Saudi Ceramic Company (SCC) – one of the leading ceramic manufacturers in the Middle East – has embarked on major expansion plans in a conscious shift towards the high-end segment and in a bid to gear up the company to meet the changing market trends.

In the first of a series of plants, SCC is set to launch production of Gres Porcellanato tiles, adapting itself to the increasing global competition and also strengthening its position in the high-end segment, according to general manager Abdul Karim Al Nafie.
Unveiling the Riyadh-based company’s plans for this year, Alnafie says: “We will start porcelain production in the second quarter of this year and will produce tiles in many sizes upto 1 by 1 m in various finishes and textures.
“Our main objective is to produce Gres Porcellanato tiles that are similar to natural marble and granite for the high-end of the market”.
SCC has many other expansion plans including increasing production capacities, modernisation of plants and also introduction of new products and sizes.
Notable among the changes is doubling the tile production capacities to 30 million sq m by 2007.
The plan has already been approved by the company’s board of directors and will be completed in two phases – the first to be completed in 2006 and the second by 2007.
“Following the completion of this expansion, SCC will be able to produce 30 million sq m of tiles per annum making it one of the largest manufacturers in Asia,” says Alnafie. “We believe that this new expansion, including our investment in new technological processes and designs will take us to greater heights vis-à-vis quality and productivity and also help us to consolidate our leadership position in the region.”
SCC, which is also a leader in the electric water heater segment, will launch a new line of central electric water heaters in mid-2005. Many new sizes – ranging from 30 litres to 300 litres – will also be introduced during this period and this is expected to help the company to cater to large segments of the electric water heater market.
“Last year was a record year for the SCC,” says Al Nafie. “The company reported a sales turnover of SR322 million ($83 million), which is 12 per cent higher than the previous year and has registered a profit of SR106 million, 246 per cent higher than 2003 (including extraordinary income of SR42 million).”
Al Nafie attributes the success that SCC achieved last year to the rapid expansions and also a combination of quality products and aggressive marketing.
“We have been balancing our business to meet local as well as international demand by offering quality products and through our various customer-oriented services,” he points out.
Last year, the company undertook a series of expansion and upgradation programmes, which have resulted in a significant increase in its production capacity. SCC boosted its existing capacity of 10 million sq m of tiles by an additional 6 million sq m and also significantly increased the production capacity of its sanitary ware and electric water heaters, says Al Nafie.
“We have added more computerised robot-spraying machines to our sanitary ware plant to enhance the perfection of our products and many other pressure casting machineries,” he says.
Last year also saw the company launch a range of products and sizes. In ceramic tiles, it started the production of 10 by 10 cm tiles and introduced many new designs as well.  The company now offers ceramic tiles in sizes ranging from 10 by 10 cm to 60 by 60 cm.
“We have had good support from the Saudi Industrial Development Fund (SIDF) for our ongoing expansions,” says Al Nafie. “In the last two years, SIDF has extended three new loans totalling SR60 million to support SCC in its various expansion plans.
SCC, which is exporting to more than 25 countries, has also strengthened its position in international markets. Last year saw the start-up of its first international sales office in Dubai.
In addition, keeping up its commitment to the Saudi market – one which accounts for more than half of its total sales – the company has opened two more offices in Saudi Arabia, one in Jizan and the other in Hayal, bringing the total number of showrooms in the kingdom to 25. A further three showrooms – which will offer a one-stop-shop to all wall and floor requirements – are expected to be opened in Saudi Arabia this year.
Incorporated in 1977, SCC has two modern tile plants with an annual production capacity of 16 million sq m, one sanitary ware plant with a capacity of 1.8 million pieces per annum and one plant exclusively for the production of electric water heaters with an annual capacity of 600,000 pieces, all located in Riyadh.
SCC also produces 1.2 million pieces of ceramic road markers annually.