SAUDI Ceramic Company (SCC) achieved record sales last year despite the global economic gloom and is now targeting to exceed those sales figures, buoyed by the signs of the good growth in its construction markets both in Saudi Arabia and abroad.

In a three-pronged development strategy, the company is focusing on completing its expansion projects as planned, simultaneously introducing new products and expanding sales in its local and foreign markets, according to Abdulkarim Alnafie, chief executive officer.
The Riyadh-based company presently owns nine factories comprising four tile facilities, one sanitary ware factory, two electric water heater units and two frit plants. While three tile factories are already on line, the fourth one is set to start production in the third quarter of this year. This factory will add 17 million sq m to the company’s production capacity of tiles, boosting its total capacity of tiles to 52 million sq m.
The production capacity of its sanitary ware factory will reach 38,000 tonnes this year. The electric water heater factories now produce 1.5 million heaters of different types and sizes, after the company’s second unit became operational last year.
The frit plants for glazing tiles have a production capacity of 33,000 tonnes.

Apart from increasing its ceramic tiles and sanitary ware capacity, the company is also launching a Ceramic Pipes Company, in which it holds 50 per cent stake. The new company will produce vitrified clay pipes for use in water and drainage networks.
SCC is also looking for new investment opportunities that help utilise its technical and production capabilities. In line with this goal, it has established the Desert Mines Factory, which will specialise in providing raw material for the company’s factories as well as other factories.
Commenting on the company’s performance, Alnafie says: “Despite the financial downturn that affected many countries and some economic and industrial sectors, the Saudi Ceramic Company has fortunately managed to steer clear of it and continues to expand its production capacities in keeping with its target.”
Its 2009 sales record stands testament to this achievement with the company’s total sales value having reached SR957.7 million ($255 million), an increase of 12 per cent over 2008 sales.
The company also continues to expand its export activities in a bid to boost its global market penetration, which currently extends across 48 countries. Its export sales last year stood at SR126.6 million ($33.7 million) compared to SR124.7 million ($33.2 million) in 2008. The firm realised a net profit of SR197.2 million ($52.6 million) last year compared to SR 177.9 million ($47.4 million) in 2008.
SCC is a leading producer of ceramic and porcelain tiles and accessories, sanitary ware and electric water heaters, offering its customers high-quality and the latest products to cope with new requirements. It also provides customised products, technical and marketing support, while ensuring the availability of spare parts and after-sales services.
The company places high priority on 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 a part of its budget to finance R&D programmes, which in turn helps it to maintain a competitive edge in the market,” says Alnafie.
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.
The well-equipped R&D department also  advises on the acquisition of the latest manufacturing technology. In addition to in-house designs, the company also associates with international tile and sanitary ware designers and design studios to come up with world-class models to cater to diversified market segments.
 “SCC also monitors changing trends in the market and keeps abreast of latest developments in the global markets,” Alnafie adds.
Operating for the last 33 years, SCC has delivered hundreds of millions of riyals worth of products to almost all government and well-known private sector projects, dealing with contractors of all sizes. It has also supplied its products to hundreds of distributors and project owners.
Established in 1977, SCC’s factories are located in Riyadh Industrial City over a total area of 450,000 sq m. The company has 3,300 employees and owns and operates 24 showrooms located in all major cities of the kingdom, in addition to a sales office in Dubai, UAE.