Ceramic Tiles
The Philippine ceramic tile industry envisions itself to have efficient, competitive and environment-friendly manufacturers with sustainable and profitable operations, contributing to society and to the country's economic growth.
It seeks to maintain and sustain its competitiveness, its products to be the preferred choice of local consumers, level up the industry's concern for the environment while ensuring its profitability.
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About Ceramic Tiles
The Philippine ceramic tile industry currently consists of four major local players in the market, namely Mariwasa Siam Ceramics, Inc. (Mariwasa Tiles), Formosa Ceramic Tiles Manufacturing Corp. (Ten Zen Tiles), Eurotiles Industrial Corp. (Eurotiles), and Lepanto Ceramics, Inc. (Lepanto Tiles). The industry’s umbrella association is the Ceramic Tile Manufacturers’ Association (CTMA) – a member of the international group Ceramic Industry Club of ASEAN (CICA).
The industry has an estimated total installed capacity of around thirty (30) million square meters per annum. However, the industry’s market share is less than 50% of the total tile market, due to the influx and proliferation of imported tiles. But with the continued growth of the construction sector, abundant opportunities remain for the industry particularly given that the Philippine economy is projected to be the 16th largest economy in the world by 2050.
The industry faces many challenges, foremost among which is the uncompetitive cost of local players compared to their foreign counterparts. Local firms have higher costs as a result of high fuel and power cost, the limited local source of and high raw material cost, high repair and maintenance cost of aging machinery, and high domestic inland freight costs. The competition presented by the entry of imported ceramic tiles is heightened by their non-compliance to product standards.
The industry is directly employing over 2,000 workers and several thousand more by industries that are directly and indirectly linked to it.
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Roadmap
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Policies
BPS Product Certification Scheme
The DTI’s Bureau of Product Standards lists ceramic tiles as among the products for mandatory certification under mechanical/building and construction materials.
The certification of ceramic tiles are guided by the Philippine Standard (PS) Quality and/or Safety Certification Mark Scheme and the implementing guidelines for the mandatory certification of ceramic tiles.
Imports of ceramic tiles must undergo the Import Commodity Clearance (ICC) certification scheme, through which ICCs are issued to importers whose shipments have been found to conform to the requirements of the relevant Philippine National Standards or acceptable international or foreign standards, and be guided by the operations manual for the issuance of the ICC on imported ceramic tiles.
PNS for Ceramic Tiles
The mandatory Philippine National Standard for Ceramic Tiles specifies the rules and regulations on product certification under PNS ISO 13006:2007, which defines terms and establishes classifications, characteristics, and marking for ceramic tiles of the best commercial quality. It applies to both extruded tiles and dry-pressed tiles.
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Programs
Industry Development Program
The ceramic tiles industry technical working group (TWG) meetings are convened to implement the ceramic tile industry roadmap’s goals and strategies. The TWG includes the Ceramic Tiles Manufacturers Association (CTMA), DTI offices such as the Regional Operations Group, Bureau of Import Services (BIS), Bureau of Philippine Standards (BPS), and the Department of Science and Technology – Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD).
Among the initiatives of the TWG concern the following:
- Trade Remedies Fund (TRF). A letter requesting the DBM for the reversal of the amount collected for the sector in the years that the Trust Fund has not yet been created. The industry aims to utilize the reversed fund for modernization purposes.
- Mandatory certification. The industry wants to maintain ceramic tiles among the products for mandatory certification by the government, in the face of cheaper and lower quality imported tiles from China. A letter requesting for its retention has been sent to the DTI-BPS. In relation, the Bureau of Customs (BOC) is also requested to destroy seized non-compliant imported tiles, instead of being auctioned and finding their way into the local market. The TWG is also seeking clarification from the DTI-BPS regarding the policy treatment of items that failed mandatory standard testing.
- Anti-smuggling. An action plan on anti-smuggling for ceramic tiles – covering the pre- to post-entry stages of imported products – was developed and adopted by the TWG, and involves the DTI Bureau of Import Services (BIS), BPS, and BOC. With their continuous coordination, the industry is able to identify and monitor the activities of technical smugglers.
- Domestic promotion. The TWG is working to take part in the Reverse Trade Arrangement project of the housing industry TWG, by which preferential supply arrangements are entered into between housing developers and construction materials manufacturers and associations (including ceramics) in order to reduce cost and assure markets for industries. The CTMA also agreed to join the DTI Bureau of Domestic Trade activities in 2014 and 2015.
- Human resource development. The TWG is coordinating with CHED and DOST on address the need for ceramic engineers in the country. It is noted that only Mapua and Mindanao State University produce these engineers.
- Cost of local clay.As part of the competitive enhancement measures, the TWG has started discussions with small-scale quarry operators and eventually provide them technical assistance to modernize their operations towards reducing the cost of local clay.
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Champions
Ceramic Tiles Manufacturers Association
c/o Mariwasa , C. Raymundo Avenue, Bo. Rosario, Pasig City
Tel.: 641-0720 / 628-3871
Fax: 628-1985
Board of Investments
385 Sen. Gil Puyat Avenue
Makati City
Tel. No.: (632) 895-3977
Email: ECDPahilan@boi.gov.ph
