Hamat to Shut Down Sanitary Ware Manufacturing Operations in Turkey

Manufacturing

TURKEY: Hamat's board of directors has approved the discontinuation of the company's sanitary ware manufacturing operations in Turkey, nearly a decade after establishing its production facility in the country. The operations are carried out through its subsidiary, MCP, which is responsible for the design, development, manufacturing, and sale of ceramic sanitary ware, including toilets and sinks, primarily supplying other companies within the Hamat Group. This business is reported as a separate operating segment in the company's financial statements.

The underperformance has been attributed to weak demand from the group's subsidiaries, challenges in selling products in the Turkish market following trade restrictions and the boycott of commercial activity with Israel announced by President Recep Tayyip Erdoğan, and limited success in expanding sales to international markets. In addition, Hamat continues to face intense competition from low-cost sanitary ware imports from the Far East, further weighing on the profitability of its manufacturing operations.

Source: Hamat Group