Do not fear the financial tsunami Asia's largest ceramic factory into the market

Under the influence of the EU’s toughest anti-dumping investigations in the past 10 years and the control of the property market, the ceramic industry has rapidly “wintered”, and only Zibo has had hundreds of ceramic production lines shut down. However, at the time of the depression of Zibo Ceramics, Kohler officially started production on the 8th in Zibo's ceramics plant that invested nearly US$100 million in the first phase, which is Kohler’s largest ceramic factory planned in Asia.

The counter-market operation of the Kohler Zibo Ceramics Factory may serve as a sample for the ceramic industry to urgently undergo structural adjustment and transformation upgrades. “Kohler has taken China as a very important market and urbanization needs a long process, so we will continue to increase investment.” Xu Haohua, vice president of Kohler (China) Investment Co., Ltd., told the Economic Herald reporter on the 8th.

Layout of Shandong As a representative brand of high-end sanitary ware market, Kohler Sanitary Ware Co., Ltd. has long planned to locate the Shandong market. In June last year, Kohler opened its first flagship store in Jinan and its world's top luxury bathroom brands entered Shandong for the first time.

Before that, Kohler decided to build a large ceramics factory in Zibo, Shandong Province. It is understood that the Kohler Zibo Plant is divided into two phases of project investment, including a phase investment of 96 million US dollars, the second phase of the project will soon break ground, after completion is expected to become the largest ceramics factory in Asia, the production capacity to meet Shandong and northern China region Market demand for sanitary products.

David Kohler, president and chief operating officer, said at the opening ceremony of Zibo's factory that Kohler was looking for a new site for a long time. Before that, there were already 10 factories, including a ceramic factory in Foshan, but Kohler needed a new ceramic factory due to capacity expansion. , so decided to establish a new factory in northern China.

Zibo, as a well-developed city in the ceramic industry, has abundant resources in the development of the ceramic industry, which has clearly become the biggest reason for attracting Kohler. Xu Yuhua told the reporter. “The reason why Zibo was chosen was that it was more economical from the perspective of transportation, and secondly, the Zibo government gave some good policies and great support. Third, Shandong University of Technology could support ceramic research and development and technology, and the fourth was Zibo ceramics industry development. , including resources, raw materials, and labor are all very advantageous. Kohler chose Zibo after the selection of 24 cities.”

Kelly Asia-Pacific President Yan Jiaming said, “Zibo is a key platform for Kohler to broaden the Chinese market. Regardless of whether it is raw materials or ceramics, Zibo has become an important ceramics processing center in Shandong Province or even in China. The new plant will meet Shandong. And the market demand in the northern region has become the main force for us to open up the Chinese market in the future."

Against the market, under the circumstances of internal competition and external anti-dumping activities within the Zibo ceramics industry, Koehler's establishment of Asia’s largest ceramics factory in Zibo has become a topic of concern in the industry.

In addition to the export being affected by anti-dumping and the declining foreign trade situation in Europe, since 2006, China's ceramic industry has increased hundreds of production lines every year. A large number of products, especially low-end product inventories, are under pressure. Overcapacity is a fait accompli. Not only that, the vicious competition in the ceramics industry and the lack of brand building have also been criticized.

It is understood that Zibo City has clearly proposed that by the end of this year, 40% of the pottery production capacity will be eliminated, and the production capacity will be controlled from 1.2 billion square meters to 700 million square meters, so as to make the brand enterprises bigger and stronger and free up market space.

In addition, the effects of real estate control policies have become apparent, with the volume of transactions in first-tier cities falling and prices falling. In addition, according to statistics, for every 1 million square meters of buildings reduced in the real estate industry, there will be a reduction of 20,000 sets of sanitary ware needs. The pottery industry has also been affected to varying degrees.

Xu Yuhua told reporters that real estate developers have developed many high-end real estate and five-star hotels in the first-tier cities. Now entering the third-tier cities will develop different property types, and commercial real estate will increase. Kohler's products can meet their needs.

He also revealed that Kohler’s strategy in China will not adjust in the future as the real estate market changes. “Kohler has experienced many global economic fluctuations. In 2008, China was also affected by the international financial crisis. At that time, Kohler had increased its investment against the situation and established a Stainless Steel kitchen sink factory in Zhuhai. Therefore, the more difficult it is, The more the enterprise adjusts its structure and gains a share in transformation and upgrading, it is an opportunity for the enterprise."