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Ceramic enterprises in Sri Lanka to cut production to deal with crisis
News classification: World Ceramic News Increase Time: April.7,2009
Sri Lanka March 23 and tableware tiles listed company said that because sales are falling sharply, and probably have to reduce production, they may dismiss workers. Since the recession in major markets this year, their much lower sales forecasts, but also because of rupee appreciation and high domestic costs caused by the lack of competitiveness in the international market.
Sri Lanka Ceramics Council in an industry organization said that the sales decline in the majority of the company may not be able to access the Government's stimulus plan to assist the industry in the current economic recession, sales of close to maintain last year's level.
The most severely affected are the exporters tableware, and decorative ceramic enterprises.
"Ceramic tableware are consumer durable goods, purchase of luxury goods can be postponed, ceramics Committee said in a statement.
"With the reduction in sales, the company has cut exports and domestic production."
The committee said that if the extra burden, such as a new liquefied petroleum gas tax continue, the company will be forced to cut, and some are even facing possible closure.
Gas
Committee and its members are strongly opposed to the new gas tax, they said, could not bear the cost of reaching the level of market slowdown does not make them more competitive.
Ceramic tableware exporters Dankotuwa, it has lost orders for overseas buyers.
One big buyer of the United States, Crate and Barrel, has shifted to the procurement of Indonesia.
"As the rupee appreciation, we have lost price competitiveness in other countries allow their currencies in order to ensure the competitiveness of its exports," the company said in a statement.
Economic recession reduced consumer spending, the global market is already shrinking.
"All the world's manufacturers are faced with the Order has a serious recession" Dankotuwa Porcelain said.
"This led to a lot of the world's leading food companies collapse."
Britain has one of the 250-year-old Wedgwood (Wedgwood), it has filed for bankruptcy protection.
Dankotuwa porcelain that has been forced to cut production 30 percent and cut its spending on welfare and transport facilities for staff.
Tile problem
Ceramic tile manufacturer in Sri Lanka an annual production of 3 million square meters of floor tiles, they said that the current operation to achieve full capacity, because the growth of benefits has been vigorous development of the real estate market last year.
With the end of the construction industry and real estate boom of the bursting of the bubble, the company was slightly lower than forecast production this year.
According to the forecast, fiscal year 2009 sales in 2008 from 250 million up to Rs 3 million, fiscal year 2008 the export turnover is expected to reach 1.57 million U.S. dollars from 2.14 million U.S. dollars.
Ceramic tile manufacturer in Sri Lanka said that to maintain 90 percent over the previous year's export turnover of the Government's stimulus package would be impossible to realize.
"If we can maintain this high level of exports, we do not need a stimulus package," the company said in a statement.
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