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Energy crisis weighs on manufacturers of tiles 2010-10-18
The ceramics industry is going through a difficult phase, as inadequate power supply has forced many companies, their plans for expansion in the margin.
The demand for Ceramic Tiles and Floor Tiles has increased to 15 percent annually, while local producers to meet nearly 80 percent of total demand, said industry experts.
They said the increased demand for multilayer ceramic tile last seven years, influenced by rising demand in real boom industry and readymade garments.
Industry people said the sale of local tiles or even enter the domain of the interim government, which was the "worst moment" of real estate.
However, the sector now faces the difficult consequences of energy shortages in recent years. Many players think that doubling its expansion plans.
Jami Syed Ali Abdullah, assistant sales manager of RAK Ceramics Ltd in Bangladesh, said his company could not increase its production capacity due to the energy crisis.
"The demand for local manufacturing wall and ceramic floor tiles began to increase at the same rate as the growth in housing and clothing made in 2004."
"But now, when demand grows faster, we can increase our production capacity due to gas crisis," he said.
"It's not that local sales have fallen, but can produce more on the growing demand, we can not answer now," said Jami.
"Demand will grow as the elements that match international standards, and prices are competitive compared to imported products."
RAK Ceramics Company of the UAE, is the market leader with 35 percent. The company, founded in 2001, producing 20,000 square meters of tiles per day.
Industry experts estimate the market for ceramic tiles and floor tiles to Tk 1,200 million rupees, which was previously dependent on the value of imports.
In late 2000, local entrepreneurs began to be devoted primarily to the import of tiles and other materials from the Cabinet to consider the issue.
Currently, 11 companies producing Ceramic Tiles. Local businesses, such as tiles Modhumoti, ceramics Mir, the Great Wall of China and Bangladesh are 40 percent of the market.
SM Shahjada, Director General of the Great Wall, a tile manufacturer in rapid growth, it has also agreed that the energy crisis keeps growing.
"We've doubled our production capacity in 2009. But demand is growing and we're capable of more. We can not move to expand our facilities, just for the gas crisis," he said.
"The government has stopped the gas supply to industrial units. Until the new compounds have to wait."
Great Wall, began production in 2006 has a 15 percent interest in the market by producing square tiles of 1350 per day.
In addition, industry experts also urged the government to reduce import tariffs on raw materials.
"The government is a tax of 20 percent to 25 percent of raw materials including kaolin, clay and silica sand," he said.
"If the government reduces the need to reduce production costs and this will help us to a much lower price."