The ceramic tile sector

The ceramic sector remains decidedly lively. 2007 is expected to show a further increase in local production, albeit at a slower pace than in the previous two years.
The market is forecast to exceed 170 million sq.m. in 2007, with domestic production of about 125 million sq.m. before rising to 200 million sq.m. in 2009, with annual increases of around 10-15 million sq.m..

Start-ups of new plants have been announced for 2008 too, while the entry into the market of new foreign players has also been confirmed. Cersanit has acquired a local manufacturer and Lasselsberger is building a facility at Ufa, the capital of the Autonomous Republic of Bashkiria (Bashkortostan). The Turkish multinational, Vitra, is also planning to open a factory. Foreign shopping sprees also snatched up the young sanitaryware manufacturer, Della, which was acquired in June 2007 by the multinational giant, Sanitec.

Gradual increases in production costs, the need for ongoing investment to keep up with changing demands, and growing competition, are rapidly changing the business landscape. The big groups are acquiring local companies and are generally increasing their size. Kerama Marazzi, Stroyifarfor and Keramin are all stepping up their output, which already stood at over 20 million sq.m. per year, with investments aimed at raising capacity to between 30 and 35 million sq.m. per year, according to a model that is also gaining ground in other east European countries (first and foremost Poland, with Cersanit and Paradyz). Local producers now manufacture a full range of product types (Keramin's offering even includes sanitaryware) and Kerama Marazzi handles distribution too. The Italian multinational now owns 120 showrooms and is planning to open a series of mega-showrooms in key urban locations.

It is estimated that these generalists, as well as Estima, a specialist in technical porcelain tile, will soon come into direct competition with a significant slice of the import market, thus gradually eroding foreign market share, which is increasingly confined to the elite segment.
Even 2007 does not seem to have been a vintage year for Italian and Spanish exports. Average selling prices are up, but volumes remain close to 2006 levels, with Spanish volumes remaining almost twice those of Italy. As a whole, Italian and Spanish im

ports are still falling short of the 20 million sq.m. mark (15.7 in 2006 and perhaps 17 in 2007).
Chinese exports, by contrast, are expected to rise, with particular reference to polished products for the contract sector, and could reach 20 million sq.m. by 2009.
Poland is also setting its sights on the Russian market (Cersanit is building a plant in Ukraine too) and its export share looks destined to rise.

As for the types of product manufactured locally, red-body floor and wall tiles are now accompanied by white-body and porcelain tile. The availability of high-quality technical materials is on the increase, with factories dedicated entirely to these products (Estima, Kerama Marazzi, Atlas Concorde), and so too is output of polished materials. Meanwhile, sizes are continuing to grow, thanks in part to the opening of new facilities equipped with the latest Italian production technology.