Jan 6 2011
China Ceramics Co., Ltd. (Nasdaq: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and interior flooring and design in residential and commercial buildings, today announced that it has completed the first stage of enhancements at its Hengda facility, increasing its capacity to 32.2 million square meters per year, and bringing the Company's total capacity at its two facilities to 42.2 million square meters per year.
The Company expects to complete the second phase of its Hengdali facility expansion in the first quarter of 2011, which will add an additional 14 million square meters of annual capacity, bringing total Company-wide capacity to 56.2 million squared meters by the end of the first quarter of 2011, up approximately 48% from its capacity at the beginning of 2010.
The Company expects to invest an additional $14 million at its Hengda facility during 2011 to further expand its capacity by 4.6 million square meters by 2012.The third phase of expansion at the Hengdali facility is also expected to be completed by the end of 2011 and will add 18 million square meters of annual capacity at a cost of approximately $20 million. Overall, the Company expects to have a capacity of approximately 78.8 million square meters in 2012, representing a 107% increase over its capacity at the beginning of 2010.
"We are pleased to announce the completion of the first phase of expansion of our Hengda facility and we look forward to announce the completion of the second phase of expansion of our Hengdali facility in the first quarter of 2011," stated Mr. Jiadong Huang, Chief Executive Officer of China Ceramics. "We remain confident in the outlook for the Chinese economy in general and the construction materials industry in particular over the foreseeable future. Based on our existing orders as well as feedback from our customers, we expect that our capacity expansion in the quarters ahead will be fully absorbed by increased demand for our products."