General Ceramics of the UAE is investing in new technology and expanding its facilities in response to more competitive and changing market conditions in the Middle East.

Enhanced production facilities, new product lines, a new showroom and offices are all part of the company's strategy of change to stay on top of the regional markets, which are themselves going through structural changes, says Noel Lee, general manager of the Sharjah-based manufacturing firm.

He continues: "The Middle East has always been an attractive market for exporters but recent economic slowdowns in Europe and the West have led to a greater focus by exporters on this region. The levels of sophistication and economic stability make the Middle East markets more attractive than many others in times of economic slowdown.

"Changes are also taking place within the global sanitary ware manufacturing industry as companies continue to strive for more efficient processes and lower-cost manufacturing bases. Consolidation within the global industry has led to a number of acquisitions of well-known brand manufacturers within the UK and across Europe and there are increasing volumes of sanitary ware entering the market from Eastern Europe and Asia under 'traditional' brand names.

"In the UAE, commercial investment in residential real estate has slowed, resulting in a greater number of supplies competing in a reduced market. Commercial and hotel developments require higher product performance and new innovative designs in a market where facilities play an important part in attracting ever more discerning foreign travellers and tourists."

After a complete business review, the board of General Ceramics approved substantial capital expenditure during the year, says Lee, who joined the company earlier this year.

The majority of the expenditure will fund the manufacturing facilities upgrade with the purchase of new production and firing technology from Sacmi Company of Italy, a world leader in ceramic plant and equipment, under a Dh5 million ($1.36 million) contract signed in June.

The investment is expected to make a major improvement in production flexibility and will also allow new product ranges to be introduced in response to market demands.

"The new technology will increase manufacturing capacity, improve lead times and enable us to offer better customer service. The benefits are due to come on-line in mid-2002," he says.

In addition to investment in manufacturing plant, General Ceramics is reassessing its product/package offering. As a result, two new ranges will be introduced during this period. "Further products are being added to our package offering for customers with new product ranges being introduced in brassware and faucets, concealed flushing and water-saving technology, accessories and improvements to our hospital/clinic/disabled product ranges," Lee says. "A big advantage is that we have been in this market for 22 years and we are putting this experience to good use when redeveloping and tailoring our ranges to this marketplace.

"We have also committed Dh1.5 million this year for the construction of a new technical showroom and offices in Sharjah and we have recently opened a trading office in Dubai to enable us to serve the Dubai market more efficiently and to become an integral part of the industry in Dubai. We are reviewing all aspects of our business."

The new showroom will focus on the technical and performance aspects of the products and installations options. It will be targeted at the professional specifier, designer and installer.

"Water saving has become a very important issue and many new developments have been made in reducing water consumption and improving product efficiency. This will be a key feature in the new showroom which will be completed early next year," he says.

"Our outlook for the immediate future is that the market will remain very competitive with the overhanging uncertainty of recent global events. Foreign competition will continue to increase with some new entrants yet to arrive," says Lee. "We are confident that our current development strategy, coupled with a strong focus on manufacturing cost and quality will put us on a better footing for the challenges of 2002."