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[June 2008]
Duravit Takes Majority Stake in Tunisian Sanitaryware Maker
Duravit AG has taken a 51% share in the Tunisian ceramic company Manufacture Tunisienne de Céramiques (MTC) and its brand Artica. MTC was founded in 1965 and has a production facility in Bizerte, north-west of Tunis, where it started making ceramic sanitaryware in 1967. The company was privatised and restructured in 2001.
After the modernisation of the production facilities and the introduction of new ranges, the brothers Lassaad and Raf Kilani, members of the family who owned the company, believed that a strategic alliance with a larger company would be the most reliable way of further developing MTC both in Tunisia and internationally. This is where Duravit came in. The two brothers were impressed by the atmosphere during the negotiations and the strength of the Duravit brand. “We are proud to be associated with this brand,” they said. The takeover agreement still has to be approved by the Tunisian government.
“The basic decision to enter into a partnership was taken within two hours,” said Franz Kook, Duravit board Chairman. At the end of the first meeting, he continued, the affinities between the two companies were already evident. “This mutual liking was reinforced after analyses showed the potential benefits for both sides.” Mr Kook speaks of an ‘internal logic’ in both companies.
For Duravit, part of this logic is the fact that it is not yet really present in the region as a bathroom supplier. “We are hoping that the participation will enable us to develop our position not only on the Tunisian market but also in neighbouring North African countries,” said Franz Kook. Moreover, the strong growth Duravit is experiencing means that it is always on the lookout for further capacities. Even if the majority of products will be sold in the local market, capacities could also be used to serve other markets. The logic for the Tunisians lies in the technical know-how that Duravit can provide through its 190 years of experience in ceramics.
MTC will benefit from the Duravit range, which will supplement the Artica products. Duravit introduces one or two new ranges every year and claims to be practically unique in helping to diversify the sanitary ceramics market and cover all price and taste categories. MTC will also be able to profit from public awareness of the Duravit brand, which will help it become more competitive in international markets and safeguard the future.
The Duravit designer brand is sold in over 80 countries and the various awards in Germany and other countries confirm the role played by the company in sanitaryware product design. Duravit sees itself not only as an innovator but also increasingly as a provider of experience and wellness bathrooms, an area with great future growth potential that MTC will also be able to benefit from. The Duravit management method is based on consensus; the company attaches great importance to the role played by local partners in the management of associated companies. In reflection of this policy, Lassaad Kilani will become Managing Director of the new holding.
Intensive cooperation has already begun and is progressing steadily, not least since Duravit already has a French-speaking communications channel through its production facility in Bischwiller, which it acquired in 1984. Staff of both companies are highly motivated and the first joint presentation took place in May at the ‘Carthage’ International Building Exhibition. Further investments in the site and an enlargement of production capacities are planned for the future. In addition to the Artica brand, Duravit products will also be produced. The company is to be renamed Duravit Tunisia.
The systematic strategy of moving from being an exporter to a local supplier via local manufacturers has already been successfully implemented on a number of occasions – particularly in Egypt. Duravit has considerably strengthened its position in Egypt, North Africa and the Middle East through its production facilities in Egypt and is today one of the most popular brands in the region, a fact that is reflected in its successful project business. The latest example of this success is the Burj Dubai Tower, currently the highest building in the world. When it is completed it will be over 700 metres high. Duravit is supplying over 1,000 barrel-shaped vanity units by Philippe Starck for the deluxe skyscraper, as well as 4,000 WCs and bidets and over 1,600 bathtubs and whirlpools. With a base in Tunisia, Duravit is hoping that this huge order will open up further doors in the region.
www.duravit.com
ENDS