China Ceramics announces plans to enter Southeast Asia market
China Ceramics announced its plans to enter the ceramic tile market in Southeast Asia. While this effort is in its early stages, the company is already negotiating with customers in its first target market of Malaysia. The company plans to capitalize upon the increased level of building construction in Southeast Asia which is due in part to China's Belt and Road Initiative. The company's CEO Huang Meishuang, will oversee the execution of this expansion.The company plans to introduce specialized products into the Southeast Asia market that are suitable for the region, including its recently announced new 'cooling' ceramic tile product. The company also plans to slightly modify certain products that it currently sells into the southern region of China due its similarity with the hot and humid climate of Southeast Asia. The company anticipates that there will be modest capital expenditures associated with this expansion strategy with most of the capital outlays directed towards its marketing team and securing additional distributors and agents. The company foresees this as an opportunity to utilize its currently unused production capacity as it enters a market with an estimated population of approximately 660M people. The company anticipates that it will deploy this strategy in the first half of 2020.