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UPDATE 1-Mohawk Industries invests in Chinese ceramics firm
* Eyes share in world's largest ceramic tile market
* Sees "significant" market expansion opportunity
July 6 (Reuters) - Flooring products maker Mohawk Industries Inc (MHK.N) said it formed a joint venture with China's Sanfi Ceramics through an equity investment, as it plans to expand into the world's largest ceramic tile market.
In 2010, Mohawk expects its investment to slightly add to earnings, excluding one-time accounting charges.
Ceramic tiles are estimated to make up 70 percent or more of all flooring sold in China. The market, with anticipated growth of 10 percent or more per year, is 25 times larger in units than the U.S. ceramic tile market, Mohawk said.
The top 10 manufacturers in China, including Sanfi Ceramics, only comprise about 10 percent of the market, creating significant opportunity for expansion, Mohawk said.
Mohawk shares closed at $43.85 Tuesday on the New York Stock Exchange. (Reporting by Bijoy Koyitty in Bangalore; Editing by Don Sebastian)
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