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Vitra
Tiles
2 . Background
2.1 Company Background
Vitra Tiles is a subsidiary of Eczacibasi Ceramic Tiles (Eczacibasi Karo
Seramik). Formed in 1991, Eczacibasi is the fastest growing ceramic tiles
producer in Turkey. They are also a leader in the production of high quality
ceramic tiles. Eczacibasi Ceramic Tiles is a part of the Eczacibasi Holding.
Formed in 1942 it is one of the leading industrial groups in the Turkish
private sector. It consists of 37 companies in 4 divisions. It has over
7600 employees and generated net sales of over $1.5 billion in 2000.
Eczacibasi Ceramic Tiles produces a wide range of products, ranging in
sizes between 5x5cm to 60x60cm. The company produces approximately 3000
products. The company is focused on investing in research and development
to originate new techniques in ceramic tile production. It also makes
use of an extensive computeraided design department. The company has two
modern production facilities in Turkey, in Bozuyuk and Tuzla with a total
of 1030 workers.
Eczacibasi Ceramic Tiles produces a wide range of products, ranging in
sizes between 5x5cm to 60x60cm. The company produces approximately 3000
products. The company is focused on investing in research and development
to originate new techniques in ceramic tile production. It also makes
use of an extensive computeraided design department. The company has two
modern production facilities in Turkey, in Bozuyuk and Tuzla with a total
of 1030 workers. The facilities amount to over 15 million m2 of production
capacity.
Focused on developing quality as a guiding principle throughout its operations,
the company has implemented Total Quality Management and has used the
Enterprise Resource Planning (ERP) programme, Prism, effectively for the
last seven years.
The company exports to a large number of countries including:
- Germany,
UK & Ireland
- USA
& Canada
- Benelux
& Scandinavia
- Russia
& CIS
- Australiua
- Middle
& Far East
- Austria
& Switzerland
A
critical component of the Eczacibasi Ceramic Tiles and
Vitra Tiles business model is the use of Info Centres.
These were set up to provide the expertise and consultancy
services required to educate the market about ceramic
tiles. Alp Guldur, the eBusiness Project Manager, referred
to the centres as a key source of competitive differentiation
for the company.
In the main the Info Centres do not actually sell product
but simply provide educational services. The focus is
on ensuring customers use the right tile for the right
application. Customers will then be diverted to local
retailers or distributors to purchase their chosen products.
The company has seven Info Centres: four in Turkey,
two in Ireland and one in Germany.
2.2 Vitra Tiles
Vitra Tiles (Ireland) Ltd. was set up as a joint venture
between Eczacibasi Karo Seramik of Turkey and Qualceram
PLC of Ireland, each partner holding 50% of the shares
of the company. The joint venture agreement was signed
in July 1998 and the factory at Arklow, Co. Wicklow,
was officially opened in September 1999. Vitra Tiles
is Ireland’s largest ceramic tile manufacturer.
EKS has manufactured tiles since 1991 and has developed
extensive production expertise. They have been exporting
to the UK from Turkey since 1994. Vitra Tiles took over
this business in March 1999 and has grown the business
to £3.5M YTD.
Qualceram PLC has manufactured sanitary ware in Arklow
since 1988. Both partner have technical expertise in
ceramics manufacture and both have excellent track records
in export markets.
In July 2001 Eczacibasi made a strategic decision and
agreed to acquire 100% of the shares of Vitra Tiles.
Current employment level at the factory is 80, with
53 involved in production. Output capacity at present
is approximately 1 million square metres per year. This
will increase to 1.5M square metres with the next stage
of the investment.
The Arklow factory contains two production plants, one
for plain tiles and one for Décor. The Décor
plant has capacity of 100,000 pieces per month in a
500 m2 closed production area. The main line plant has
around 750 000 m2/year capacity. The company has positioned
itself in the mid to top-end of the market. It sells
through the retail and the architectural market and
has developed two different ranges of wall and floor
tile products to do so:
- Vitra
Rezidans: Rezidans range products are mainly for
decorative purposes in residential locations
- Rooms
- Kitchens
- Restrooms,
etc.
- Vitra
Arkitekt: Arkitekt range refers to technical high
end products mainly used in industrial locations.
This range links functionality with aesthetics and
offers modular usages.
- Hospitals
- Airports
- Shopping
Malls, etc.
The sales
figures for the last few years show Vitra’s impressive rate of growth.
Vitra Tiles contribution to revenues grew from less than 1% in 1999 to
just under 10% in 2001.
Key markets for Vitra are the local Irish market and the UK, French, German,
Belgian and Norwegian export markets.
ECZACIBASI
KARO SERAMIK
(1000 M2) |
1999
|
2000
|
2001 |
| Domestic |
4,950 |
6,331 |
6,400 |
| Export |
6,055 |
6,012 |
6,900 |
| TOTAL |
11,005 |
12,343 |
13,300 |
VITRA
TILES IRELAND
(1000 M2) |
1999 |
2000
|
2001 |
| Domestic |
27
|
126 |
170 |
| Export |
67
|
623 |
1,130 |
| TOTAL |
94 |
749
|
1,300 |
2.3 The Tiling Industry & Market
The following diagram gives a visual over view of the
manufacturing process for tiles:
The kiln at Arklow runs 24 hours a day, 365 days a year
on the basis of three shifts. Efficient production is
key to success in the business. Vitra has prospered
as a result of being able to access the decade plus
of experience built by EKS. Robert Hickson, the General
Manager, also brought substantial experience in this
kind of production environment.
The tiling industry has a history that can be traced
back over a thousand years. Key to the development of
expertise was access to raw materials. In addition,
the industry flourished in hot climates where tiling
was popular. The largest producer in the world is China
and the key producers in Europe have been Spain, Italy
and Turkey. Most of the manufacturing equipment required
to build and run a tiling factory is developed and sold
in Italy. From a competitive point of view the market
is highly fragmented. Around 250 individual plants exist
in Spain and over 400 in Italy. The leading companies
in each country have substantially less than a 10% market
share.
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