For the Wall and Floor Tiles Business, the uncertainty and limited growth expectations at the beginning of the year gradually dissipated during the course of 2014. By yearend, the domestic market had begun to recover and demand to grow.
The Business responded rapidly and effectively to the improvement, exceeding the average growth rate of the industry. As a result, the upswing in the domestic market more than offset the sales decline in foreign markets, such that total sales for 2014 grew 3% year-over-year.
One of the challenges of the year was the orderly management of production capacity to adapt to new consumer demands which affected the traditional product mix. Continuous innovation, with the development and rollout of new products, has given the Wall and Floor Tiles Business more robust product lines that include large porcelanite tiles and offerings with novel properties, designs, textures and high-quality digital decorations.
The investments Grupo Lamosa has made in technology allowed it to rollout new products with industry-leading styles and applications in accordance with the latest trends. These included “Striato,” “Basaltina” and “Marino,” market leading, large-sized (60cm X 90cm and 60cm X 120cm) tiles that look like marble and natural stone. The Business also launched a wide variety of ceramic high value added products that have the appearance of wood but the superior properties of ceramic.
The continuous search for innovation and to offer products with superior properties resulted in the launch of “Slim” tiles through the high-value “Firenze” brand. These porcelain tiles are light, ultra-thin, with a thickness of three millimeters, and perfect for commercial areas and vertical residential constructions. Porcelain tiles have recently found a new use in construction: for faÇades, and this represents a source of potential growth for the Business in the institutional market.