"We've started trial production and are now fine tuning the product," Tharana Thoradeniya, chief executive of Rocell Bathware told LBO. "We have a lot of designs and different models available and hope to come into the market by late June or early July."

Trials are behind schedule, having been originally set to have started late last year, but the company wanted to build up stocks before launching the new product.

"We want to ensure our retail outlets have enough stocks to sell," Thoradeniya said.

Rocell Bathware products will be sold through Royal Ceramic's network of 37 retail outlets as well as through its dealers.

Another five Royal Ceramics showrooms are under construction.

Rocell Bathware will have an initial capacity of 250,000 pieces of sanitaryware and will be the sole local competitor against up-market imported brands from Europe and East Asia.

The products will be made according designs from Italy which also supplied the plant and machinery.

"This is the only local plant of this caliber," said Thoradeniya. "We're looking at middle and upper middle bracket for our products."

The company is aiming to meet demand for more luxury type bathroom products in which design and style is considered important compared with the purely functional requirements of the traditional bathroom.

"One of the advantages we have is that we can save on the shipping cost," said Thoradeniya.

"Sanitaryware is a bulky product. If imported, it occupies a lot of space in the container. So shipping cost is significant in sanitaryware."

Thoradeniya said Royal Ceramics has started preparatory work to build its third tile factory in a new site at Kiriwaththuduwa, Homagama.

"It's a porcelain tile plant and commercial production is scheduled to start in 2010."

Thoradeniya also said the company has not been affected by the slowdown in parts of the construction market.

"We are into commercial buildings and the residential market – individual owned residential housing and gated communities. So we have not been affected by the slow down in the apartment construction business which we did not supply and which imported most of their requirements under Board of Investment concessions."

Sales of tiles remain strong and Royal Ceramics posted its highest monthly turnover and profit in December 2007, he said.

"We see no signs of a slowdown – even this month sales ok.''