Less than 18 months ago Future Ceramics completed its $100 million, state-of-the-art, world-scale ceramics and porcelain tiles manufacturing plants in Dammam’s Second Industrial City.

Already the 100 per cent Saudi-owned project, the brainchild of Saudi technocrat and industrialist Mazen Al Hammad, is being expanded following successful commercial commissioning of its first phase in January this year.

'Phased expansion is integral to Future Ceramics’ long-term strategy to offer the widest selection of floor and wall tile sizes which can be manufactured at any one time,' Al Hammad, managing director and chief executive officer, explains.

The SR200 million ($53 million) expansion will see seven new ceramic production lines being built adjacent to the existing ceramics plant, which has four production trains over 26,000 sq m. With four existing trains at the porcelain plant next door, Future Ceramics will by April next year have a total production capacity of 55,000 sq m per day of ceramic and porcelain tiles, from 20,000 sq m per day at present.

Future Ceramics has rapidly established a glowing reputation for superior product quality, as well as growing market share, particularly in export markets. Today, it is one of the leading producers of wall and floor ceramic tiles and technical and glazed porcelain tiles, which have a wide variety of commercial and residential applications, including housing projects, schools, universities and hospitals, airports and shopping malls, anywhere in the world, Al Hammad claims.

Production goes on in a comprehensive facility with the very latest technologies and highest quality assurance

'The initial priority for our business model was to develop export markets for our ceramic tiles, in line with our mission to be one of the world’s most efficient, technologically-advanced ceramics and porcelain producers,' Al Hammad states.

Making waves internationally
The company already appears to be making waves internationally. Recently, it received the go-ahead to participate in Cersaie 2011 in September, a prestigious European ceramics exhibition, participation in which is much sought-after by leading ceramics players around the world. Participation will, says Al Hammad, enhance Future Ceramic’s international image and global market links.

The Future Ceramics concept was born in July 2003 when the investor partners established the company, backed by a $50 million loan from Saudi Industrial Development Fund (SIDF). There followed a three-year period during which the investors studied tiling market trends, as well as identifying the optimum location and size of a tiling facility in Saudi Arabia.

Blessed with good quality industrial land close to transport networks, with a reliable supply of gas (from East Gas Company) for the tile firing process and space to build a power generation plant, Dammam’s Second Industrial City fitted the bill.

From the facility, Future Ceramics currently exports ceramic tiles to the GCC countries, as well as Lebanon, Jordan and Yemen, and is eyeing growing demand for porcelain tiles in Europe and the US. Key markets are served via a network of wholesale distributors appointed by Future Ceramics, as well as a sales office in Italy which covers European and US markets.

Future Ceramics enjoys several strategic cost advantages over its global competitors which should see it take greater market share, says Al Hammad.

Strategic cost advantages
'First, we buy natural gas at much lower cost than manufacturers elsewhere. Second, our labour costs are lower than our Chinese counterparts because our plants are highly automated. Third, the Saudi Port Authority gave us land at King Abdul Aziz Port in Dammam on which we built a 20,000 sq m warehouse, which streamlines our logistics and distribution functions. And fourth, we own a mine near Riyadh, from which we source raw materials for tile manufacture.

'Furthermore, our export costs are low compared with overseas producers. To ship a container from Dammam Port to Hong Kong costs $200 per sq m. From Hong Kong to Dammam, the cost would be in the region of $1,200 to $1,600.

'From Dammam, we can also tap into the GCC’s interconnected transport and logistics networks which makes it easier to access these markets than, for instance, western and northern areas of Saudi Arabia. Since January 30 per cent of our production goes to other Gulf countries,' he says, pointing out that growing potential in Iraq and the upcoming World Cup preparations in Qatar bode well for the Company.

The company has sourced its manufacturing equipment from world-leading suppliers

However, Al Hammad also has high expectations for the Saudi market over the coming few years.

'Saudi Arabia is the world’s second largest importer of ceramic products, after the US. In the last five years, there has been a 22 per cent growth in demand for ceramic tiles in the kingdom.

'With the government planning to build some 500,000 housing units, at an estimated cost of SR250 billion, over the next few years, demand for tiles will soar. Future Ceramics is ideally placed to leverage these opportunities, as one of just five tile manufacturers in the kingdom, and the only one in the Eastern Province,' he says.

Future Ceramics’ highly automated ceramic and porcelain plants each employ just 42 specialist staff. The latest computer-aided process control technologies – including laser-guided systems – drive the production process, manufacturing single-fired ceramic tiles and through-bodied and glazed porcelain tiles to the highest international quality standards, says Al Hammad.

Technologies and quality control
'This is not a replication of previous technologies but an investment and application of the very latest technologies available in the world. It is a comprehensive facility incorporating the highest quality assurance, design and production and product inspection found anywhere,' he emphasises.

The strictest quality control standards are achieved via a complex series of checks at the end of each production line, including digital photography. The company is currently seeking certification from Centro Ceramica in Italy, which it expects to receive in June this year.

Plant equipment includes a 28 m high technology tower with kilns, presses and spray dryers supplied by Sacmi, Italy’s leading supplier. Handling equipment is provided by Technoferrari, while state-of-the-art inspection, sorting and packing equipment is supplied by Qualitron. Easy Line packaging is provided from System, which also supplies Rotocolor decoration technology in the plants.

Meanwhile, the delicate press decoration process stage for the production of high-quality technical porcelain is controlled by equipment from LB Officine Meccaniche, which also supplies the vertical plant engineering solution. This includes a powder colouring ‘Easy-Color System’ and other advanced systems for handling and controlling grain-size distribution of powders. The plant also includes Croma feeding units used for manufacturing large tiles, the company says.

This technology-rich environment is backed up by highly experienced specialist staff, including the laboratory manager recruited from one of the largest ceramic tile producers in Italy.

The press and dry section at the plant

In addition, the complex has its own in-house power generation, water supply and treatment facilities.

The new ceramic lines being built as part of Future Ceramics’ expansion plans will use the same equipment, with the addition of a digital inkjet printing machine.

Future Ceramics’ single-fired ceramic tiles are available in sizes of 43 x 43 cm, 33 x 33 cm (available in thicknesses of 9 mm or 12 mm for outdoor applications), 50 x 50 cm, 20 x 20 cm, 20 x 43 cm and 33 x 50 cm floor tiles. Meanwhile, porcelain tiles are produced in sizes of 30 x 30 cm, 30 x 60 cm, 45 x 45 cm, 60 x 60 cm. Tiles in the 60 x 120 cm size will be manufactured from next year.

Tile glazes are produced in the Dammam factory by Sicer Arabia, a 60:40 joint venture between Future Ceramics and Italy’s Sicer respectively.

Sourcing of raw materials
Future Ceramics says the tiles are manufactured to the high technical and aesthetic standards required in overseas markets as part of a broad quality-driven approach which includes sourcing materials locally wherever possible.

'Raw materials, including red clay, silica sand, feldspars and kaolin, for the body of ceramic tiles are sourced wholly within Saudi Arabia, primarily from Future Ceramics’ own mine. Once a rail line from the northern region to Ras az Zour is completed, we can also increasingly source raw materials from Maaden at competitive cost,' he explains. 'For the porcelain tiles, meanwhile, approximately 40 per cent of the materials are available locally. Clean feldspars with low iron content are currently imported from Turkey in bulk shipments of up to 30,000 tonnes each. Ball clay, meanwhile, is imported from Ukraine.'

Al Hammad highlights that for every square metre of tile produced, some 22 kg of raw material is required, underlining the strategic importance of secure supplies. Currently, the company’s mine supplies approximately 286,000 tonnes per year of raw material for the Dammam facility.

Countering challenges
Although well established and confidently plotting its growth trajectory, Al Hammad believes Future Ceramics faces several important challenges going forward.

'One is to continuously develop our human resources. We have about 320 staff, many of whom are Saudi, and they all receive regular training to sharpen their skills. In this regard, we are sending the first batch of five Saudi female tile designers to Italy for a course later this year to expose them to the latest international trends and techniques which will enrich their experience.'

'Another key challenge is to secure sufficient, stable supplies of natural gas at competitive prices to meet our future needs,' he explains. The company is also intensifying efforts to source low iron content feldspars as it steps up its focus on porcelain tile production. 'We are seeking a partnership with a professional mining company which has the expertise to clean mined feldspars,' Al Hammad comments.

Despite the challenges, Al Hammad says Future Ceramics is already fulfilling the vision of its investors to be a global pioneer.

'We wanted to build an ultra-modern, efficient and technologically-advanced facil- ity that is the best available anywhere and benefits from the very latest advances in the tile industry,' Al Hammad states. 'We have achieved that, and more. Our growth strategy will continue even after the second expansion phase is completed next year. Beyond that, we will look to add capacity wherever market demand is strong and new manufacturing facilities in Saudi Arabia or overseas are possible in the future,' he concludes.