Confidentially /

Analysis of Ukrainian
Ceramic Tile, Sanitary Ware and Natural Building Stone market
2011-2012

Report on research results
for Ukrainian Association of Ceramics

May 2012

Contact person: Anastasiya Shurenkova,

B2B and Strategic Research Department

34 Lesi Ukrainki blvd, off. 601

Tel.: +380 44230-0260

Fax: +380 44230-0262

E-mail:

Contents

Summary 4

1. Market of ceramic tile 6

1.1 Import of ceramic tile 6

1.1.1 Ceramic tile import dynamics 6

1.1.2 Product types 6

1.1.3 Ceramic tile import structure by regions 7

1.1.4 Major ceramic tile suppliers abroad 10

1.1.5 Major countries-importers to Ukraine 13

1.2 Tile export 16

1.2.1 Tile export in dynamics 16

1.2.2 Product type 16

1.2.3 Tile export regional structure 16

1.2.4 Major countries-recipients 17

1.2.5 1.2.5 Major tile manufacturers-exporters 19

1.3 Production 21

1.3.1 Tile production in dynamics 21

1.3.2 Major manufacturers 22

2. Sanitary ware market 23

2.1 Import 23

2.1.1 Sanitary ware import dynamics и 23

2.1.2 Product types 23

2.1.3 Regional structure of sanitary ware import 24

2.1.4 Major suppliers of sanitary ware abroad 26

2.1.5 Major companies-importers to Ukraine 30

2.2 Sanitary ware export 33

2.2.1 Sanitary ware export dynamics 33

2.2.2 Product types 34

2.2.3 Sanitary ware export structure by regions 34

2.2.4 Major countries-recipients 35

2.2.5 Major sanitary ware manufacturers-exporters 37

2.3 Production 39

3. Market of natural building stone 41

3.1 Import 41

3.1.1 Building stone import in dynamics 41

3.1.2 Product types 41

3.1.3 Building stone import structure by regions 41

3.1.4 Major suppliers of building stone abroad 44

3.1.5 Major companies-importers to Ukraine 46

3.2 Building stone export 49

3.2.1 Building stone export in dynamics 49

3.2.2 Product types 49

3.2.3 Regional structure of building stone export 50

3.2.4 Major countries-recipients 50

3.2.5 Major building stone manufacturers-exporters 52

3.3 Production 54

3.3.1 Building stone production dynamics 54

3.3.2 Major manufacturers 54

Appendix 1. 56

Appendix 2. 59

Appendix 3. 62

Appendix 4. 63

Appendix 5. 65

Appendix 6. 67

Appendix 7. 69

Appendix 8. 71

Appendix 9. 73

Summary

The survey studies the following product groups:

§  Ceramic tile;

§  Sanitary ware;

§  Natural building stone.

Ceramic tile[1]

The market of ceramic tile retains its positive dynamics in 2011. Import volume almost doubled while export volume increased even more and reached nearly 70% compared to 2010. Growth of production in 2011 was not as rapid as export- and import increase still there was no decline in production volume.

In 2011 indicators of tile export and production exceeded volumes of successful 2008 year and only import has not fully recovered after the crisis. In general, growth of ceramic tile import and export in Ukraine was higher than growth recorded for the foreign trade overall.

Stone ware ceramic tile considerably enlarged its share in the import structure thus exceeding supply of clay grazed tile. Analyzing ceramic tile dynamics by countries, the survey finds growth of import volumes from China.

Sanitary ware

Sanitary ware segment rose up in all directions: import, export, production. Even despite of slow growth of sanitary ware market, export was up by 88% that is almost 3 times higher than overall export growth throughout Ukraine.

The import market sees increase in ceramic sanitary ware supply volumes. China still leads when studying sanitary ware dynamics by regions. In 2011 year supply fragmentation intensified as quantity of suppliers to Ukraine grew whereas leaders’ shares decreased. The research reveals certain concentration of importers – private entrepreneurs moved down from 1st to 4th place among recipients in Ukraine.

The share of Cersanit Polish Company, the last year’s leader, decreased in the export of Ukrainian sanitary ware products that resulted in drop of the ceramic sanitary ware in overall export structure.

Building stone

The market of building stone managed slight growth in 2011. Growth of import volumes was higher than growth of export and production thereby exceeding the level of pre-crisis 2008 year.

The share of leading products – marble and granite – increased in the import structure therefore displacing limestone and slate. As for regions, the share of Italy rose allowing the country to win the first place by supply in money terms.

Export volume in 2011 was up by 19%. This indicator is lower than the overall export growth (35%) still the volume of exported stone exceeded measures of pre-crisis 2008 year. The share of gabbro and labradorite in the export structure increased. Speaking about countries, Italy pushed Poland aside by moving up to the third place.

1.  Market of ceramic tile

1.1  Import of ceramic tile

1.1.1  Ceramic tile import dynamics

After crisis fall by 63% in 2009, in 2011 the market of imported ceramic tile shows positive trends. Total ceramic tile import to Ukraine rose by 21% in 2010 year and by 69% in 2011 year having nearly reached the level of 2007. This increase seems to be higher than overall growth throughout Ukraine (36%) that means the market tends to reach the pre-crisis level. Import drop in 2011 was 24% compared to pre-crisis 2008 year.

Chart 1.   Ceramic tile import dynamics
mln $

1.1.2  Product types

In 2011 for the first time in many years grazed stoneware tile makes up the main share in tile import with 59% import share (the share of clay grazed tile, last year’s leader, amounted to 32%).

The share of ungrazed tile of “conventional” and stoneware ceramic in 2011 remained at the level of 2010 with 2% and 3% respectively

Chart 2.   Tile import structure, %, mln $

In 2011 year clay tile import produced some slow growth both in the segment of grazed and ungrazed tiles.

Stoneware ceramic tile import increased more than twice compared to year 2010 and pre-crisis 2008 year that no other tile type has managed to achieve.

Chart 3.   Clay tile import dynamics, mln $

Chart 4.   Stoneware ceramic tile import dynamics, mln $

1.1.3  Ceramic tile import structure by regions

Most ceramic tile (more than 90%) is imported to Ukraine from 10 countries. In 2011 last years’ leaders – Poland, Spain and Russia - yielded to China which share has doubled since 2010 and now amounts to almost quarter of total tile import volume.

Generally, the market of tile import is characterized by high regional concentration with 4 countries-leaders importing 76% of tile altogether, while the top ten countries – about 97%.

Table 1.   Countries-suppliers, %, mln
2010 / 2011 / 2012
Country / Share / Country / Share / Country / Share
Poland / 23.6% / China / 24.9% / China / 29.4%
Spain / 17.4% / Poland / 21.9% / Poland / 24.0%
Russia / 15.3% / Spain / 18.0% / Spain / 14.6%
China / 11.8% / Russia / 10.7% / Russia / 7.5%
Belarus / 10.9% / Belarus / 6.5% / Belarus / 6.6%
Italy / 7.5% / Italy / 6.4% / Turkey / 6.6%
New Zealand / 3.8% / Turkey / 4.3% / Italy / 4.6%
Turkey / 2.5% / Germany / 1.6% / Czech Republic / 1.6%
Czech Republic / 1.7% / Czech Republic / 1.3% / Germany / 1.1%
Germany / 1.2% / New Zealand / 1.0% / Estonia / 0.8%

Different countries specialize in import of different types of tile, still stoneware grazed tile makes up the highest share in total tile supply. Stoneware ceramic tile is imported mainly from China and Spain whereas clay tile – from Poland, Belarus and Italy.

China increased share of “Gres” grazed tile by 32 p.p., Poland – by 12 p.p., Spain – by 13 p.p. Poland still keeps the lead in import of clay ungrazed tile.

Chart 5.   Tile import structure by countries in 2011,
%, mln $

Clay ceramic tile

As usually Poland leads in supply of clay ceramic tile with 85% share of ungrazed tile import and 37% share in grazed tile import volume.

Belarus weakened its positions in import of clay grazed tile cutting import share by 7 p.p. to 12%. The share of Spain on the contrary increased by 2 p.p.

Chart 6.   Clay grazed tile: import structure by countries in 2011, %, mln $

Chart 7.   Clay ungrazed tile: import structure by countries in 2011, %, mln $

Stoneware ceramic tile

As for “Gres” tile, Spain yielded leadership to China by losing 4 p.p. in import share compared to 2010 year. Following Spain, on the third place was Poland with 13% share. Russia moved down from the second place in 2010 to the fifth place in 2011 as its share fell twice to 9%.

Chart 8.   Grazed tile “Gres” import structure by countries in 2011, %, mln $

Ungrazed “Gres” tile is imported mainly from China. Besides, Poland and Italy have significant share in “Gres” import. The share of Russia dropped twice here as well as in stoneware ceramic tile import.

Chart 9.   Ungrazed tile “Gres” import structure by countries in 2011, %, mln $

1.1.4  Major ceramic tile suppliers abroad

China

Chinese manufacturers are undoubted leaders by quantity of companies importing tile in Ukraine and their number is increasing year by year. In 2012 a number of importers from China increased more than twice compared to previous year and amounts to 484 companies.

China market is highly fragmented – the top 5 companies cover only 17% of total supply volume.

Table 2.   Major ceramic tile suppliers from China
Name / Share of import from China ($)
FOSHAN JUNJING INDUSTRIAL CO.,LTD. / 4.6%
TANGSHAN IMEX INDUSTRIAL CO.,LTD. / 4.2%
LOUIS VALENTINO INVESTMENT AND DEVELOPMENT CO.,LTD / 3.5%
GUANGDONG NANHAI LIGHT INDUSTRIAL PRODUCTS IMP&EXP. CO.LTD. / 2.5%
FOSHAN OCEANO CERAMICS CO.,LTD / 2.5%
YIWU HENGDA IMPORT & EXPORT TRADINGCO., LTD. / 1.9%
LONG LINK TRADING LTD. / 1.7%
VANSA LIMITED / 1.6%
ZHEJIANG MINTAI INDUSTRIAL CO.,LTD / 1.5%
FOSHAN DIHAI TRADING DEVELOPMENT CO., LTD / 1.5%
FOSHAN SINCERE BUILDING MATERIALS CO.,LTD. / 1.4%
Others (473 suppliers) / 73.1%

Poland

Supply from Poland is carried out mainly through 2 companies: Ceramika Paradyz and Opoczno S.A. Cersanit S.A. dropped down from the third place in 2010 to the seventh place among tile importers in 2011.

The top three leaders cover more than 50% of tile import to Ukraine. In total, 42 Polish companies supplied tile to Ukraine in 2011.

Table 3.   Major suppliers from Poland
Name / Share of import from Poland ($)
CERAMIKA PARADYZ Sp.z.o.o / 32.7%
OPOCZNO Trade Sp. z.o.o. / 17.7%
COTTO PETRUS Sp. z.o.o. / 7.3%
"Paradyz"Spolka z.o.o / 6.4%
CERRAD Sp. z.o.o. / 6.3%
CERAMIKA GRES S.A. / 5.5%
CERSANIT S.A. / 4.4%
Others (35 suppliers) / 19.8%

Spain

In 2011 market of Spanish import tile became more concentrated with two leaders controlling half of total supply.

The share of CIFRE S.L., last years’ leader, this year amounted to less than 1%. The first place was taken by AZULEJOS SATIN, S.L., which managed to increase its share by 31 p.p.

89 companies import tile from Spain.

Table 4.   Major suppliers from Spain
Name / Share of import from Spain ($)
AZULEJOS SATIN, S.L. / 36.8%
FORWARDING TOTAL / 13.5%
PERONDA CERAMICAS, S.A. / 5.8%
APE CERAMICA, S.L. / 4.7%
VENIS S.A. / 4.3%
CERAMICAS APARICI S.A. / 2.8%
AZULEV, S.A. / 2.3%
BALDOCER CERAMICAS, S.A. / 1.8%
HATZ SPAIN, S.A. (VENUS CERAMICA), S.A. / 1.8%
Verdan Alliance Ltd / 1.6%
PAMESA CERAMICA, S.A. / 1.6%
Others (78 suppliers) / 22.9%

Russia

The leader among Russian importers in 2009-2010 years Cerama Export LTD retains the first place in 2011 with only slight decrease in share by 5 p.p.

The market of ceramic tile import from Russia is quite concentrated – in 2011 year 16 companies imported tile from Russia.

Table 5.   Major suppliers from Russia
Name / Share of import from Russia ($)
OOO "Kerama Eksport" / 72.0%
ZAO "Velor" / 7.0%
ZAO Keramogranitnyj Zavod / 5.7%
OOO LB Keramiks / 4.0%
OOO RеjlЕkspeditor / 4.0%
OAO NEFRIT-KERAMIKA / 2.8%
Others (10 suppliers) / 4.4%

Belarus

In 2011 supply volumes of leading company Berezastroymaterialy OAO dropped by 8 p.p. to 32% along with increase in the share of Ceramin OAO by 8 p.p. to 60%.

Table 6.   Major suppliers from Belarus
Name / Share of import from Belarus ($)
OAO Berezastrojmaterialy / 60.5%
OAO Keramin / 32.1%
OAO Brestskij kombinat stroitel'nyh materialov / 7.4%

Italy

In spite of slight drop in market share, Cooperativa Ceramica D'Imola, the leader in tile supply from Italy, retained its leading positions in 2011 year leaving the nearest competitor behind with 3.3 times lower market share. Generally, the top four importers control about 35% of total supply.

Today 106 companies import tile from Italy.

Table 7.   Major suppliers from Italy
Name / Share of import from Italy ($)
COOPERATIVA CERAMICA D'IMOLA, SRL / 20.2%
NOVABELL S.p.a. CERAMICHE ITALIANE / 6.6%
Ceramiche Atlas Concorde S.P.A. / 4.3%
CASALGRANDE PADANA S.P.A. / 4.0%
IMPRONTA ITALGRANITI INDUSTRIE CERAMICHE S.P.A. / 3.7%
FORTUNA ASSOCIATION LIMITED / 3.7%
CERAMICHE MARCA CORONA S.P.A. / 3.1%
DELTA NOVEL SRL / 3.1%
Tergestea Transport Branch SRL / 2.9%
Others (97 suppliers) / 48.4%

1.1.5  Major countries-importers to Ukraine

There are several hundred Ukrainian companies-recipients; among them Kray Cerama ZAO, Agros OOO and Agromat OOO are the biggest (21% altogether). Kray Cerama deals mainly with tile from Russia, Agros – from Spain and China while Agromat supply tile mostly from Italy, Spain and Russia.

Cersanit Invest, one of last years’ leaders in tile supply from Poland (fourth place in 2010), in 2011 took only the seventh place.

Table 8.   Major companies-importers to Ukraine, 2011
Name / Share of the total volume (100% in a column) / Import share by country (100% in a row)
China / Poland / Spain / Russia / Belarus / Italy
ZAO Kraj Kerama / 8.6% / - / - / - / 99% / - / 0.6%
OOO Agros / 6.5% / 46% / - / 50% / - / - / 1%
OOO PTK AGROMAT / 5.8% / 0.6% / 0.1% / 36% / 16% / - / 44%
WAIS PLUS OOO / 5.7% / 90% / - / 0.1% / - / - / 0.1%
ChP Kosmoledo / 5.0% / 96% / - / - / - / - / -
ChP Sandis / 5.0% / 90% / 0.1% / - / 0.2% / - / 1%
OOO Cersanit Invest / 4.8% / - / 100% / - / - / - / -
ChP Termteh / 4.8% / - / 100% / - / - / - / -
OOO Bestajl / 3.7% / 3% / - / 69% / - / - / 7%

China