UMI TO INCREASE MOSAIC EXPORT FOCUS NEXT YEAR

       Union Mosaic Industry next year will increase its mosaic-tile export volume to cash in on its Asian competitors having slowed down or shut production after facing high labour costs.
       The company current exports 15 per cent of its production of ceramic tiles and mosaic, but the proportion will be boosted next year for mosaic.
       UMI chairman Paweena Laowiwatwong said yesterday that the production slowdown or shutdown of some mosaic manufacturers in Asia had presented the company with an opportunity to win more overseas orders.
       She said mosaic production was more labour intensive than ceramic-tile production, whereas the market was smaller. This had led to the closure of some tile and mosaic-makers.
       Many countries in the Middle East and other parts of Asia still offer demand for mosaic tiling , however.
       UMI's mosaic sales account for 6-7 per cent of its revenue, she said. Although demand is not high, the company still produces mosaic because it offers a better margin than ceramic tiles.
       She said the export outlook for its range next year should be brighter than this year's because of the global market recovery. UMI expects to enjoy export growth of 10 to 20 per cent. This year's exports have dropped by 10 per cent due to the economic crisis.
       UMI yesterday reported a third-quarter net profit of Bt61 million in the same perioed last year. Its net profit in the first nine months was Bt95.54 million, compared with a loss of Bt34.46 million over the same period last year.
       The company expects to turn a profit this year because of its focus on cost reduction and high-margin product development, Paweena said. It posted a loss of Bt115.23 million last year.
       She said the company targeted sales growth next year at 5 to 10 per cent, from expected revenue of Bt2.1 billion this year.
       "If we can maintain our gross profit margin at 20 per cent and enjoy stable oil and natural-gas prices, we believe the company will achieve sales growth," she added.
       The company's board is considering paying a diveidend to stakeholders for the first time in four years, she said.
       Paweena said the Thai Khemkhaeng project was a positive factor driving demand for tiling next year.
       UMI plans to run at 85-per-cent capacity in response the expected rise in domestic demand. It currently operates at 75 per cent.