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1 PAPER CODE: STUIJT20190008 Vol 1 Issue 7 - JUNE, 2019 PUBLISHED BY: WWW.STU.EDU.GH

STU INTERNATIONAL JOURNAL OF TECHNOLOGY (STUIJT) Vol 1 Issue 7 - JUNE, 2019 (ISSN 2508-0997, Online) PUBLISHED BY; WWW.STU.EDU.GH

TOWARDS A SUSTAINABLE CERAMIC INDUSTRY IN GHANA: AN ASSESSMENT

OF THE WORKING ENVIRONMENT USING FIVE FORCES INDUSTRIAL MODEL.

Samuel Nortey1

Robert Amoanyi2

Frederick E. Okai3

1, 2. Department of Industrial Art, KNUST.

3. Sunyani Technical University

ABSTRACT

This paper discussed ceramics as an industry that is capable of improving Ghana’s economy and

providing direct and indirect employment, and penetrating the international market. The working

environments of the companies within the local industry were analysed using the Porter’s Five

Forces Industrial Model which revealed that the Ghanaian Ceramic Companies are competitively

weak in the areas of exports, and not able to compete favourably with new entrants, although,

strong in the area of raw materials and resource inputs. Study showed that the challenges within

the industry can be nipped in the bud if academia, industry and government work indivisibly.

Keywords: Ceramic Industry, Development; Five Forces Industrial Model.

INTRODUCTION

The ceramic industry is essential for the development and growth of any economy since its products

are indispensable in every industry. Nortey et al., (2013) intimated that Ghana in its formative

stage, industrialisation cannot overlook the importance of the ceramic industry. Ceramic materials

are widely applied not only in the manufacturing industry but also in the construction, health,

agricultural, oil and gas sectors. Ceramic materials such as clay have high wear and corrosive

resistance, good compressive strength, volume resistivity, and modulus of elasticity. Ghana is

endowed with huge deposits of raw materials such as clay, feldspar, oxides that are in commercial

quantities in almost every region (Kesse, 1995). These clay deposits which come with several

geotechnical properties could be used for the production of structural, sanitary, earthenware and in

the production of refractories for the oil and gas industries. Ghana was exporting clay products to

neighbouring countries such as Nigeria, and Ivory Coast. Ghanaian potters also supplied the table



ware used to serve dignitaries at the Peduase Lodge, the Christiansburg Castle and other high

official residencies in the country. These were the periods when the Saltpond Ceramics Factory in

the Central Region of Ghana was producing almost every product from table ware, structural

products to sanitary products. The Ceramic Section of the Kwame Nkrumah University of Science

and Technology (KNUST) and Saltpond Ceramics Factory over the years did provide services

including the supply of items such as oven and table ware comprising tea sets, plates, bowls and

decorative pieces such as fountains and murals to the Peduase Lodge, The State House, the

Christiansburg Castle and other governmental institutions. These activities kept the academic

institution and the industry vibrant (Daily Graphic, 2003)

Such a viable company producing all kinds of ceramic products has been out of production for over

a decade. There have been several attempts at reviving the Saltpond Ceramics Factory without

success (Turkson, 2008, p.7). Governments have made promises of establishing ceramic firms to

produce bricks and tiles, however, these promises have not been fulfilled. Perhaps, the working

environments have not been favourable enough to help assist in the development and sustainability

of the industry. The assessment of the industry is therefore, imperative if the nation indeed wants

to achieve sustainable development goals.

In Ghana, the ceramic industry is known to encompass pottery and ceramic technology.

Traditionally, the industry was largely about pottery with female dominance in workforce (Osei,

1971; Gooselain, 2000) and heavily tied down to certain religious and cultural beliefs about clay.

These superstitions coupled with other technological challenges gradually crippled the industry in

Ghana.

Tomlinson (2015) revealed that the ceramic industry of Stoke On Trent in England employed more

than 100,000 people, and in 1979 around 52,700 people worked in the ceramic factories that

dominated the city’s industrial landscape. Since then, the UK’s industry experienced a long decline

as recession and globalisation took their toll. Several high-profile factories were closed down in

Stoke On Trent and in the 1990s some manufacturers outsourced production to South-East Asia as

firms sought to take advantage of lower labour costs (Khan, 2009).

Jahan (2010) revealed that Bangladesh (which had serious limitations due to availability of local

raw materials) and India have developed their ceramic industries which they are contributing

significantly to the growth of their economies. According to Jahan (2010) the Bangladesh ceramic

industry has become the building block of the construction and housing sector and is contributing



to the economic growth through export earnings, foreign exchange savings and employment

generation. Johan (2010) assessed the working environment of the industry in Bangladesh and the

findings revealed inhibiting factors such as scarcity of raw materials. Interestingly, in Ghana, there

is abundance of raw materials. However, Nortey, et al, (2017) noted that many are quitting working

in the industry. With the availability of raw materials, cheap labour and development of technical

know-how, the Ghanaian ceramic industry should be on the edge of significant development.

The Daily Graphic of 25th March 2003 reported that the Saltpond Ceramics industry, which was

set up to produce earthenware products such as plates, cups, sanitary ware, floor and wall tiles as

well as porcelain insulators for electric poles, was having a very stiff competition from imported

products. The company, which had the capacity to produce about 50 percent of the total market

demand for ceramic products in Ghana, is now out of production. With staff strength of 200 at the

inception of the company in 1973, high production cost, high taxation and a fall in demand for its

products have been the bane of the company’s challenges. The cost of using glaze as a finishing

and imported Plaster of Paris (P.O.P) moulds was very high and this affected the cost of production.

The report noted that, most of the plants at Saltpond Ceramics were idle, and that the long kiln that

can dry and fire about 20,000 tonnes of hardware was out of use. This obviously translated into

low production.

This study therefore, focused attention on the Ghanaian ceramic industry by doing an assessment

of the working environments using the Porter’s industrial model.

METHODOLOGY

The study adopted the descriptive research method under the qualitative research design. The

method enabled the study to determine, describe or identify the situation regarding the working

environment within the ceramic industry (Ethridge, 2004), and also brought to bear the current

issues or challenges within the industry through a systematic process of data collection. This

ensured that the limitations to the sustainability of the industry are identified and well addressed

(Fox & Bavat, 2007).

Data collection was mainly done through interviews, focus group discussions and observations of

activities and production within ceramic companies and pottery centres in Ghana. Ceramica

Tamakloe in Accra, Ekem Ceramics, and Saltpond Ceramics in the Central Region, Vicalex in

Ashanti Region, C & M Bricks and Tile in the Brong Ahafo Region were selected for the study.



These companies were selected because they had been in production for over 20 years and

therefore, were capable of providing enough information on the working environments within the

industry. Other pottery centres in Sirigu (Northern Region), Vume (Volta Region), Afari and

Mfensi (Ashanti Region), Tanoso (Brong Ahafo Region) were also sampled to provide experiences

on the pottery sector of the industry. The interviews and the focus group discussions were very

formal and were conducted using well formulated interview guides. Questions were on the

company’s performance to stiffer competition from substitute materials, raw materials and

technical know-how, and sustainability of products. Both interviews and focus group discussions

gave the results needed. The limitation of the study was that there is no data on the Ghanaian

ceramic industry regarding imports, exports, and contribution to Gross Domestic Product. All

efforts to retrieve such data proved futile. In this backdrop, observation was used to triangulate the

findings from interview and focus group discussions. The study, therefore, adopted Porter’s

Industrial Model to assess the working environment within the Ghanaian Ceramic Industry.

DETERMINATION OF MODEL

In order to effectively assess the challenges of Ghana’s Ceramic Industry and understand the actual

situation on the ground, the Michael Porter’s (1980) Five Forces Model was adopted to analyse the

industry’s working conditions and environment. Thompson et al., (2007) revealed that the vibrancy

of an industry is defined by factors such as market size and growth rate, number of rivals, scope of

competitive rivalry, number of buyers, degree of product differentiation, innovation, supply and

demand and technological change.

The idea of Thompson et al., (2007) is definitely hinged on Michael Porter’s model which gives

vivid insight that the competitive strategy of companies within an industry should be based on an

understanding of the structure of the industry and its degree of adaptation to change.

For the Ghanaian Ceramic Industry to become viable and compete favourably with the foreign

companies, there is the need to assess the companies within the Ghanaian industry by diagnosing

their competitiveness in order to understand their limitations. This will inform the crafting of

strategies to help develop the industry to provide employment and attract foreign investment.

The study therefore, adopted the Porter’s Five Forces Model (Porter, 1980; Thompson, et al, 2007)

as shown on Fig. 1. The first on the model looks at rivalry among the competing companies for

better market, position, increased sales and market share. The second on the model is the



competitive pressure from firms outside the industry offering substitute products. The third on the

model is the supplies of raw materials, parts components or other resource inputs. The fourth on

the model is on the pressures from the bargaining power of the buyer and seller collaborations. The

model five is the potential of new entrants.

Fig. 1: Porter’s model on analysing industrial working environments.

Source: Thompson et al. (2007).

Ceramica Tamakloe

Ceramica Tamakloe (CT) is a ceramic company in Ghana that started producing glazed tableware

for local and foreign markets. The company found itself with big repeated orders from the large

US retailers such as Pier One Imports and from smaller privately-held importers in the US and

Europe. Its merchandise ranged from decorative plates to candle holders to flowerpots, often

decorated with “Adinkra” symbols, a popular Ghanaian design motif. With the present equipment

and production capacity, CT is producing 14,000 square Metres of terracotta wall tiles and over



3,000 water filters every month. Currently they produce Clay bricks, Terracotta Wall Tiles and

Water Filters. The company uses mechanised machinery such as kilns, pug mills, plunger, etc.

Ekem Ceramics

Ekem Ceramics also started with decorative pots, tableware and giftware. Currently, Ekem

Ceramics is producing assay fire crucibles, gyapa linners, ceramic pots and vases, sika mukyia, and

gyapa coal pot (different kinds of improved cooking stoves). Ekem Ceramics is currently in

production at Winneba in the Central Region and now specialis ed in the production of crucibles

for the mining and oil industries.

Vicalex Bricks and Tile Company

Vicalex Brick & Tile Company (VBT) is dedicated to producing high quality diversified brick and

tile products. Ultimately their goal is to be a major contributor to the development of a modern

housing industry nation-wide emphasizing the use of locally manufactured building products.

Vicalex uses mechanized machinery and currently are into the production of planters in addition to

the bricks and tiles. The factory is located very close to a clay site.

Figure 2: Extruding perforated bricks at Vicalex. Figure 3: Fired bricks at Vicalex.

Source: Field study (2018). Source: Field study (2018).



Figure 4: Produced sun screen at Vicalex. Figure 5: Fired cladding tiles.


C and M Clay Products Limited

The company is located at Tanoso, near Sunyani in the Brong Ahafo Region of Ghana. Like

Vicalex, C & M produces hollow bricks, facial tiles, solid bricks, and sun screens. Situated close

to a secondary clay deposit, C & M operates a mechanised production system. Firing of products

is limited to wood firing technology.



Figure 6: Material processing plant at C&M. Figure 7: Fired products at C&M.


Pottery Sector of the Industry

With regard to the pottery, the industry has pockets of individuals or small groups producing

earthenware bowls, cups and decorative pieces at Tanoso in the Brong Ahafo Region, Nkawkaw

municipality in the Eastern Region of Ghana, Mfensi, Afari, Pankrono and Fomena in the Ashanti

Region of Ghana. There are also the Vume Pottery Centre and Kpando Pottery Centre in the Volta

Region of Ghana, and Sirigu Pottery Centre in the Northern Region. However, even in that aspect

of the industry, there has been a deep decline in their activities. Nortey, Asiamoaso and Okai (2017)

revealed that, the profession in Ghana is no more rewarding and only few are practising on a

subsistent basis. Various observations and interactions with these potters at their centres appear

that middlemen do take advantage of them making more profit from the sale of pottery products

than the potters who produce them. There seem to be a big gap between them and the international

buyers and tourists.

Competitiveness of the Local and Foreign Industries

The influx of imported ceramic products in most countries such as Ghana has come with lots of

competition. The local industry faces a fierce task on how to compete favourably with ceramic

products and substitutes from China, Italy and Spain. The local companies such as Ceramica



Tamakloe and Vicalex are struggling to compete with the supply from foreign ones in the area of

quality and low prices particularly, the terracotta wall tiles. Significantly, most tiles used in the

building industry in Ghana are imported, indicating that the local companies have not been able to

capture the market. Vicalex Bricks and Tile Company at Mfensi appear to be doing well in the

bricks production sector. In that sector, the rivalry among the local companies is not keen as they

enjoy a bit of monopoly in the production of bricks. This perhaps, is due to lack of low importation

of bricks into Ghana.

There are competitive rivalries in the area of pottery. The Ghanaian industry is saturated with the

production of earthenware bowls, pots for domestic use and ceramic decorative artefacts imported

from China and Europe. Although there is competitive rivalry amongst the local companies

producing these products, the Chinese ceramic ware appears to be capturing the market because

they are cheaper and easily accessible. It is, therefore, safe to assert that the Ghanaian Ceramic

Industry is weak to competitive rivalry from outside apart from the bricks production section that

is enjoying low competition but even with such an advantage they are not into exportation.

Industries offering substitute products

Product substitutes are becoming a major concern for many industries and the Ghanaian Ceramic

Industry is not an exception. Traditionally, the domestic and culinary industries demanded for

earthenware ceramic products. Ceramic plates, bowls, cups were in high demand by “chop bars”

(local eating places) but currently the demand for low-priced, attractive and convenient substitutes

of ceramic tableware such as glass, aluminum and more commonly the plastic ware are drawing

significant profit for the thriving domestic market for crockery (Jahan, 2010).

Nevertheless, the ceramic industry can boast of still having the market for customers yearning for

traditional artefacts. What this means is that, there must be design revision and the spurring of

innovation in the form of product design (Nortey, 2013).

Supply of raw materials, components and resource inputs

The Ghanaian ceramic industry is endowed with ceramic raw material deposits which abound in

almost every region of the country. From Greater Accra through to West and Central Regions,

Brong Ahafo and the Northern parts of the country, there is evidence of clay deposits (ball clay,

refractory clays), feldspar, silica, kaolin, bauxite, manganese, the colouring oxides, to mention a



few. It is worthy to mention that with the availability of these raw materials; about 45% of

production costs have been taken care of implying that cost of product would be competitively low.

This shows that Ghana does not need to import raw materials but rather can be a net exporter of

raw materials to bring in foreign exchange. In terms of raw materials, the industry is blessed with

deposits; however, there is a challenge of processing these materials for export.

Bargaining power of buyer and suppliers

Buyers in the pottery sector have much bargaining power in negotiating the prices of the products.

In the pottery sector especially in Tanoso, Mfensi, Afari, Vume, Kpando and Sirigu centres, the

potters explained that because demand is low, the buyers tend to have a slight edge over producers

in pricing. In this case, the suppliers prefer to take the job in contract form rather than producing

before pricing. This option enables them to make some profit as wares produced this way move

faster. They always keep in mind that buyers are always quick to switch to other suppliers because

of competitive pricing.

In the areas of technical ceramics and technology, the Ghanaian industry has not been successful

in making a strong mark on the international market apart from exports from Ceramica Tamakloe

whose authentic African designs resonate with many western consumers and allow a premium

price over similar mass-produced merchandise. Since 2003, Ceramica Tamakloe has invested in

equipment to produce architectural ceramics namely terracotta wall tiles, clay roof tiles or bamboo

roofing tiles, bricks and other products. Around the same time, Ceramica Tamakloe, along with

partners, started production of Ceramic Water Filters and now exporting terracotta tiles. However,

it is expedient to note that these foreign buyers have some sort of bargaining power strong enough

to lower the price of the products they want to buy.

There are also individual ceramic artist such as James Kofi Amoah, K. K. Obroni, and Kofi Asante

who exhibited their works in Germany, Netherlands, U.S.A and other ceramic technologists such

as Joe Nsiah, John Asare and P. S. Kwawukume who have been involved in the areas of building

ceramic kilns and repairing industrial boilers in Ghana, Nigeria and other neighbouring countries.

These services are gradually making the industry have a share on the international markets and

therefore, with increased production and developed technical know-how, the bargaining power of

buyers will be weakening.



Potential of new entrants

The construction industry is growing in Ghana and it is expected that it rises with the ceramic

industry. The investment climate in Ghana is attractive and many would appreciate entering the

ceramic industry which has the potential of developing to the nation’s benefit if conditions are

favourable. In this vein, Sentuo Steel of China has arranged to open 80 million US Dollar ceramic

tiles factory in Ghana by the end of 2017. It is presumed that the factory would provide at least 700

jobs. Nonetheless, the folding up of many small and medium enterprises due to low demand and

constant power outage are still a challenge (Nortey, Asiamoaso & Okai, 2017).

With the gradual increase in the use of ceramic finishes, ceramic tiles and bricks, the industry is

significantly being noticed and has the potential of attracting new entrants. However, as much as

this momentum would rely on the existing companies within the sector, the government has a great

deal of role to play. The big companies within the industry should be able to pull up the small and

medium enterprises by working on joint projects and facilitate logistics support.

DISCUSSION

Limitations

Lack of professional identity in Ghana

This paper purports that lack of professional identity is a major challenge to the growth of the

ceramic industry in Ghana. Ceramics or pottery as most people prefer to call it has been a profession

many look down upon basically because many feel much intellectual capacity is not required in its

practice. Many see most of the products as more inclined to pottery (clay products fired below or

up to 650º C) than the structural, refractories and ceramics for engineering. In this backdrop, the

technological development of ceramics in Ghana has been insignificant and has only evolved

around table and decorative wares.

Limited technological research and low design innovation

Research provides the opportunity for growth since it reveals how one can improve upon the

present. In this vein there is the need to improve research aimed at blending the art and

technological aspect of ceramics. Cross (2002) intimated that technology and research-led

innovation are the key factors in the long-term growth of an industry, where they are needed in

both design and manufacturing.



While the use of design can enable the ceramist to differentiate product in the market and attract

higher premiums, technology can enhance productivity and the quality of ceramic products. There

is, therefore, the need to look at the concept of design within the industry. The designs currently

found on the market are too monotonous and appear not to be attractive and appealing to the end

users. For example, the earthenware bowls and cups are of same designs cutting across the various

regions. The decorative pieces are all spherical in forms and very monotonous. Abraham (2014)

affirms that communication between the work and the user must be the universal attribute of

designing. Nortey, Okai and Bodjawah (2013), calls for design interventions and in-depth

exploration, analysis, spontaneous play and association, design development and revision of

products. Fendler (2013) states that, design must be informational and should focus on the end-

user. This means that ceramists and practitioners within the industry must be artists (making

statements), technologists (innovations) and designers (thinking of the end user) in order to make

the industry very functional to the society. Innovation in the ceramic industry is needed in order to

meet the changing demands and tastes of the end user (Klapwijk, et al., 2004).

Non-development of Material Processing Companies

Ghana as a nation is endowed with abundance of raw materials all over the country. There is

limestone deposit found in Oterkpolu in the Eastern Region. Limestone generally acts as flux and

also makes a composition more stable, reliable and less sensitive to odd variables in the kiln

(Kwawukume et al., 2011). There is also kaolinitic material deposit located near a village called

Teleku Bokazzo in the Western Region. Kaolin provides alumina which controls the flow of the

melt, preventing it from running off the ware and also from crystallisation to give a body good

chemical stability. It is thus, called an intermediate oxide because it helps build strong chemical

links between fluxes and silica.

Sand is another ceramic material readily available in Ghana. However, sand is found in large

quantities in Atoabo in the Western Region. There is another important material in ceramics which

occurs naturally and extensively as pink feldspars in pegmatite veins cutting across Birimian

granites, granodiorites and migmatites in Nsawam in the Eastern Region and Moree in the Central

Region. Feldspar acts as the main vitrifying agent and the alkalis in the feldspar (calcium oxide,

potassium oxide, and sodium oxide) act as a flux, lowering the melting temperature of a ceramic

composition.

http://en.wikipedia.org/wiki/Calcium_oxide

http://en.wikipedia.org/wiki/Potassium_oxide

http://en.wikipedia.org/wiki/Sodium_oxide



Another material worth mentioning is Manganese Carbonate deposited 60 km north of Takoradi at

Nsuta, close to Tarkwa in the Wassa area. Manganese oxide is a colourant used in bodies and

glazes, producing blacks, browns, and purples. There are also soil pigments (yellow ochre) that

occur as fine grained residual soils of weathered Birimian rocks along the Kumasi - Sunyani road

and Dunkwa-on-Offin - Prestea Road. Yellow ochre is a natural mineral consisting of silica and

clay owing its colour to an iron oxyhydroxide mineral, goethite.

With the mentioning of these few materials, it is very discouraging to note that there is not a single

material processing company in Ghana that can process these materials and make them ready for

the industry. It is said that one company was established in Ghana processing feldspar but collapsed

because the demand for the product in the industry was low.

THE WAY FORWARD

The way forward for this important industry calls for concerted efforts from the industry players:

academia, practitioners, service providers, and the governmental agencies to sustain the industry

and make it a value addition one. The following practical steps should be taken:

Academia and Research Institutions

The teaching and research institutions such as Kwame Nkrumah University of Science and

Technology, Council for Scientific and Industrial Research have a great deal of role to play

One major challenge within the industry has been a poor link between academia and the industry

players. This poor link is contributing to a slow development of Ghanaian ceramic products. It is

very disturbing that most of the research works carried out by the tertiary institutions are not

supported by the industry. Perhaps this has been so due to marketability of academic research

findings or the industry not providing their industrial problems to academia to work on. There is

the need for constant research and development of ceramic materials especially on how the

materials could be utilised in the standardisation of establishment of the industry. This development

could be realised by the following:

1. The Academia in collaborations with the Industry and government should institute a

Biennial Ceramic Fair where products from the industry are displayed and introduced to



the public. This biennial fair could be in rotation in different regions of the country and

should have themes and solutions to the challenges of previous celebrations.

2. There is the expediency for the tightening of Networks and Collaborations amongst

academia and more especially the companies within the industry. For example, the

established companies such as Ekem Ceramics, Tamakloe Ceramics and Vicalex can share

ideas and support each other in the area of machinery and technical assistance. These

established companies can establish a business incubating unit where they offer a hand for

the small scale companies to thrive.

3. The development of small business models for traditional potters that target tourists and

international buyers. This could be an avenue of progress for small-scale producers. Of

course it would need to be an ethical and fair-trade model to ensure that traditional potters

are not taken advantage of by middle men.

The Industrial Companies and Players

One cannot leave out the companies within the industry when addressing challenges of the industry.

In as much as government, academia and individuals, there are certain requirements to be met or

developed by these companies and players.

1. There is the need for the companies to develop a brand for their products. In this current

age of where there is influx of ceramic products from Asia especially China, one needs a

strategy to compete favourably in the market and one way of doing that is keeping a

standard brand. This identity could be kept on our decorative pieces and giftware. Being

Eurocentric on our designs would not help.

2. There is also the need to place emphasis on marketing of the products through the several

media available and effective use of information technology.

Government and Governmental Agencies

The government and other governmental agencies should assist in the following:

1. Establishment of the Ceramic Society of Ghana. This society should be empowered to

periodically review the activities of the industry by discussing the challenges therein and

the way forward and submitting same to the government through the Ministry.



2. The government should promote the use of ceramic materials and products such as bricks

and tiles in the construction industries. For example, the affordable housing project by the

government could have been built with bricks. Also, some of the governmental institutions

such as schools and hospitals should be built with bricks and this obviously would urge on

individuals to patronise ceramic products.

3. The government should have a policy to give incentives to ceramic exporters to encourage

them to be exporting both finished products and raw materials since the products from the

industry can compete favourably with those on the international market. China gives 22.5

percent to ceramic exporters. Such an incentive will encourage the companies to grow and

would bring in a lot of foreign exchange.

4. The issue of constant supply of power is very crucial to the realisation of constant

production. When power is not constant it brings about high cost of production which

obviously will increase the price of the product. Government should make it a must to

always provide constant power.

5. In addition, the government should ensure that the few foreign companies operating in

Ghana have a policy of recruiting local expertise. This should cover both skilled and

unskilled ceramic workers. In other words, the authority in charge should ensure that local

content policy is adhered to.

Conclusion

Ghana should be on the cusp of significant development in ceramics and industry considering the

availability of raw materials and technical know-how for the industry to thrive. The Porter’s Five

Forces Industrial model has shown that with the influx of industries providing other substitutes and

the threats from new entrants, there is the need to give attention to the industry which still has the

potential to provide direct and indirect employment, foreign exchange and make a giant mark on

the international market. The recommendations made by the paper if well implemented by the

various stakeholders such as the academia, the industry and government, the industry that appears

to be crippled would blossom and play a significant role in job creation and in livelihood of many.



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