Mohawk enters joint venture with Chinese tile company
Calhoun, Ga.-based tile manufacturer Mohawk announced it has entered into a joint venture with Chinese tile manufacturer Sanfi Ceramics in a move to expand Mohawk’s international presence.
The company said it invested a minority interest in Sanfi due to China’s strong ceramic tile market, which makes up approximately 70% of the flooring market and is 25 times larger than the U.S. tile market. The company also said it expects a year-over-year growth of 10% or more.
With the top 10 tile manufacturers in China only holding 10% of the market, Mohawk said it sees significant opportunity for expansion.
"This new business venture clearly reinforces our continued commitment to being a global manufacturer in the flooring industry. We are excited to partner with a world class company such as Sanfi," said Jeffrey Lorberbaum, Mohawk Industries chairman and CEO.
The new venture will help Sanfi invest in a new facility in Inner Mongolia with new equipment. The new facility will help Sanfi supply Northern China while also breaking into the glazed floor tile market, China’s fastest growing segment in the tile market.
"Our joining forces with Mohawk gives us access to the latest technology and a partner with a history of excellence in selling and distribution. We are eager to leverage our combined strength and expand our market presence," said Chen Xiongzai, chairman and CEO of Sanfi.
Mohawk’s brands include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile, American Olean, Unilin and Quick Step.
