Foshan, China, December 28--Big is the word in this ceramic tiles hub. Foshan's 350 makers produce 1.2 billion square meters of the product annually.
Nearly 5,000 years of manufacturing experience have solidified Foshan's role as China's leading producer of ceramic tiles. With total production lines exceeding 1,000 in number, Foshan suppliers turn out 1.2 billion square meters of tiles annually, against a capacity of 1.6 billion square meters.
In the past 10 years, this city of Guangdong province has accounted for 54 percent of China's production and 25 percent of worldwide output of ceramic tiles. Foshan's 10-year sales of the product have surpassed $2.3 billion, and annual output and capacity are expected to continue growing by 20 to 30 percent in coming years.
Foshan's long history in ceramic making dates back some 4,800 years, as indicated by a discovery of Neolithic relics there. The exporting of tiles, however, commenced only about 15 years ago. It peaked in 1996-97 but slowed soon enough as suppliers turned to a booming domestic market.
International business took off again in 2000 after suppliers made significant investment in machinery, QC, cost control and management systems.
Foshan is now one of the world's top exporters of ceramic tiles. In 2003, exports from the city reached $287 million, or 55 percent of China's total outbound shipment of the product. Suppliers export to more than 130 countries and regions.
Asia remains the largest market, although Europe and North America have registered the highest export growth in the past three years. As Foshan suppliers improve designs and offer tiles that match the quality of those made in Italy and Spain, their exports to key Western markets will continue growing.
Ceramic tiles manufacturing in Foshan can be characterized in one word: big. This major hub has a large supplier base, high capacity and big annual sales. In fact, Foshan alone accounts for 70 percent of the ceramic tile exports from Guangdong province, the acknowledged leader in China's ceramics industry.
There are about 350 ceramic tile makers in Foshan, 298 of which have annual sales that exceed $606,000 each. Capacity among most of these makers is high. New Zhongyuan Enterprise, the largest maker and exporter in the city, has an annual capacity of 100 million square meters while the second largest maker, Guangdong New Pearl Group, has an annual capacity of 60 million square meters.
Even the sizes of ceramic tiles from Foshan are big: 1,200x1,800 and 1,000x3,000mm against the more common 300x300 and 400x400mm. About 40 percent of the city's output are low-end tiles and 45 percent are midrange designs. High-end tiles make up the rest.
Of the 10 ceramic tile makers that the national government has named "China Famous Brands," eight are based in Foshan. These are Eagle Brand Holdings Ltd, Guangdong Dongpeng Ceramic Co. Ltd, Guangdong New Pearl, New Zhongyuan Enterprise, Jinduo Ceramics Co. Ltd, Diamond Ceramics Co. Ltd, Guangdong Wonderful Ceramics Co. Ltd and Monalisa Ceramics Co. Ltd of Guangdong.
In addition, 20 of the 33 "National Quality-inspection-exempt Products" designated by the China government come from Foshan makers. These suppliers constitute a second-tier supplier base.
Strong support industries bolster Foshan's leading position in China's ceramic tiles industry. The city has a well-established network of suppliers of ceramic-processing machinery. These suppliers turn out 80 percent of China's machines of this type. They offer equipment capable of polishing large tiles at quality equal or exceeding that of machines imported from Italy.
Materials used in the manufacture of ceramic tiles, including pigments such as silicate and glazes, are abundant in Foshan. In fact, the city is responsible for 50 percent of China's production of these materials.
