Mohawk in Joint Venture with Chinese Tile Maker

Calhoun, GA, July 7, 2010--Mohawk said it has made a minority investment in Sanfi Ceramics, a manufacturer of ceramic tile in China.

Mohawk said the joint venture will help it compete in China, the largest ceramic tile market in the world. Mohawk has opportunities to increase its equity investment in Sanfi in the future.

Ceramic tile is estimated to make up 70% or more of all flooring sold in China and is 25 times larger in units than the U.S. ceramic tile market, with anticipated growth of 10% or more per year, Mohawk said.

The company said that the top 10 manufacturers in China only comprise about 10% of the market, creating significant opportunity for expansion. This year, Sanfi has increased sales revenues about 50% from the prior year by continuing its focus on the local market.

Sanfi began manufacturing ceramic tile in 2003 and has grown to one of the top 10 participants in the Chinese industry. It specializes in mid to high end polished floor and glazed wall tile segments.

Sanfi's original manufacturing site is in Foshan supplying the national market and a new facility is starting up this year in Inner Mongolia focusing on Northern China. This fall, new equipment will be installed allowing Sanfi's participation in glazed floor tile which is the fastest growing segment of the Chinese tile industry.

"This new business venture clearly reinforces our continued commitment to being a global manufacturer in the flooring industry. We are excited to partner with a world class company such as Sanfi," said Mohawk CEO Jeffrey Lorberbaum.

Together, Sanfi and Mohawk have extensive opportunities to increase market share in China by broadening product offerings, providing leading style and innovation, improving efficiencies, marketing and distribution capabilities.

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