Floor & Wall Tiles

Exports of floor and wall tiles from China are expanding fast. In spite of increasing production costs and shortages of materials, exports rose 32% in the first 11 months of 2004.

Manufacturers in this mature, highly competitive industry are trying to sustain such strong export growth, particularly by improving quality and keeping prices affordable.

With profiles of 90 suppliers, this China Sourcing Report will show you how to profit from China's expanding supply-market activity.

At your fingertips, you'll have the facts you need to benchmark current suppliers and shortlist potential new ones. You'll also benefit from an industry overview, practical price guides and more.

What you'll get

Deep profiles of 20 leading suppliers that offer details on manufacturing capabilities, quality controls, future development plans and more. Based on personal factory tours and interviews with senior managers, this information is available nowhere else

Profile tables of 70 additional suppliers, with key information such as production capacities, output ratios, export capabilities and main machinery installed

A Product Gallery featuring 185 of the most popular export tiles, with top-line specifications and full-color pictures

The results of Global Sources' latest supplier survey, summarizing price, product, production and R&D trends for the next 12 months

This report covers: ceramic tiles, plastic tiles, stone tiles, wood and bamboo flooring

How you'll benefit

Find out why ceramic tiles made in China match or surpass the quality of Europe-made tiles

Learn what steps suppliers are taking to improve the quality of their products

Discover the latest trends in floor- and wall-tile designs before your competitors do

Get updates on developments in China's main manufacturing hubs for ceramic, plastic, wood and stone tiles

Executive summary

China exported US$1.4 billion worth of floor and wall tiles in the 11-month period covering January to November 2004. This was a 27 percent increase over the US$1.1 billion worth of outbound shipments generated in the whole of 2003.

However, rising production costs and a shortage of raw materials have forced most tile makers to raise prices by as much as 50 percent. More adjustments are forecast if the situation does not improve. The supplier base might also shrink as small makers, incapable of dealing with soaring production costs, close down. This may result in a slowdown of exports for 2005.

The following are some of the key trends we see in China's floor and wall tiles export industry:

• Suppliers will be increasing investments to upgrade equipment and technology. Advanced machinery will help streamline the manufacturing process and save on production costs, consequently minimizing the effects of rising overall operational costs.

• Ceramic tiles will continue to dominate international shipments in the next 12 months as makers revitalize the line with products that are more durable and more attractive.

• R&D efforts will mainly focus on the use of environment-friendly materials such as non-radioactive glazes and coatings with low emissions of volatile organic compounds (VOC). Surface designs will resemble natural wood and stone in texture and appearance, as this "look" is popular in overseas markets.

This report covers floor and wall tiles made of ceramic, plastic, wood and stone—the four major materials China suppliers use in tile production. Ceramic tiles are the most widely produced type and account for more than half of total exports.

The Products & Prices section of the report discusses the main features of each tile type and gives price projections for the next 12 months.

The Materials & Components module details the sources of raw materials and the effects of rising raw material costs on product prices. Product development and design efforts are discussed in detail in the R&D section.

Close to 8,000 suppliers in China specialize exclusively in manufacturing of ceramic, plastic and wood tiles. In contrast, stone tile makers offer tiles as part of an extensive selection of stone products. Their product lines also include slabs, sculptures, curbstones and vanity tops.

The majority of the supplier base is privately owned. The 90 suppliers featured in this report reflect this industry breakdown: 69 percent are private, while 19 percent are foreign-invested.

Some of the largest tile makers in China are profiled in this report. For example, Guangdong New Pearl is the largest supplier in Foshan, the leading production hub for ceramic tiles. The company produces 3.5 million square meters of tiles monthly.

Guangdong Dongpeng has a monthly output of 2.5 million square meters. It was one of the first ceramic tile makers to be certified to ISO 9001 and ISO 9002.

Industry overview

Exports of floor and wall tiles from China are on an upswing. In the midst of increasing production and freight costs, power shortages and an inadequate supply of raw materials, exports rose 27 percent in the 11 months to November 2004 to reach US$1.4 billion up from US$1.1 billion in the whole of 2003.

Makers in this mature and highly competitive industry are trying to sustain strong export growth, particularly by improving quality and keeping prices at affordable levels. There are, however, several obstacles that may slow down exports, especially of plastic, wood and stone tiles.

Freight costs have gone up in the past year as a result of soaring oil prices. Higher freight expenses are a particular concern for suppliers that import their raw materials. Some makers import wood from South America, Southeast Asia and Africa.

Makers that purchase raw materials domestically are also feeling the effects of higher oil prices, especially after the China government implemented stricter regulations in 2004 on the transport of materials. These regulations prohibited the overloading of delivery trucks, forcing raw-material suppliers to make twice as many deliveries.

In addition, the government has imposed policies that limit logging and quarrying in China. As a result, suppliers are facing a shortage of domestically sourced materials that is pushing up the cost of wooden tiles by 5 to 10 percent this year and stone tiles by 10 to 15 percent.

Rising oil prices also have a direct effect on plastic tiles. Since PVC is a petroleum by-product, its costs have soared 50 percent. Plasticizers and fillers now cost 20 percent more and suppliers forecast plastic tile prices will go up by 20 to 50 percent this year.

Some small tile makers in key production hubs have already closed down; a trend that is expected to continue as suppliers deal with rising operational and production costs. The power shortage, which first hit China in 2003, is still affecting the industry.

Ceramic tile exports on the upswing
China is already the world's number one producer of ceramic tiles, turning out 60 percent of global output. The construction boom in the country has most makers targeting the domestic market and shipping only 10 to 20 percent of output overseas. But with the advent of government-implemented regulations in 2004 to slow down construction, exports grown in importance. Shipments soared 43 percent from $544 million in 2003 to $777 million from January tp November 2004.

Samples of supplier profile

Best Cheer Stone Group
Ten years after it was established in 1994, Best Cheer is now China's largest supplier of stoneware. Running at full capacity, it produced 3 million square meters of stone slabs and tiles worth $135 million in 2004. Best Cheer claims to the second largest stoneware supplier in the world.

The company's holdings include 12 quarries (two of which are located in the United States), five production facilities, six domestic subsidiaries and four overseas offices. Two of its production facilities are joint ventures: Rongcheng Best Cheer Granite Co. Ltd. in Shandong province and Best Cheer Stone Works Co. Ltd. in Fujian province.

About half of the company's total output is exported to over 50 countries and regions, with Japan and the US as the main markets. OEM orders make up 20 percent of exports.

Products
Best Cheer markets more than 1,000 types of granite and marble products, including blocks, slabs, tiles, cut-to-size stones, paving stones and mosaics. Their selection also includes fireplaces, vanity tops, stone sculptures and other decorative items. Marble and granite tiles and slabs account for 60 percent of output while decorative items make up 30 percent. Outdoor furniture accounts for the rest.

The company's stone products are available in the Peach Red, Isola Red, Jolly Red, Leopard, Tomson Red, Xili Red, Maple Red, Bella White, Padang Light, Sunset Gold, Tomson Blue, Sesame Black, Ice Blue and Solar White series.

Best Cheer imports about 80 percent of its marble from Brazil, South Africa, the US and the Middle East, while the rest comes from its own mines.

Rising material costs pushed prices up by 10 percent in 2004 to an average US$25 per square meter.

Manufacturing
Best Cheer's five production facilities in China are located in Rongcheng (Shandong province); Shanghai, Shenzhen and Dongguan (Guangdong province); and Xiamen (Fujian province).

Marble products are made mainly in Shenzhen and Shanghai while the Xiamen, Dongguan and Rongcheng facilities focus on granite items.

The Shenzhen factory has a floor area of 75,000sqm that is equipped with three diamond gangsaws, two polishing lines, a tile-gluing line, six four-axis wire shaping machines, a six-axis wire shaping machine and several polishing and cutting machines. The annual capacity of this facility alone is 300,000sqm of marble slabs and tiles, 120,000sqm of mosaic tiles and 18,000 sets of fireplaces.

Best Cheer owns a formidable range of manufacturing equipment in its combined facilities, 39 granite gangsaws, 10 marble diamond gangsaws that can process 100,000sqm of marble slabs, and eight polishing machines with a capacity of 300,000sqm of marble or granite slabs.

All of Best Cheer's tile production lines are imported from Italy. Each can process 30,000sqm of stone tiles at once. Other equipment includes 12 four-axis wire shaping sets, two water sprays, nine flaming equipment, a water reamer, 18 electronic bridge cutters, 24 automatic shaping machines, two Fischer Bolt hole machines, two PC machines, 50 circular saws, a computerized Hetero-column lathe machine and a computerized working-center machine.

Sample of product gallery

Ceramic tiles Eagle Brand Product type: Porcelain tile Model: Super stone VCB8334 Minimum order: None Packaging type: Carton Delivery time: 15 days Indicated price: . Description: Durable, wear-resistant, waterproof; polished, matte and rough finish; measures 300x300, 300x600, 400x400 400x800, 600x600 and 800x800mm

And more... To see the full Executive Summary order now .

Global Sources Industry-specific China Sourcing Reports

All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.

If you'd like to order the China Sourcing Reports, please go to Global Sources website - http://www.globalsources.com, or click here. It is simply and convenient.