Analysis for ceramic tiles and sanitary ware market of Ukraine
in 2002-2005
Research results report
for Association of Producers, Exporters and Importers
of ceramics
March 2005
Contact person: Anastasia Shurenkova
senior researcher, В2В and services research department
Lesi Ukrainki Avenue, 34, 01133 Kiev
Tel.: +380 44230-0260
Fax: +380 44230-0262
E-mail:
Content
Content 2
Summary 4
1. Import 5
1.1. Import structure according to the product types 5
1.1.1. Ceramic tiles 6
1.2. Regional import structure 9
1.2.1. The biggest supplying countries 9
1.2.2. Ceramic tiles 10
1.2.3. Sanitary ware 12
1.3. The biggest tiles exporters to Ukraine 13
1.3.1. Belarus 13
1.3.2. Poland 13
1.3.3. Spain 14
1.3.4. Russia 14
1.3.5. USA 15
1.3.6. China 15
1.3.7. Turkey 16
1.3.8. Italy 16
1.4. The biggest importing companies in Ukraine 17
1.4.1 Belarus 17
1.4.2 Poland 18
1.4.3 Spain 18
1.4.4 Russia 18
1.4.5 USA 19
1.4.6 China 19
1.4.7 Turkey 19
1.4.8 Italy 20
2. Export 21
2.1. Export structure by types of products 21
2.1.1. Sanitary ware 22
2.2. Regional export structure 23
2.3. The biggest importers from Ukraine 23
2.3.1. Russia (import from Ukraine) 23
2.3.2. Belarus (import from Ukraine) 24
2.3.3. Kazakhstan (import from Ukraine) 24
2.3.4. Moldova (import from Ukraine) 24
2.4. The biggest producing exporters 25
2.4.1. Russia 25
2.4.2. Belarus 25
2.4.3. Kazakhstan 26
2.4.4. Moldova 26
3. Production 27
3.1. Wall tiles 27
3.1.1. Production dynamics 27
2.1.1. The biggest manufacturers 27
3.2. Sanitary ware 28
3.2.1. Production dynamics 28
3.2.2. The biggest manufacturers 28
Methodology 29
Appendix 1. TOP 100 importers 30
Appendix 2. Exporting companies rating 33
Appendix 3. Primary product import 35
Appendix 4. Primary product export 37
Summary
This report is an upgraded version of the last year report about ceramic tiles and sanitary ware market in 2002-2004 and January-May 2005 in Ukraine. The mistakes of the last report have been corrected here; we have changed the tile import classification and corrected the volumes of tiles and sanitary ware manufacturing.
Ceramic tile and sanitary ware market showed positive growth in 2002-2004. The most appreciable growth both in export/import volume and domestic output was in 2004. Import volume tripled and output volume doubled. We consider the construction boom in Ukraine to be a reason for this growth.
In 2005 ceramic tiles and sanitary ware market (and total Ukraine economics) showed economic stagnation tendency, or at least growth rate reduction.
In 2005 market growth rate was only 17%, mainly because of the import growth (39%).
In accordance with our estimation, the ceramic tile and sanitary ware market growth in 2006 will be hardly less than 15-20% in monetary equivalent. At the same time, the import volume growth will be 25-30% in monetary equivalent.
The end of political instable period that is expected after parliament elections should have a positive impact on domestic manufacture. First of all, it will impact on the biggest enterprises controlled by foreign investors (Kharkiv keramika Ltd., Zeus Keramika CC, Piastrella-K Ltd.)
If foreign companies will consider the situation in Ukraine as attractive for investment we can expect for even greater market growth due to domestic manufacture development. Zeus Keramika CC has already proclaimed ambitious projects of stoneware manufacture expansion.
1. Import
Ukraine actively imports ceramic tiles and sanitary ware from all over the world. Volumes of imported products steadily increase from year to year (Diagram 1)[1].
A significant increase of import volume took place in 2004 – comparing with 2003 the import products volume increased more than three times. In 2005 the rate of change wend down – import growth was 38% in monetary equivalent and 25% in natural equivalent. When it is considered continued building boom, the rate of change will hardly come down over below 25-30% in monetary equivalent in 2006.
Diagram 1. Import Dynamics[2]Million UAH
Source: State Customs Service of Ukraine
1.1. Import structure according to the product types
We analyzed import data according to the following types of imported products:
§ Ceramic tiles
§ Mosaics, stained-glass windows
§ Building glass blocks
§ Sanitary ware
Ceramic tiles have been staying the main imported product on the researched market during 2002-2005. Moreover, their quota in general import volume increased rapidly in 2004 comparing with 2003 - more than 20 pp of general import volume (Diagrams 2-3). In 2005 a tendency of ceramic tile predominance over other product types was strengthened (83%). The second place was occupied by sanitary ware (13%) in 2004-2005. And the quota of mosaics and stained-glass windows, according to the information from State Customs Service of Ukraine, decreased five times in 2004 (from 27% to 5,5%) and continued decreasing in 2005 (1%) (Diagrams 4-5).
Diagram 2. Import structure in 2002Source: State Customs Service of Ukraine / Diagram 3. Import structure in 2003
Source: State Customs Service of Ukraine
Diagram 4. Import Structure in 2004
Source: State Customs Service of Ukraine / Diagram 5. Import structure 2005
Source: State Customs Service of Ukraine
1.1.1. Ceramic tiles
Import volume increase, which took place in 2004, occurred mostly due to precisely ceramic tiles import growth. In absolute figures ceramic tiles import increased more than four times from 75 million Ukrainian hryvnas (UAH) to 313 million UAH (Diagram 6).
Diagram 6. Ceramic tile import dynamicsMillion UAH
Source: State Customs Service of Ukraine
In 2005 tiles import volume increased at 39% to 434 Million. UAH
Imported ceramic tiles can be divided into several groups:
§ Conventional (clay) ceramic tiles, glazed
§ Conventional (clay) ceramic tiles, unglazed
§ Stoneware ceramic tiles[3], glazed
§ Stoneware ceramic tiles, unglazed
§ Facade tiles (conventional and stoneware ceramics, glass)
§ Decors, friezes, borders
§ Others (samples, semi-manufactured articles, etc)
Traditional clay glazed tiles are gradually loosing its positions under the pressure of other products. First of all, they are stoneware ceramic tiles. Their quota in general tiles import volume increased from 8% in 2002 to 22% in 2005 (Diagrams 7-10).
Diagram 7. Tiles import structure in 2002Source: State Customs Service of Ukraine / Diagram 8. Tile import structure in 2003
Source: State Customs Service of Ukraine
Diagram 9. Tiles import structure in 2003
Source: State Customs Service of Ukraine / Diagram 10. Tiles import structure in 2005
Source: State Customs Service of Ukraine
The glazed and unglazed tiles have been permanently at a ratio of two to one during 2002-2004. In 2005 the unglazed tiles share sharply fell to 8% (Diagram 11).
The quota of stoneware ceramics in total import volume has been also increasing in 2002-2005.
If in 2002-2003 the total quota of stoneware tiles (glazed and unglazed) made 8-9%, this quota increased to 14% in 2004 and to 22% in 2005. The quotas of glazed tiles in stoneware ceramics are smaller than those of unglazed one although the quota of stone glazed tiles is growing steadily (Diagram 12.).
Diagram 11. Clay tiles imports dynamicsMillion UAH
Source: State Customs Service of Ukraine / Diagram 12. Stoneware tiles imports dynamics
Million UAH
Source: State Customs Service of Ukraine
1.1.2. Sanitary Ware.
Imports growth of sanitary ware is mainly related to the growth of import volume as a whole (Diagram 13). The sanitary ware quota in total import volume has not changed, practically, in 2002-2004 and it averages at 10-12%. In 2005 the sanitary ware quota increased to 14% in general import value.
Diagram 13. Sanitary ware imports dynamicsMillion UAH
Source: State Customs Service of Ukraine
1.2. Regional import structure
1.2.1. The biggest supplying countries
8 leading states have been making 80-85% of the tiles and sanitary ware import to Ukraine in 2003-2005 (hereinafter are called G8); this situation remains the same by nowadays (Table 1).
These countries are Belarus, Poland, Spain, Russia, the USA, Turkey, China and Italy. At the same time, market shares of Belarus and Poland increased considerably in 2005 (23% and 18% respectively) comparing with 2002 (14% and 10%).
The share of Spanish products, on the contrary, went down to 9% in 2005 from 19% in 2003.
Table 1. Supplying countries, 2003-20052003 / 2004 / 2005
Country / Share / Country / Share / Country / Share
Spain / 19% / Belarus / 17% / Belarus / 23%
Belarus / 14% / Poland / 16% / Poland / 18%
Russia / 10% / Spain / 12% / Spain / 10%
Poland / 10% / USA / 9% / Russia / 9%
USA / 8% / Russia / 8% / USA / 8%
Turkey / 8% / Turkey / 7% / China / 8%
China / 7% / China / 6% / Turkey / 6%
Lithuania / 5% / Italy / 5% / Italy / 4%
Italy / 5% / Czech / 4% / Czech / 3%
Czech / 4% / Germany / 3% / Great Britain / 2%
Germany / 3% / Slovakia / 2% / Germany / 2%
Source: State Customs Service of Ukraine
The diagram hereunder shows import structure in the context of leading states (Diagram 14).
It is clear that the most of the quantity of ceramic tiles is imported from Belarus and Poland. Sanitary ware leading suppliers are China and the USA.
Source: State Customs Service of Ukraine
1.2.2. Ceramic tiles
Different countries are specialized in supplies of different types of tiles (Diagram 15). The following diagrams have been made on the basis of data received from customs statistics for 2005. Glazed conventional tiles make the core of the import from Belarus, Spain, Russia and Turkey. Unglazed tiles make the core of Chinese import. The stoneware tiles make the core of Polish import.
Diagram 15. Import structure of different types of tiles in G8Source: State Customs Service of Ukraine
1.2.2.1. Tiles made of clay ceramics
The biggest variety of suppliers is noticeable in a large segment of clay-glazed tiles. Tiles of this kind were imported to Ukraine from 35 countries in 2005. Belarus claims to become a leader with a share of 32. In general, states from G8 cover more than 90% of glazed conventional tiles import (Diagram16).
As regards the unglazed conventional tiles, China (26%) and Poland (20%) are the leaders. Here we can see countries that are specialized in this tiles segment, in particular, and they are not members of G8, e.g. Czech (14%) (Diagram 17). In total, supplies of non-glazed tiles are realized by 25 states.
Diagram 16. Glazed conventional tiles import structureSource: State Customs Service of Ukraine / Diagram 17. Unglazed conventional tiles import structure
Source: State Customs Service of Ukraine
1.2.2.2. Tiles made of stoneware
Tiles made of stoneware, which in diagrams are called ‘gres’ are imported from 28 countries of the world. The list of countries-suppliers enlarges twice in comparison with 2004. Indubitable leader in this field is Poland; it covers 64% of the glazed gres tiles import market (Diagram 18) and 37% of the unglazed gres tiles import market (Diagram 19). G8 member states cover only 77% of the market. Small ‘players’ share in this segment is the biggest one among all types of tiles.
Diagram 18. Glazed gres tiles import structureSource: State Customs Service of Ukraine / Diagram 19. Non-glazed gres tiles Import structure
Source: State Customs Service of Ukraine
1.2.3. Sanitary ware
Regional import structure of sanitary ware differs greatly from tiles import structure. First of all, here we have different leading states (Diagram 20). In 2005 China (32%) became a leader and together with the USA (27%) it controls almost 60% of sanitary equipment import.
Diagram 20. Sanitary ware imports structureSource: State Customs Service of Ukraine
1.3. The biggest tiles exporters to Ukraine
We present data about the biggest suppliers from G8 according to results of 2005.
1.3.1. Belarus
Belarus is one of the least competitive regions that ceramic tiles and sanitary ware are imported from. Three leading companies cover about 99% of export of this state (Table 2).
First place is occupied by “Keramin” Public Corporation; it covers almost 70% of the market. The closest competitor PRUP “Berezastroymaterialy” has enlarged its delivery share from 7% to 25%. “Brest Factory of Construction Materials” stayed at the level of 6-7%
General supply volume increased from 65.39 million UAH in 2004 to 110.44 Million UAH in 2005.
Table 2. The biggest exporters from BelarusName / Export amount,
UAH million / Export share
Keramin PC / 75.23 / 68%
Berezastroymaterialy PRUP / 27.11 / 25%
Brest Factory of Construction Materials PC / 6.82 / 6%
The rest of companies (5 suppliers) / 1.28 / 1%
Total / 110.44 / 100%
Source: State Customs Service of Ukraine
1.3.2. Poland
Poland takes the second place in import volume supplied to Ukraine. There is no pronounced leader (Table 3); three companies cover almost 80% of supplies.
General supply volume increased from 59.97 Million UAH in 2004 to 93.66 Million UAH in 2005.
Table 3. The biggest exporters from PolandName / Export amount,
UAH million / Export share
Opoczno S.A. / 27.60 / 29%
Cersanit S.A. / 23.42 / 25%
Grupa Paradyz / 22.37 / 24%
Ceramika Gres S.A. / 4.94 / 5%
Ceramika-Konskie Sp.z.o.o. / 3.38 / 4%
Polcolorit S.A. / 2.65 / 3%
The rest of companies (29 suppliers) / 9.3 / 10%
Total / 93.66 / 100%
Source: State Customs Service of Ukraine
1.3.3. Spain
We have managed to distinguish 90 companies that import products to Ukraine from Spain. In 2005 was the same leader as in 2004, the Ceramica Colibri S.L. However, Сeramica Prestige S.A. stepped up closely to the leader position (Table 4). And Ape Ceramica S.L. share fell from 9% to 6%.