Saudi Ceramic Company (SCC) continues to focus on its expansion plans, which are scheduled for completion in two years. An encouraging 12 per cent growth in sales last year, despite the global financial crisis, has boosted the company’s confidence in achieving an even better performance this year with its steadily increasing capacity.

Apart from increasing its ceramic tiles and sanitary ware capacity, the company is now poised to see the launch of operations of Ceramic Pipes Company, in which it holds a 50 per cent stake. The new company will produce vitrified clay pipes for use in water and drainage networks.

SCC, which is one of the oldest and leading ceramic companies in the Middle East, currently produces 32 million sq m of ceramic and porcelain tiles, two million pieces of sanitary ware and 1.5 million units of electric heaters. This is set to increase to 50 million sq m of ceramic and porcelain tiles, three million pieces of sanitary ware, in addition to 3.6 million pieces of decorative tiles and five million pieces of tile accessories, when the expansion process is complete.

The tiles plant

SCC manufactures and markets ceramic and porcelain tiles, sanitary ware, and electric heaters. It also markets a wide range of bathroom accessories such as mixers, seats and covers from leading manufacturers under the brand name Cerosa.

In line with its expansion plans, the company has opened a number of new factories over the past few years. SCC now has a total of nine factories, which include three for tiles, one for sanitary ware, two for electric heaters, two frit factories, and one dry grinding plant.

Abdulkarim Al Nafie, CEO of the company, comments: “All these developments are in accordance with our expansion plan which is ongoing. Our focus is on increasing the production capacity of our factories. We will continue with these plans, while looking for new investment opportunities that help utilise our technical and production capabilities.”

In line with this strategy, SCC has established the Desert Mines Factory, which will specialise in providing raw material for the company’s factories as well as other factories.

SCC was established in Riyadh in 1977 and has a total of 24 showrooms in most cities in the kingdom, in addition to a sales office in Dubai, UAE. The company registered sales of SR957.7 million ($255.4 million) last year, showing an increase of 12 per cent compared to sales in 2008 which were SR857.1 million ($228.5 million). SCC anticipates even further growth and sales this year, due to the increase in its production capacity, through attracting new customers within and outside the kingdom.

Commenting on the kingdom’s construction sector, Al Nafie says: “The construction sector in the kingdom has witnessed a boom during the last few years, which is expected to continue. Many huge projects have been launched in most of the cities, such as the economic cities and projects in the public and private sectors. The housing sector has also flourished in a bid to provide suitable housing for Saudis by granting land and offering loans via the Real Estate Development Fund.”

SCC tiles ... highest quality.

The company has 2,600 personnel on its rolls, of which 650 are Saudis, as the company is keen to employ nationals. It also has a training centre that aims at enhancing employees’ capabilities and providing them with the necessary skills. SCC also places high priority to maintaining the quality of its products and its productivity. Using the latest technology and equipment, it ensures that the highest quality standards are adhered to during the various manufacturing stages, starting from selection of raw materials to the packaging of the final product, transportation and storage. All materials used in manufacturing are subjected to strict technical inspection for quality and suitability by a team of highly-qualified technicians, supported by the latest inspection equipment. Machines are also regularly inspected to ascertain their high performance, while products are checked to ensure that they comply with specifications and are free from any manufacturing defects.

“The company also focuses its efforts on research and development (R&D) and allocates part of its budget to finance R&D programmes, which in turn helps it to maintain a competitive edge and its market position,” says Al Nafie.

The teams working on these programmes help launch new products, study and recommend new technical innovations and high-quality raw materials to be used in the manufacturing process, scrutinise the surface and colours of SCC’s products, seek ways to decrease production costs through re-engineering of operations, as well as offer solutions for manufacturing and technical problems.

“SCC also monitors changing trends in the market and keeps abreast of latest developments in the global markets. The company also works with leading international companies to innovate new designs that fulfil the various needs of the market,” Al Nafie concludes.