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Ceramics – Mexico

Sector report

Ceramics sector

Mexico

Produced by: Itzel Hernandez


British Consulate, Monterrey, Mexico
Last revised: January 10

Whereas every effort has been made to ensure that the information given in this document is accurate,
neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation
and Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or
misleading statements, and no warranty is given or responsibility accepted as to the standing of any
individual, firm, company or other organisation mentioned.
Published by UK Trade & Investment.
Crown Copyright ©.

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Ceramics – Mexico

Table of Contents

OVERVIEW 3

CHARACTERISTICS OF THE MARKET 3

DEVELOPMENTS 5

OPPORTUNITIES 7

KEY METHODS OF DOING BUSINESS 7

CONTACT INFORMATION 8

PUBLICATIONS 9

ASSOCIATIONS 9

EVENTS 10

CONTACT LIST 11

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Ceramics – Mexico

OVERVIEW
The Ceramics industry is seen as an extension of the construction industry in
Mexico and will be manufacturing and selling 160 million square metres of flooring
and tiles by 2011 (an estimated increase of 200 million square metres).
The industry expects that this positive trend will continue during subsequent years.
At present, the average age in Mexico is 25. The construction industry predicts that
the population will annually demand between 700 and 900 thousand new houses
over the next 20 years.

CHARACTERISTICS OF MARKET

Mexico is the 6th largest producer of ceramics in the world and the 8th largest in
terms of sales. It exports approximately 11 million pieces of sanitary goods a year.
Their main competitors are China, Turkey, Spain, India and Italy.

The world production of sanitary goods is estimated at 272,000,000 pieces per year
and the main manufacturers are:

Rank Country
1 China with 100 million pieces
2 India
3 Russia
4 Brazil
5 Thailand
6 Mexico with 28/30 million pieces

Current Situation in the Mexican Market

The ceramics industry is largely based around a few companies located in the
northern states of the country. These companies are ranked among the top 20
manufacturers of sanitary ware and tiles in the word (Vitromex, Lamosa,
Porcelanite, Interceramic, etc.)

• The capacity production in Mexico is one of the biggest in the world.

• Strategic location of manufacturing plants and warehouses within the NAFTA


region.

• Mexican exports to the NAFTA region according to the North Ceramic Association:

Country Annual Pieces


Canada 4,000,000
USA 40,000,000
Mexico 8,000,000
Total 52,000,000

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Ceramics – Mexico

• State of the art facilities and latest technology, equipment and manufacturing
systems in each of the manufacturing plants.

Main ceramic manufacturers divided in the following areas of expertise:

SANITARY

Ideal Standard
Kohler
Lamosa
Vilbomex
Orion
Cato
Procemex
Confort Elegante
Anfora
Porcelamex
Toto
Nacesa
Ceramosa
General de Cerámica
Cegomex
Desarrollos Cerámicos
Helvex

TILES AND FLOORS

Porcelanite-Lamosa
Vitromex
Dal Tile
Interceramic
Cesantoni
Nitropiso
Cerámica San Lorenzo
Cerámica Santa Julia

DEVELOPMENTS

Helvex

Helvex, manufacturer of house hold products, will invest $20 million USD in a new
plant to expand into the business of making ceramic products to compete with
other Mexican companies such as LAMOSA and Vitromex.

The company will invest in the central state of Guanajuato to start up its new plant
to build sinks and other bathroom equipment with a capacity producing 150,000
products per month. Operations will commence in August 2010. With this
investment, Helvex will fight for a spot in the ceramics industry, to compliment

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Ceramics – Mexico

their actual business as they are a company that manufactures showerheads,


lavatories and bathroom faucets and fixtures; which are sold in 18 countries.

According to Helvex, the market share for faucets and showerheads and fixtures
totals 200 million per year, to which Helvex holds more than 50% of the market
share. Helvex will designate another $5 million USD on upgrading some of their
equipment. (Source: Excelsior newspaper 25 March 2009)

Interceramic

In 2007 they started operations at “plant number 9” after an investment of $40


million USD, increasing their overall production capacity by 24 %. Plant 9 has the
newest and most advanced technologies to manufacture ceramics in the world. The
plant has been designed by Interceramic and Sacmi Italy. They will manufacture
pieces measuring 50cms x 1m and 60cms x 1.20 metres. They have the largest
kilns in the world.

Grupo Lamosa

Largest Mexican toilet, sink, ceramic floor, tiles and adhesive manufacturer.
In 2008, Porcelanite became part of the Ceramic-tile Unit of Lamosa group. With a
production capacity in excess of 120 million square metres (1,300 million square
feet) the company is the leading ceramic-tile manufacturer in the world, serving
customers across the Americas.

Grupo Porcelanite, S.A. de C.V.

Manufactures and distributes ceramic-tiles in the Americas. The company offers


coordinated, wall, and floor tiles. Its products are used in kitchen, bathroom, dining
room, bedroom, living room, indoor and outdoor, commercial, and facade
applications. The company sells its products through a network of distributors. It
operates factories in Hidalgo, Guanajuato, Queretaro, Tlaxcala, and Sonora. The
company was founded in 1959 and is based in Mexico City, Mexico. As of November
30, 2007, Grupo Porcelanite, S.A. de C.V. is a subsidiary of Grupo Lamosa, S.A. de
C.V.

Cato

Sanitary ware manufacturer that is focusing on luxury furniture for the domestic
market and are only exporting 50% of their products (to US and Central America).
They are interested in new suppliers for the barcodes applied to their products.

Orion

Orion manufactures bathroom fittings, ceramic floor and wall tiles and faucets for
residential and commercial use.

Vitromex – Vilbomex
Vitromex has more than 35 years of experience in the market. They manufacture
and sell ceramic sanitary ware, ceramic floor/wall tiles, accessories and
accompaniments for bathrooms.
Nowadays is recognised as one of North America’s most important companies for
the production and sales of ceramic floor and sanitary ware. Their annual sales
have grown upwards of 12% per year over the past five years.

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Ceramics – Mexico

Vitromex hand over the sanitary ware sector to Vilbomex, which was bought by a
German enterprise; now known as the branch Villeroy and Boch.

Toto

A new plant in Mexico located in the city of Monterrey started operations in January
2008. Toto Sanitarios de Mexico is a subsidiary of Toto LTD Japan. The purpose of
this plant is to cover the US market.
The products manufactured in Mexico are for their luxury line (toilets, basins and
pedestal)

OPPORTUNITIES

Best prospects for the UK companies in the Mexican market include:


• Green initiative. Companies are changing and adapting their manufacturing
methods to comply with acquiring environmental friendly and non toxic chemicals
and products.

• Energy savings in terms of kilns, materials and new technologies.

• Water saving techniques and technologies in terms of manufacturing procedures


and machinery.

During the next two years, Mexico will be involved in housing projects (remodeling
and construction of new, low cost, middle and upper income homes) concentrated
in the most populated cities such as: Mexico City, Guadalajara, Monterrey,
Queretaro, Pachuca and Toluca.

Products most commonly imported by the Mexican Market

Type of Product or Equipment


Kilns
Moulds for minerals
Classifying machinery
Tools
Articles related to chemicals
Bricks
Other machinery

KEY METHODS OF DOING BUSINESS


Mexicans tend to buy machinery direct from the provider in this industry, although
agents/distributors can be useful for foreign companies with no representation.
38% of the market share is through agents/distributors with the rest dealing direct
with the provider. It is important than foreign providers visit the market (personal
relations count for a lot in this market) and after-sales and technical support is very
important to the buyer.

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Ceramics – Mexico

Two main channels for selling ceramics products in Mexico exist: (i) direct (open a
representative office or sell at exhibitions) and (ii) indirect (through
agents/distributors). There are not many agents/distributors in this industry but
many of them are based in Monterrey. They normally represent one or two brands
across the country. They can also offer technical assistance and maintenance for
machinery, which are valuable and essential marketing points for foreign companies
to consider. They tend to have very close networks in the Industry and know when
procurement from the big companies is necessary.

Procurement Decisions

New technology is only sought by large corporations (Vitromex, Lamosa, Orion,


Toto, Roca and Helvex). Small and Medium Enterprises (SMEs) are unable to afford
many technological advances and machinery and are more likely to buy second-
hand equipment, normally through intermediaries. Big companies will pay for high
quality, automated production and foreign machinery. Many of these companies
are concentrated in the north east of Mexico (Monterrey, Satillo). Their main
factors in buying include – price, quality and after sales services as well as technical
assistance. Where the cost is negligible, companies will buy on the basis of having
built a good relationship with the seller or their agent/distributor. Payment terms
need to be favourable due to difficulty of companies getting credit lines. Thus
payment is normally 15-20% up front with the remainder paid over a 1-5 year
term.

Import Regulations

UK companies should be aware of recently published norms in respect to quality


measures within the Ceramics Industry. When you import ceramics, the
product needs now to comply with a new norm (#0015) which came into force at
the beginning of 2009 to comply with sanitary procedures from the Mexican
Ministry of Health. This verifies that the ceramic product does not have lead or
toxins beyond a certain level in them.

If the product arrives at Mexican customs and the UK Company does not have a
customs agent representative, they need to hire one. The customs offices receiving
the product might be able to proceed without this certification (but of course it has
a cost). The customs office/agent needs to take one sample of the ceramics
product to an authorised lab at the port of entry (the lab needs to be authorised by
the Mexican Ministry of Health). The lab test is to verify that the paint/material in
ceramics is not toxic - the process is called "expectografía de gases" - and on
passing, will issue a “Certificate of Quality of Product”. This certification needs to be
done at the port of entry by a Customs Agent and it has a cost.

There is also a document called “Certificate of free sale”. Which according to our
local contacts has no cost or fee. It is a document that is needed sometimes to
verify the purchase/product imported to Mexico. It only shows that the transaction
is legal. In Spanish it is called "certificado de libre venta".

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Ceramics – Mexico

CONTACT INFORMATION
The Consulate can provide more targeted information under our “chargeable
services” programme.

When considering doing business in Mexico it is essential to obtain legal, financial


and taxation advice. A useful contact list of lawyers and other relevant professional
bodies as well as further information on the fire, police & security sector in the
country is available from the High Commission. For further details, please contact:

Jonathan Clare
Consul
Ave. Ricardo Margaín Zozaya 240
Edificio Nextel Piso 2
Col. Valle del Campestre
66265 San Pedro Graza García, N.L. México
T. +52 (81) 8356 5359
F. +52(81) 8356 5379
E. jclare@ukconsulate.org

And/or

Itzel Hernandez and/or Cristina Navarro


Trade & Investment Research Officer
Ave. Ricardo Margaín Zozaya 240
Edificio Nextel Piso 2
Col. Valle del Campestre
66265 San Pedro Graza García, N.L. México
T. +52 (81) 8356 5359
F. +52(81) 8356 5379
E. ihernandez@ukconsulate.org

PUBLICATIONS
INFOCERAM
Sociedad Mexicana de Cerámica Norte, A.C.
www.soceramnorte.com.mx
soceram_as@prodigy.net.mx

CERAMICA
www.ceramica.info

CRQ CONSULTRING GROUP


www.crq.com.mx

ASSOCIATIONS
Sociedad Mexicana de Cerámica Zona Norte, A.C.
Contact: Lic. Alejandra Salinas
Post: Administrative Director
Ave. Fundidora 501 Cintermex
Local 41 Primer Piso
Col. Obrera
64010 Monterrey N.L.

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Ceramics – Mexico

Mexico
T. +52 (81) 8369 6441/42
F. +52 (81) 8369-6443
E. soceram_as@prodigy.net.mx

EVENTS

Expo Espacios de la Construcción 2010


International Building, Housing and Construction Industry Exhibition.
Place: Mexico City. World Trade Center
Date: February 25-27, 2010
T. +52 (55) 5255 4304 Ext: 161
F. +52 (55) 5203 0801
E. info@expoespacios.com
W: www.expoespacios.com

Expo Nacional Ferretera 2010


Place: Guadalajara, Jalisco, México
Date: September 2-5 September, 2010
Further Information can be obtained on:
T. +52 (55) 5636 0406/ 61/ 62
F. +52 (55) 5335-0772/ 5636-0479
E. info@expoferretera.com.mx
W. www.expoferretera.com.mx

Expo Cihac 2010


International Building and Housing Exhibition
Place: Mexico City. Centro Banamex
Date: October 12-16, October 2010
T. +52 (55) 5661-0844
F. +52 (55) 5661-3445
E. expo@cihac.com
W: www.expocihac.com.mx

Related Event is USA


Coverings 2010
Place: Orlando, Florida USA
Date: April 27-30 2010

Surfaces 2010
Place: Las Vegas; Nevada, USA. Sands Expo & Convention Center
Date: February 2-4, 2010

Contact Lists

Sanitary Ware
Ideal Standard www.americanstandard.com.mx
Kholer www.kohlerco.com
Lamosa www.lamosa.com
Orion www.orionsa.com.mx
Vilbomex www.vilbomex.com.mx
Cato www.cato.com.mx

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Ceramics – Mexico

Nacesa www.nacesa.com.mx
Porcelamex www.porcelamex.com
Ceramosa www.ceramosa.com
Cegomex www.cegomex.com.mx
Helvex www.helvex.com.mx

Tiles
Dal-Tile www.daltile.com.mx
Interceramic www.interceramic.com
Lamosa www.lamosa.com
Orion www.orionsa.com.mx
Porcelanite www.porcelanite.com.mx
Vitromex www.vitromex.com.mx, www.stthomascreations.com
Ceramica Santa Jullia www.ceramicasantajulia.com.mx
Cesantoni www.cesantoni.com.mx
Nitropiso www.nitropiso.com.mx

Tableware
El Anfora SA de CV http://www.anfora.com
Santa Anita www.gis.com.mx

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