Chinese imports drive Artfil to Russia

Sighisoara-based Artfil, a manufacturer of phosphatic porcelain products, set out to expand its presence on the Eastern-European markets, as its officials say the domestic market is flooded with Chinese products. “We are planning a stronger penetration of the Eastern market for 2006. We believe the market in Russia has a special potential and that with certain precautions and protective measures we can do profitable business here,” Iosif Blaj, the general manager of the company said. Artfil is currently exporting to England, Germany and Italy primarily at the moment, as well as to Russia, Ukraine, Canada or Turkey. The domestic market, which gets 12-15% of Artfil”s output is not very profitable, the company official explains. “This industry, like other sectors, is strongly influenced by the products coming from China. The output for the domestic market can barely be sold at prices 45-50% lower than those operated on the foreign markets,” Blaj said. Artfil posted 3.7 million euro turnover in 2004, an increase of 20% on 2003. The management expects an about 3% decline in turnover this year, due to exchange rate fluctuations. ZF