries in a company statement.

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SA’s manufacturing trends

South Africa’s manufacturing sector was the third largest contributor to the nation’s economy in 2013, accounting for 15.2 percent of the GDP. The industry has a diversified offering and has shown its resilience and potential to compete in the global economy.

Ceramic Industries plays a key role in this, as the company prides itself on being an internationally competitive manufacturer of ceramics that ensures customer expectations are exceeded in all facets including quality, timely delivery and friendly staff.

“The trading environment has remained extremely competitive, fuelled by price-sensitive consumers,” commented Ravazzotti.

Another key trend experienced by the Group in recent years has been continued strong demand for tiles and sanitaryware, particularly in underserviced rural and outlying areas.

“In line with international trends, consumers have gravitated towards larger format wall and floor tiles and high-value bathroom accessory sets.

“Our customers are increasingly seeking convenient and intuitive solutions to their purchasing decisions.

We are mindful that this demand will be best satisfied by providing

SUNNY PACKS

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unny Packs Manufacturing is one of South Africa’s leading corrugated board and carton manufacturers and received the PMR Africa Diamond Award for Best Packaging Supplier in South Africa in 2013.

Sunny Packs is ISO 9001:2008 certified and our range of services include making cardboard sheets, printing, flat and rotary die cutting & carton erecting, as well as stereo manufacturing.

We strive to deliver innovative, custom made, quality corrugated products on time and in full to all our customers, ensuring that the company prospers through impeccable service and customer satisfaction.

Playing a key role in SA’s manufacturing sector

T +27 11 878 5920 E sales@sunnypacks.com

www.sunnypacks.com

AMSERVE CHEMICALS

The people of Ceramic have worked extremely hard under testing conditions, and I would like to express my gratitude to them for their continued service to the Group

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n today’s tough and fast changing business environment, we believe at Amserve that it is essential to not only be a dependable Supplier but to also be constantly looking at ways and means that could assist our Customers production or market position, in any small or big way that we can - and then the stronger we also become. When you then add the old fashioned values that still permeate though out Ceramic Industries, you have the pleasure of working in a solid partnership to drive forward with – Andrew Wilmot.

T +27 11 465 0018 E info@amserve.co.za

www.amservegroup.com

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Sunny Packs

We are very proud of our long association as a Supplier of Performance Chemistry to Ceramic Industries, who we especially congratulate on their many years of continued growth, expansion and solid investment in manufacturing and skills in Southern Africa.

“Global Strengths, Working Locally” www.amservegroup.com

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Factories

combined tile and sanitaryware solutions, which is a key focus area of the Group’s product development programme going forward,” stated Ravazzotti.

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Tile factories in South Africa Sanitaryware factory in South Africa Acrylic bath factory in South Africa

ATHLONE EXTRUSIONS LTD

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stablished for over 40 years Athlone Extrusions is one of the world’s leading producers of extruded thermoplastic sheet and film products for supply to the thermoforming, fabrication, printing and furniture sectors.

Using state-of-the-art extrusion technologies, and aided by our unique in-house colouring and compounding capabilities, it allows us to provide an extensive portfolio of sheet and film products for use across a range of diverse industries and applications: • Sanitary ware

Tile factory in Australia

• Automotive (including off-road vehicles) • Medical and food packaging • Construction • Leisure (caravan/camper vans) • Point-of-sale display • Furniture

Tile and sanitaryware facilities

Consisting of four tile factories, one sanitaryware factory (Betta) and one acrylic bath factory in South Africa (Aquarius), as well as one tile factory in Australia (Centaurus), Ceramic Industries enjoy several regional and international partnerships that complement the company’s vision and goals.

Betta Sanitaryware is the dominant supplier of sanitaryware in SubSaharan Africa, with close to 50 percent market share in the region.

The factory is highly automated and makes use of the high pressure casting methodology, which contributes to a reduced wastage factor and consistency in casting.

The four South African tile factories (Samca Floor, Samca Wall, Vitro and Pegasus) manufacture a combination of pressed and extruded tiles in various sizes, textures and finishes. Moreover, Aquarius bath factory manufactures a comprehensive range of baths and

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The highly automated factory uses the high pressure casting methodology

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…. one of the world’s leading producers of extruded thermoplastic sheet and film products Head Office / Ireland Athlone Extrusions Limited Grace Road, Athlone, Co. Westmeath, Ireland.

Tel: +353 90 6492679 Fax: +353 90 6494086

United Kingdom Athlone Extrusions UK Limited Equipoint, Coventry Road, Birmingham B25 8AD, England.

Tel: +44 121 7644848 Fax: +44 121 7644443

e-mail: info@athloneextrusions.ie shower trays, catering for all sectors including both local and European markets.

Pegasus is a state of the art factory, utilising the latest proven technology to manufacture red body, pressed floor tiles. The factory manufactures different sizes of glazed tiles in a range of finishes, profiles and textures and has the capacity to produce and distribute 50,000m2 of tiles per day.

“Pegasus is strategically positioned to serve the emerging and SubSaharan Africa markets as well as providing a very important import replacement service to the local consumer,” said the company.

Ravazzotti highlighted the importance of suppliers, partners and stakeholders to the success of each of these key business areas: “The relationships we share with our stakeholders underpin the continued existence of this business.

“Our customers in wholesale and

The Netherlands Athlone Extrusions Schouburgring 85, 5038 TK, Tilburg, The Netherlands.

Tel: +31 13 5447265 Fax. +31 13 5442747

website: www.athloneextrusions.ie

TRIANGLE BEARINGS Established 1988

Servicing your Industry with Excellence

Our stock holding caters for all our customer’s bearings, seals, power transmission, gearbox, motors and engineering service needs.

Vereeniging branch T: 016 455 5012 E: sales2@trianglebearings.co.za 3 De Villiers Avenue, Vereeniging

www.trianglebearings.co.za

Ballito Branch T: 032 526 37 27 E: david@trianglbearings.co.za No 3 and 4 kudu park, imbonini park, shakas head, ballito

24 HOURS SERVICE 365 DAYS

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Ceramic Industries acknowledges partnerships are a vital part of company success

merchants have continued to support us in a very competitive environment and we thank them for recognising our efforts to deliver the highest quality offering at the best price. The vital partnerships we enjoy with our suppliers and service providers are acknowledged and appreciated.”

Investing in the business

A key focus for Ceramic Industries has always been retaining and growing management talent and developing expertise across the whole Group.

Each year, the company invest millions of rand in training which complements the goal to balance satisfying the customer needs with profitability of the business and creating wealth for all of its stakeholders.

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Sub-Saharan Africa continues to provide growth potential for the Group, with strong demand experienced for Ceramic’s offering

“In 2011 for example, R186 million was paid to employees through salaries, benefits and incentives, which in turn enabled them to support their families and contribute to the economic activity of their communities and the broader economy,” the statement said. “The people of Ceramic have worked extremely hard under testing conditions, and I would like to express my gratitude to them for their continued service to the Group.”

Accompanying this focus on people development is a responsible attitude towards the environment. The Group is mindful that its operational activities, which include quarrying for clay, could potentially have a harmful impact on the environment.

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“It is therefore a high priority for the long-term sustainability of the business to mitigate any such effects at every possible opportunity and we do so via various initiatives including our involvement with the environmental forum,” said Ravazzotti.

The Group implements an energy management plan to reduce its carbon footprint through the relentless monitoring and management of consumption of resources including gas, fuel, clay, water and glaze.

“We have started to manufacture thinner tiles at Vitro, Samca Wall and Floor and Centaurus, which is just one example of our commitment to environmental issues. This innovation has the dual benefit of reducing consumption of clay, glaze, electricity, fuel for transport and packaging, as well as reduced emissions,” said the company.

Steady development

The manufacturing sector remains steady in general as a key contributor to the South African economy, and Ceramic Industries hope to capitalise on opportunities within the current environment as Ravazzotti further expanded in a statement: “There are early signs of increased volumes out of our tile factories, therefore our priority focus will be on continuing to drive our efficiencies and enhance the Group’s product range to meet demand in terms of volume and quality.

“Sub-Saharan Africa continues to provide growth potential for the Group, with strong demand experienced for Ceramic’s offering.

To capitalise on this opportunity, our strategy will be to retain and expand existing contracts while also sourcing new markets.

“We will continue to recognise our strengths as leaders in the industry and acknowledge our weaknesses, striving to convert them into strengths,” he concluded.

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Moving forward, the company strategy will be to retain and expand existing contracts, while also sourcing new markets

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CERAMIC INDUSTRIES Farm 2, Old Potchefstroom Road, Vereeniging, Gauteng, South Africa Tel: +27 16 930 3600 Fax: +27 16 930 3803 Email: info@ceramic.co.za

www.ceramic.co.za