Tiles put a shine on business in Africa

Companies link up to form ceramic enterprise that is now taking Kenya by storm

The Belt and Road Initiative has led to new opportunities in Africa for two Chinese companies.

Keda Clean Energy, a high-tech company based in Guangdong province, formed a partnership with Sunda International, an import and export trading firm, to make a foray into the East African market last year.

Eager to tap into the construction boom in Kenya-specifically the real estate aspect-the companies founded Twyford Ceramics Co Ltd, which specializes in the manufacture of ceramic tiles.

"Keda responded to the call of the Belt and Road Initiative to make the overseas proportion of its sales reach 40 percent," says Jason Zhong, deputy president of Keda.

Both companies, Zhong says, agreed on using Sunda's ceramic tile brand, Twyford, to establish the Kenyan venture.

"We reached an agreement to invest in Africa by constructing a tile factory to bring the best Chinese ceramic equipment and production techniques to the continent, as well as enabling the local markets to access better-quality ceramic products," he says.

Barely six months after the establishment of the first production line, Managing Director Ruiqin Li says demand exceeds supply and plans are underway for the launch of another production line.

The initial production line has a daily capacity of 28,500 square meters and the second is expected to have a daily output of 30,000 sq m. There are also plans for a third production line, which is expected to see the company offering more tile varieties, like trendy sizes and patterns, in order to meet huge demand.

"With two operational production lines, we will reach a scale of more than 20 million square meters per year. There is a huge demand for ceramic tiles in Kenya, with an increase of 15 to 20 percent per year," says Li.

Currently, Twyford has the largest ceramics factory in East Africa and, according to Li, it controls 60 percent of market share in Kenya.

He says the company plans to invest $70 million in its expansion plans and has so far invested $31 million.

Zhong says the use of advanced equipment, as well as sourcing raw materials locally, has given the company a competitive edge.

"Our biggest advantage is the use of advanced equipment, with a 275 meter long kiln whose firing temperature is 1,170C.With the better sintering (compacting) temperature and density, the overall quality of our tile body is higher than that of our competitors," he says.

The company also boasts the largest tonnage press in Kenya - the 2100T. Zhong says this is one of the critical factors for tile quality.

The company has adopted international advanced technology for glazing and ink-jets, making quality far better.

"Using this technology, we can effectively avoid the 'glaze craze' phenomenon," he says.

By sourcing most of the raw materials locally, Zhong says the company has reduced production costs.

In an effort to transfer advanced skills to local employees, the company has set up a training center within the company premises, offering training to workers three times a week, specifically on use of the new technologies.

Allan Ogeta, human resource manager for Twyford, says the future is bright for company employees.

"Our plan is to localize human resources in the company, with most senior positions being occupied by the locals. We expect local employees to acquire as much knowledge from the mother company experts as possible," he says.

Ogeta says they are keen to partner with local universities to absorb graduates so that they can be given the opportunity to earn a living and to grow their skills.

"During phase one of the project, we had a collaboration with University of Nairobi and Kenyatta University, where we took on several graduates. We reserve positions that do not require many skills for the local community so that we can give them an opportunity to earn a living," he says.

Going forward, plans are underway to construct similar factories in Ghana and Tanzania.

edithmutethya@chinadaily.com.cn

(China Daily Africa Weekly 05/19/2017 page27)