Arab News, Thursday, Aug 8, 2019 | Zul Hijjah 7, 1440
RAK Ceramics considers new Saudi plant as demand heats up
RAK Ceramics is considering adding a secondary manufacturing plant in
Saudi Arabia to meet local demand as well as growing export markets in Europe.
The UAE-based tile maker reported an 8.5 percent decline in second quarter
profits to 110 million dirhams ($29.9 million) compared to a year earlier as it
absorbed rising energy costs.
Total revenue fell 6.8 percent to 1.29 billion dirhams during the period, but
its sanitaryware sales were lifted 7.6 percent on sales to Saudi Arabia, India
“We have seen an improvement in our gross margins during the period due to
continued investment in operational efficiencies,” said RAK Ceramics Group CEO
Abdallah Massaad. “Despite high energy costs, we remain focused on running an
efficient and profitable business.”
A slowdown in the regional construction industry has hurt demand for tiles as
fewer new villas and apartments are built while at the same time, the strong US
dollar to which the UAE dirham is pegged has made construction exports from the
country more expensive.
RAK Ceramics is one of the largest ceramics’ brands in the world with the
capacity to produce 123 million square meters of tiling per year across its 22
factories in the UAE, India, Bangladesh and China.