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STO. TOMAS, Batangas: Mariwasa Siam Ceramics Inc. will beef up
production this year to regain its position as the industry’s
market leader.
“[We] are aiming to fully utilize [our]
capacity, if that happens, [we] would start expanding [our]
operations here,” Surasak Kraiwithchaicharoen, president of MSCI
Philippines, said, adding the company wants to increase its
production by 20 percent towards full production before the year
ends.
The firm currently uses 80 percent of its total
capacity of 30,000 square meters a day.
Ten years ago, Mariwasa tiles accounted for more
than 50 percent of the country’s market for ceramic tiles.
However, the influx of imported tiles from China caused Mariwasa’s
market share to fall to 27 percent.
Kraiwithchaicharoen said that with the approval
of their appeal before the Department of Trade and Industry for an
extension of the safeguard duty on imported ceramic tiles, the
company is more bullish about regaining its post as the market
leader despite the soaring price of electricity.
The government has decided to extend safeguard
duties of P2.00 per kilogram of imported ceramic tile on the first
year, since the additional tariff will allow the domestic industry
to set a price in which it can cover its full costs and make
reasonable margins.
The government imposed a three-year safeguard
duty on ceramic floor and wall tile imports in 2002, and later
extended the protection for another three years. The safeguard
measure began at P5.40 per kilogram in 2002 and was reduced to P2.15
last year.
China’s tile exports to Asia, however, have
intensified, accounting for about 60 percent of the total market in
the country.
-- Katrina Mennen A. Valdez
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