Saudi Ceramic Company (SCC) reports continuing robust sales in the first quarter of 2006, following its 2005 financials that recorded total net sales of SR425 million ($113.3 million) and a net profit of SR83 million, up 28 per cent over the same period in 2004.

SCC – with its five area offices and 26 showrooms across the kingdom and a Dubai regional office and a workforce of 1,700 people – manufactures from Riyadh with two modern tile factories, a sanitary ware factory and a plant for electrical water heaters. With its plants running at full capacity, SCC is also spearheading ambitious modernisation and plant upgrades for its facilities with a number of expansion projects currently under way that will double its capacity by the end of 2007.
Established in 1977, SCC is acknowledged as one of the region’s leading ceramic companies involved in the manufacture and marketing of ceramic tiles, floor tiles, vitreous china sanitary ware, ceramic road markers and electric water heaters. In recent years, SCC has been increasing its product line covering all ranges to meet increasing competition and changing market demands.
SCC's recent agreement with LB Officine Meccaniche will further strengthen the company's position in the high-end market when its new porcelain tile factory producing Gres Porcellanato tiles – similar to natural marble and granite – is commissioned by the end of this year. 
Last year, SCC completed the expansion of its tile plant increasing production by 6.5 million sq m of tiles per year.  Further expansion of tile production will be completed in two phases, with the first phase on target for completion by the end of this year for an additional 7 million sq m and the second phase completed by the end of 2007. Once completed, total SCC tile production will reach 30 million sq m per year.
The sanitary ware plant is also undergoing an expansion with the installation of new machinery and the latest technology aimed at increasing product quality and production capacity. After completing this expansion by the end of 2006, sanitary ware production will reach 30,000 tonnes per year. The electric water heater plant expansion has been completed and production exceeded 500,000 units last year. 
SCC is strengthening its domestic presence and has recently opened up a new showroom in Abha and a showroom is under construction in Najran. 
SCC has also acquired a 100,000 sq m plot for its future expansion in Riyadh that will provide an eventual total plant area of 200,000 sq m. 
Priority is also being given to investment in human resources with SCC recruiting qualified Saudi nationals as well as upgrading and introducing new IT technology. In an increasing price-led market, SCC is gearing up to increase its competitive strengths and quality value proposition of its products.
Last year, export sales contributed 13.2 per cent of SCC's total sales with exports to more than 35 countries.
Abdul Karim Al Nafie, general manager of SCC joined the company in early 2003 following on from his career in private finance and the Saudi Industrial Development Fund (SIDF).
 “Our vision is to be the leader not only in Saudi Arabia but a major regional player and with WTO we cannot sit here but must leverage from our strengths in Saudi Arabia and use the comparative cost advantages we have in terms of energy and leveraging our access to raw materials,” says Al Nafie.
“In terms of LB Officine, this is a new segment for SCC providing more value and allowing us to target the growth in shopping malls as well as the private sector for homes and villas. We have made significant investments with about SR200 million invested this year alone and by 2010, these should reach about SR1 billion as part of our strategic five-year plan,” he adds.
“In terms of sanitary ware, we are currently de-bottlenecking the facility, re-designing the production, investing in robot spraying and developing new products. SCC has a leadership position for quality and value for money and our plans is to increase productivity and invest in high technology.
“Currently about a quarter of our business is generated by our showrooms, 50 per cent wholesale and 10 per cent directly to contractors. Our strategy is to sell in all markets and not be dependent on any one market,” continues Al Nafei.
According to Al Nafie, although SCC is investing heavily in its Saudi Arabian manufacturing facilities, he does not exclude the possibility of plants outside the kingdom.
'Further competitive advantages will come with increasing capacity expansion in Saudi Arabia as we have access to raw materials. SCC already has many competitive advantages and further advantages will come as we grow.  Our challenge is to utilise all our assets and all our facilities to the maximum,' he adds.
“Saudi Ceramic has a very good reputation and our plans are to enter new markets such as growing our accessories business and part of our retail operations. We are thinking in an open way and do not like to be closed-minded. The Saudi economy has always encouraged competition and WTO is itself defined by competition. However, there are challenges to be addressed such as the dumping taking place in the region often with sub-standard specifications. Nevertheless, SCC will always produce quality and take these competitive challenges seriously, not only in the domestic market but also in the export markets, where it is looking to increasing exports to reach a targeted 20 per cent by 2010,” concludes Al Nafie.