RAK Ceramics withstands fall in consumer demand

Dubai: The ceramics industry is faced with a problem of demand shrinkage due to project cancellations and delays, says Dr Khater Massad, CEO of RAK Ceramics.

"This will lead weak factories to face a difficult situation in the upcoming months while strong, innovative and dynamic players will be able to profit from the situation."

Despite the decline in demand, Dr Massad says RAK Ceramics has not been affected. "We do not see any material decrease in demand."

During the first nine months of 2009, RAK Ceramics reported a net profit of Dh216 million and sales of Dh1.97 billion.

The net cash flow from operating activities increased by Dh200 million during the nine months which was used to pay for capacity expansion and repay long term loan as per amortisation schedule.

The net debt was reduced by Dh232 million in the first nine months of 2009.

Big 5 exhibition

RAK Ceramics used the Big 5 Exhibition, a four day construction and infrastructure event, to announce the launch of its pro environment façade system; RAKSLIM tiles.

This was in line with the Big 5 exhibition's green theme and RAK Ceramics' efforts to complement the UAE Government's green buildings programme.

The new tiles have been developed to reduce the amount of heat and sound which buildings absorb, which will aim to save the amount of energy needed by buildings in the UAE.

The announcement comes on the heels of the company's expansion. Dr Massad said: "We actually took a bold decision to increase our capacity at RAK this year, by more than 20,000 square metres per day — an increase of 10 per cent, only with the confidence that we can do well despite of the global situation.

"As a matter of policy, we did not stop our product innovation in the year and we will continue to invest in new technologies and standup to our core values of leadership in the ceramics field and the coming years are going to be more eventful and successful."