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13:44
SBK HOPES TO INCREASE DECORATIVE BRICK MARKET SHARE TO 70% IN 2009

Kyiv, August 6 (Interfax-Ukraine) - CJSC with foreign investment Slobozhanska Budivelna Keramika (SBK, Kyiv), the leading brick producer in Ukraine, expects a fall in production of decorative brick by 47.5%, to 33.7 million conventional bricks, although thanks to the sliding trend on the market as a whole and better sales compared to its rivals, the company plans to increase its decorative brick market share from 45-50% to 70%.

"In 2008, we produced 64.2 million conventional decorative bricks. The projected indicator for this year is estimated at 33.7 million bricks," the head of the marketing department at the company, Serhiy Panchenko, told Interfax-Ukraine.

He said that in H1, 2009 SBK cut production by 55.5%, to 18.6 million conventional bricks year-over-year.

"Speaking about the whole market, the forecasts are distressing – all construction material markets are in free fall, including the brickware market. As for SBK, we expect to increase our market share from 45-50% to 70% thanks to better organization of sales compared to our rivals, the proper selection of marketing instruments to influence the market and the introduction of modern management systems," Panchenko said.

He said that if the first quarter was almost idle in terms of sales of decorative brick, while in April-May a jump in sales was registered.

"The peak of sales will be seen in July and August in 2009," he said.

Panchenko said that the largest consumers of SBK's products are Odesa, Kharkiv, Dnipropetrovsk and Kyiv regions and western Ukraine.

He also said that this year demand for decorative brick shifted, in particular, while earlier the key consumers were large constructors, now they are individuals.

He said that the share of decorative brick exports in the company's total sales this year would be from 15% to 20%, as it was last year.

SBK exports brick to Russia, Kazakhstan and Belarus and is considering the expansion of its export geography.

CJSC SBK was created in 1997 with the participation of the Western NIS Enterprise Fund (WNISEF, the United States), which in 2004 sold 100% of shares in the company to Austrian private firm MARA Beteilingungsverwaltungs GmbH for $13.5 million.

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