Companies@UA: База компаний Украины

Kyiv, July 31 (Interfax-Ukraine) – Poland's Cersanit S.A., the country's largest tile producer, has postponed the launch of the second stage of its EUR 40 million tile and bathroom fittings plant in Chyzhovka, Zhytomyr region, tentatively until Q1, 2010, while earlier the company planned to expand the plant's capacities in 2009.

A company's representative told Interfax-Ukraine that the decision is linked with a fall in demand for tile and bathroom fittings due to the recession. The source said that if by Q1, 2010 the fall in demand for tiles had stopped, the second stage would be launched.

"Demand is falling due to the crisis. We expect that after the crisis demand will return to the old level and start growing," he said.

In fall 2008 the company launched the first stage of the plant with the capacity of one million bathroom fittings and seven million square meters of tile per year. After the launch of the second stage of the plant, its capacity would expand to two million bathroom fittings and 12 million square meters of tile per year.

The chief constructor of the plant in Zhytomyr region is Ukrainian-French Osnova-Solsif Company.

The European Bank for Reconstruction and Development (EBRD) has backed Cersanit's expansion in Ukraine with a EUR 81 million credit. Total investment in the construction of the two stages is estimated at EUR 120 million.

Cersanit also said that the company adjusted its investment policy for 2009 and put the construction of plants in Russia and Romania on hold.