Exclusive Music Zone Musical Instruments

The Mining Rights Are For Clay, An Essential Raw Material In The Creation Of Tiles, But On Its Own, A Debatable Commodity That Generates Small Interest Among Miners.

SA's biggest maker of wall and floor tiling, Ceramic Industries, is delaying its call to invest R500 million into a new tile factory until it is able to convert its old order mining rights to new order rights.This manufacturer has export in some Europe's nations like Bosnia and Herzegovina,mostly ceramic tiles or in Bosnian keramicke plocice.

The mining rights are for clay, an indispensable raw material in the creation of tiles, but by itself, a questionable commodity that generates little interest among miners. The company applied to convert the rights in 2008.

Without a secured supply of a necessary raw material the company can't commit to an investment of that scale, claims CEO Nick Booth.

Ceramic Industries reported lower than anticipated profitability in its results to July. Higher electricity and gas prices, increasing costs of commodities like zirconium and borax which are employed in the production of glazes, and competition from inexpensive imports were cited as reasons for the poor revenues.

Group revenue reduced 3,4% to R1,5 bln from R1,6 bln in the year under review. But profits dropped 23% to R192 million from R250m last year. Strap-line earnings per share fell 30,6% to 785,3c from one 131,3c per share.

Making tiles is an energy intensive business, and the rising cost of electricity, and more especially gas, is making itself felt. "The energy cost per unit (m) has risen from R1,50 20 months back, to R3,60 currently." The price of commodities used in the making of tile and ceramic glazes rose by twenty percent to 25% during the past year.

But other costs,eg maintenance and labour, came in at less than inflation. The company is in negotiations with unions regarding income increases. The deadline is October and Booth is hopeful that deadlock can be evaded. Though results were down overall, there were pockets of success within the group, which operates four tile factories, a sanitaryware factory and a bath factory in SA ; and a glazed porcelain factory in Australia.

Maybe most surprising was the factory that competes most with cheap Chinese imports fared the very best. Pegasus, which produces tiles that sell in the R40m price bracket increased both production and sales volume, growing turnover by 4%. "We run a particularly competitive operation," claims Booth. "Our factories are top class and we can compete against the Chinese."

The year saw the company invest R130 million on clobber upgrades and new technology. "This is generally on high definition printers for our glazes. We intend to roll the technology into all our factories," Booth claims.

Exports to Africa grew by 20% during the past year, also helping to drive cash in the Pegasus business. "We are exporting to all our neighbours, with good growth coming from Mozambique and Zimbab- we ; as well as further out in Angola and the DRC. This side of the business is so promising that the company is examining the chance of building a factory in one of its export markets."

It was in the upper echelons that Ceramic suffered the result of Chinese imports. Vitro, the factory that produces upmarket floor tiling (more than R60m)

"We produce tiles made from red clay the type often mined in SA. But the trend is towards white based porcelain tiles. These are imported and are increasing in popularity. There is not any technical difference, and once tiles are coloured and glaz- ed, there is no visible difference eit- her. The difference is perception.

In other divisions the company scored 1 or 2 own-goals. Samca, which produces floor tiling (R50m to R80m) wrestled with management changes and inefficiency. And while management had its eye off the ball so did product designers who did not stay abreast of trends, leading to a loss of sales. The company had to drop its prices to win back share of the market.

The rest room business has been turned around, with sales volumes growing everywhere. "We lost market share and let go of our costs a bit. Costs are now in order and we have passed on the savings to win back market share."

To keep a tighter rein on the busi- ness, the management structure was reorganised. Booth utilized the group's 2 most experienced chiefs, Lance Foxcroft and Pieter de Lange, to head up the sanitary ware and tile divisions respectively. With the daily operations now in good hands, he is actually now more able to target enterprise-wide method and business development.

The Australian business had a difficult year, reporting production down by 26,5% and sales down by twenty five percent and hardly breaking even. While the economy was slow and imports high, almost all of the issues came down to production and commissioning issues at the factory. "We are close to a turn-around in this business. And as the sole tile manufacturer in Au- stralia we will have a competitive advantage. We simply have to be a little sharper."

Booth is positive about the year ahead, and about producing in SA generally. "Any maker of heavy stuff should operate in the market in which they sell the product."

He has concerns about the ability of makers to make new jobs in SA but believes the business will remain practicable th- rough continued investment in capital infrastructure. "The challenges we face today are dissimilar to those of 10 years gone but nothing is insurmountable."

As is clear from the 1 500c special dividend announc- ed earlier in the year, Ceramic is a cash generative company. Money reserves reduced to R217,7 million from R435,7 million and Ceramic's net asset worth per share fell by 10,5% to seven 081c (2010 : 7 912c) as a result of the R304m special dividend pronounced in May as reported tagza.com.

Find Factory Sealed On eBay Below:

Recently Purchased Factory Sealed:

---

dbx 1231 dual 31 band graphic equalizer brand new and factory sealed , crown xti 4002 power amplifier brand new factory sealed full warranty, new avid digidesign artist color factory sealed, new avid digidesign artist control factory sealed, new avid digidesign artist mix factory sealed, new avid digidesign artist transport factory sealed, new avid fast track c600 interface w pro tools mp 9 bundle factory sealed, new avid fast track ultra interface w pro tools mp 9 bundle factory sealed, new avid artist control v2 factory sealed, new avid mbox factory sealed, new avid mbox mini factory sealed, new avid mbox pro factory sealed, new avid mbox pro pro tools factory sealed, new avid pro tools le to pro tools 10 upgrade factory sealed, new avid pro tools mp to pro tools 10 upgrade factory sealed, new avid pro tools 10 card and ilok factory sealed, new avid pro tools 10 boxed factory sealed, new avid pro tools 10 hd upgrade from pro tools 7 hd factory sealed, new avid pro tools 10 hd upgrade from pro tools 8 hd factory sealed, new avid pro tools 10 hd upgrade from pro tools 9 hd factory sealed, new avid mbox mini with pro tools express factory sealed, yamaha hs50m powered monitor speakers isolation pads all new factory sealed, jbl prx615m cvr padded speaker cover brand new and factory sealed, audix f12 professional microphone, sony icd bx112 digital multi track recorder brand new and factory sealed, jbl c4r2241 factory cone kit for 2241g nib sealed, new projectsam orchestral brass classic factory sealed, new projectsam symphobia 1 factory sealed, new projectsam symphobia 2 factory sealed, new projectsam true strike 1 factory sealed, new projectsam true strike 2 factory sealed, new line 6 midi mobilizer factory sealed, new line 6 pod studio gx factory sealed, new line 6 pod studio ux1 factory sealed, new line 6 pod studio ux2 factory sealed, crown xti 4002 power amplifier brand new factory sealed , crown xti 6002 power amplifier brand new factory sealed , jbl prx618s 18 portable subwoofer system brand new, factory sealed , jbl control 25w 525in 2 way monitors white pair brand new, factory sealed , soundcraft fx16ii mixer brand new factory sealed with rack ears, audix f12 dynamic microphone, audix f10 dynamic microphone, factory sealed denon sc3900 digital turmtable and media player, mackie profx12 professional compact mixer brand new, factory sealed , american dj viomoon led brand new, factory sealed vio moon led , jbl srx712m 2 way stage monitor brand new, factory sealed single unit , mackie onyx 820i firewire mixer brand new factory sealed, brand new factory sealed hercules dj control mp3 e2, m audio avid profire 2626 firewire audio interface factory sealed, lexicon pcm native reverb plug in bundle new, factory sealed retail box, bogen tpu35b 35w brand new still in the factory sealed box , quantegy grand master 456 tape still factory sealed, peavey pvi 100 vocal mic w on off switch, cable , headworn microphone system brand new factory sealed, american dj sunray led brand new factory sealed , brand new factory sealed bag of 100 bcc34 cable clamps free shipping, behringer deq2496 ultra curve pro mastering processor brand new, factory sealed, avid hd native card brand new factory sealed w pt10 hd, rcf l15p540 low frequency 15 woofer brand new factory sealed, behringer ultra drive pro dcx2496 crossover brand new factory sealed, american dj revo 4 led moonflower brand new factory sealed, jbl d8r2406 replacement diaphragm brand new, factory sealed, jbl d16r2470 replacement diaphragm brand new, factory sealed, vestax vci 400 dj controller brand new, factory sealed, american audio hp550 lava headphones brand new, factory sealed, peavey pr12 2 way 12 speaker sold as a single brand new factory sealed , peavey pr15 2 way 15 speaker sold as a single brand new factory sealed , peavey pr12d powered 2 way 12 sold as a single brand new factory sealed , american dj galaxian 3d effect light brand new factory sealed , rme babyface silver version factory sealed item, rme ladyface pink version of the babyface factory sealed item limited edition, rme babyface blue version factory sealed item, qsc kw181 powered sub woofer 18 1000w in stock brand new factory sealed , ev pl84 mic new in factory sealed box, adk a6 cardioid condenser mic factory sealed, brand new , new steinberg rnd portico 5033 factory sealed, new steinberg rnd portico bundle factory sealed, new steinberg sequel 3 factory sealed, new steinberg vintage channel strip factory sealed, new steinberg vintage open deck factory sealed, new steinberg vintage stomp pack factory sealed, crown xti 2002 power amplifier brand new factory sealed , american dj revo burst effect light brand new, factory sealed ,