Phillipine Tile Maker Sees Slowdown Ahead

Manila, Philippines, Oct. 27, 2008--A Philippine ceramic tile manufacturer said sales growth may fall next year, citing a construction slowdown, higher costs of building materials, and consumers’ reduced purchasing power.

While sales growth stayed at positive levels from January to September this year, Mariwasa Siam Holdings Inc. said in that the quarter ending December is expected to be “very difficult," the company said in a disclosure to the Philippine Stock Exchange (PSE).

Higher fuel prices and the weaker peso have also increased the company’s production and transportation costs, reducing its products competitive edge against imports.

“Tougher competition is seen as more inflow of imported tiles is expected due to the lowering of safeguard duty and countries exporting to the U.S. diverting their goods to other countries, including the Philippines," said Mariwasa, 19 percent of which is owned by the Siam Cement of Thailand.

As a result, local tile producers are lobbying for increased tariff protection and stronger anti-smuggling initiatives.