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THURSDAY, JUNE 2, 2005

SSPONSORED SUPPLEMENT

HONG KONG’S historicalrole as a crucial link tomarkets in China willcontinue to grow as

Italian companies access theuntapped potential of themainland’s consumer markets,according to Italian financialgroups in Hong Kong.

“Relations between Italy andHong Kong have been very strong,and will continue to grow,” saidFabio de Rosa, president of theItalian Chamber of Commerceand chief of personnel at BancaIntesa in Central. “Hong Kong is afavourite place for Italians toinvest their money.”

Exports from Italy to HongKong rose 25 per cent to reachUS$3.8 billion last year, surpassingthe record of US$3.5 billion set 10years earlier.

More than 50 per cent of goodsimported from Italy – worthUS$2.8 billion – are destined forre-export to the mainland.

Italy’s imports from HongKong rose 21 per cent to US$3billion last year, surpassing theprevious record of US$2.5 billion.

Mr De Rosa said that wasmostly because goods producedin Guangdong transited throughHong Kong.

Mr De Rosa said: “Hong Kongisn’t growing as a manufacturingcentre. It’s a service country.Trade is less important thanensuring European companies see

this as a place to invest theirmoney.”

Consul-General for Hong KongGabriella Menghello said Italy hadhad a presence in the region sinceMarco Polo travelled to China inthe 13th century, and the twocultures shared common values ofwork, family and community.

Although the nation’s presencein Hong Kong is relatively small,Italy has contributed significantlyto the development of the citythrough its missionaries and,recently, through its businesscommunity.

“For us, Hong Kong is still avery important place. It is animportant financial hub, animportant trading partner ofItaly,” Ms Menghello said.

Mr De Rosa said Italiancompanies used Hong Kong tolaunch overseas products insouthern China, particularlyGuangdong and the Pearl RiverDelta, and relied on Hong Kong’sinvestment in production facilitiesin the mainland and its closepartnership with centres such asShanghai to form distributionnetworks.

Hong Kong’s simple fiscal andtax structure, efficient services andbusiness friendly policies wouldcontinue to ensure its place as agateway to China, he said.

“It’s easy to come to HongKong. It’s seen as a very friendlyplace to do business.

“Hong Kong’s success isbecause it has good infrastructure

and a good bureaucracy. I’venever seen a bureaucracy soefficient as in Hong Kong,” hesaid.

There are more than 120 Italiancompanies in Hong Kong,including a strong financial sectorconsisting of about 10 majorbanks and insurance companies,and engineering firms andconsumer product groups.

Franz Hilburger, managingdirector of Oriental BuyingServices, said the firm’sadministrative headquarters hadbeen in Hong Kong since 1994because it had an efficientgovernment and educatedpopulation and it provided goodaccess to the mainland.

The textile company buysproducts for its Italian parentcompany GruppoCoin, whichoperates more than 300department stores.

Ms Menghello said educationwas a burgeoning area in culturalrelations: 182 Hong Kong studentswill take part this year in asummer exchange programme;and a Marco Polo study-exchangeprogramme was launched inspring.

A total of 420 students in HongKong enrolled in Italian languagecourses at university this year, anincrease of 70 students over lastyear.

Professor of Italian LuigiLaudanna said: “A lot of studentslike the image of Italy, not only theculture, but the lifestyle.”

Italians cherishcity’s role asChina gatewayLong-established trade and financial ties with Hong Kong setthe stage for expansion in the mainland’s production sector

Reports by Stephanie Harrington

IN ITALY, YOU never ask yourmother what’s for dinner – itwill make her angry.But Hong Kong people are

eager to query the menus of anincreasing number of Italianrestaurants in the city offering thefamously simple but classiccuisine.

“Ten years ago, you couldcount the number of Italianrestaurants in Hong Kong on yourfingers,” said Pino Piano, directorof the Gaia Group, which ownsand operates the restaurants Gaia,Va Bene and Isola Bar+Grill.

“Now there are dozens anddozens.”

Grissini’s chef de cuisineVittorio Lucariello said Italianrestaurants have been “gettingbetter and better” since he movedto Hong Kong two years ago.

The allure of the cuisine lies inits simplicity.

Developed by the peasantry,Italian food uses seasonalingredients from the country’snine regions to create creamy ortomato-based sauces for pastas,fragrant risottos, hearty soups,pastries and gelati.

The trend of cucina molecolare(molecular cooking),experimentation with productssuch as cooking sugar at a high

temperature to derive a low-fatalternative to olive oil, may be atthe forefront of modern Italiancooking but the great chefs neverforget their origins.

“Our food was made because itwas necessary,” said PaoloTeverini, one of three master chefsvisiting Grissini restaurant at theGrand Hyatt Hong Kong hotel forits Bella Italia promotion. “Youused a small amount of

ingredients with good taste andlow cost. Simple ingredients.”

Italy’s family-oriented “cultureof the table”, as Chef Teveriniphrased it, is something thatattracts Hong Kong diners.

Lauren Morkel is director ofmarketing for Grappa’s Bar andItalian Restaurants, which has amonth-long Italian festivalpromotion.

She said many people came tothe company’s Italian-Americaneateries for a relaxed family meal.

Mr Piano imports all of hisingredients from Italy, and thereare several shops here that sellfood and beverages importedfrom the country.

Alessio Conti, an award-winning pastry chef visitingGrissini, has begun scouring Italyfor the perfect oranges and nutsfor panettone, an ItalianChristmas cake, countering atrend in Italy towards cheap mass-produced desserts.

Another visiting chef, Italianice-cream master Palmiro Bruschi,has sold world-inspired gelato athis shops in Tuscany tocomplement traditionaltechniques and flavours. He saidhe may create a mango or lycheegelato in an acknowledgement ofHong Kong’s love for Italian food.

Big appetite for culture of the table

Chef Vittorio Lucariello says Italianfood here keeps improving.

Italy ranks second to themainland for imports of clothing,accessories and footwear to HongKong. A spokeswoman for Milan-based Giorgio Armani said topItalian fashion retailers such asArmani had enjoyed dramaticgrowth at their Hong Kong outletsin the past two years, withmainland clients having asignificant impact on sales.

Benetton Group, which has itsregional headquarters in HongKong, will open 40 stores in Chinathis year, and plans to have 200outlets on the mainland by 2008.

Meanwhile the Swank Shop,which has imported Italian labelsfor 50 years, will open a store laterthis month for Italian designerRoberto Cavalli at the IFC Mall.

But David Hong Kin-hay,

managing director of Swank, saidthat Italian clothing took off inHong Kong only after Armanilaunched his ready-to-wearcollections in the early 1980s.

“It took some effort to educateand convince local people to wearItalian or European clothes.

“Once they started, they sawthey could really express theirown character,” he said.

FROM HAUTE COUTURE topret-a-porter, Hong Kongwill get a rare look at a half-

century of Italian fashion,including items that would bedifficult to see in Italy.

With exhibits valued at morethan $8 million, the 50 Years ofItalian Fashion exhibition beginstomorrow and continues till the15th at IFC Mall. On display willbe 74 dresses, menswear,accessories and original sketchesfrom 42 top Italian designers.

“These are some of the fashiondesigners who have created theconcept of Italian fashion,” saidCecilia Pavanello, generalmanager of the Italian Chamber ofCommerce, which is organisingthe show as part of a series ofcultural events. “It’s a rareopportunity to see these dresses.Even in Italy, you would see themonly on television.”

Exhibits range from an eveningdress by Emilio Schuberth, onceworn by actress Gina Lollobrigida,and a Brioni suit made for JohnWayne to the contemporarydesigns of Versace, a favouritebrand of singer and actressJennifer Lopez.

The iconic leather Guccihandbag with a bamboo handle –crafted by company founderGuccio Gucci in 1947 – will also beon display.

“These are exquisite creations,”said Alessia Tota, a curator for theexhibition. “We spent a lot of timelooking for garments made bythese kinds of designers.”

To complement the exhibition,the Italian Trade Commission willhold four spring and summerfashion shows, tomorrow and onSaturday, featuring Italian brandssold at the mall. Italian fashion isan easy sell in Hong Kong.

“The market is sophisticated,very mature,” said Bulgari HongKong managing director AngelinaBleach. “The population iscosmopolitan. It’s easy for high-end luxury businesses.”

A showcase for 50 years of fashion

A MONTH-LONG SERIES of events will belaunched tomorrow at IFC Mall to mark theNational Day of Italy. The events herald the Year ofItaly in China celebrations scheduled for next year.

Italy 2005: Quality and Lifestyle will showcasethe five pillars of Italian culture – art, film, fashion,design and music – until July 7.

“Italy is normally associated with food andfashion, but it is more than that. It is a very ancientculture,” said Fabio de Rosa, president of theItalian Chamber of Commerce, the eventorganiser.

Highlights include the exhibitions 50 Years ofItalian Fashion (June 3 to 15) and Italian Light(June 3 to 15), showcasing classic and modernlamp designs. Also on show are the works of high-profile artists Roberto Cipollone, known as Ciro(June 3 to 12), and Gianluca Miniaci (June 7 to 22).

Italian films will be screened from June 6 toJuly 7, while composer and pianist Giovanni Alleviwill make a rare appearance in a concert on June12. Four “I-Style” fashion shows will featureleading Italian brands.

For more information, visit www.icc.org.hk

LIFESTYLE BUILT AROUND ANCIENT LOVE OF THE FINE ARTS

S2 NATIONAL DAY OF ITALYT H U R S D A Y , J U N E 2 , 2 0 0 5 S O U T H C H I N A M O R N I N G P O S T

MERIDIONALE IMPIANTI,a dynamic privatelyowned Italiancompany, is expanding

one step at a time.Headquartered in Catania in

Italy, it has offices in Milan, Rome,France, Morocco, Singapore andthe United States.

Now it is investigatingopportunities to open offices andstart production in China,possibly in a joint venture with alocal company.

The 30-year-old company, withmore than 400 employeesworldwide, provides a broadrange of hi-tech products andservices for the microelectronics,pharmaceuticals and fibre opticsindustries.

Products include ultra high-purity systems for distribution andcontrol of gases, chemicals andwater, turnkey installations, cleanrooms with all auxiliary facilities,process tool hook-ups and pipingworks.

The company also offers value-added services such as totalfacility management andanalytical expertise.

Meridionale Impianti is alreadywell-known in the globalmarketplace, serving customerssuch as STMicroelectronics,Micron, Texas Instruments,Philips, MEMC, IRCI and Pirelli.

While Asia represents 20 percent of the Meridionale Impianti’sturnover, it predicts this willincrease by at least 50 per centannually for the next three years.

The company has an ambitiousthree-year plan for China: 2005will involve building contacts withagents, 2006 will see the openingof a manufacturing and servicecentre, and 2007 will bring analliance with local companies forproject execution where localmanpower is needed for systeminstallation.

“We have been so successful inother markets because of ouradded-value services,” said MarcoBorsari, corporate vice-presidentsales and marketing.

“China offers a huge number ofpotential customers as a result ofexpansion of internal marketdemand for hi-tech products. Wehope to find niches there, whereour added-value services,engineering capabilities andexperience in systems integrationcan attract customers.”

Company engineers an expansion With offices in Milan, Rome, France, Morocco, Singapore and the US, Meridionale Impianti plans to extend reach to China

Salvatore Raffa (middle), the president of privately owned Meridionale Impianti, with chief executive Pasquale Pistorio (left) and executive vice-president Laurent Bosson (right) of STMicroelectronics, a customer of the Italian hi-tech products and services company.

Reports by Pamela Sun, CarolineThomas and Angela Gaspar

FINAVAL’S FAR FLUNGoperations direct tankers,laden with crude oil and

chemicals, from one end of theworld to the other. The Italianshipping company runs a trulyglobal operation, co-ordinatinglogistics from offices located inRome and Monte Carlo, with anew hub planned soon in HongKong.

The company is among theleaders in the transport industryfor the clean and dirty cargomarkets. The roster of itscustomers includes most of themajor international names in theenergy and chemical industries,such as BP, Chevron, Texaco,Vitol, Odjfell, Valero, Shell andTotal. Finaval manages 24 vessels,20 of which it owns. The firmproduces worldwide turnover ofmore than ¤140 million ($1.37billion), generated by a headcountof 450 crew members and staff.

“In the field of logistics, it isimportant to work withspecialised organisations like ours,which really understand theproduct they are handling,” saidGiovanni Fagioli, president andchief executive of Finaval. Hiscompany’s mission is centred onthe delivery of efficiency andquality. At the same time, it neverloses sight of its commitment topolicies that promote health,safety and the protection of theenvironment.

The new Hong Kong office,which is scheduled to open thisyear, will help to strengthen andexpand the global network. HongKong has already been serving asa hub for Finaval’s Asianoperations. The companyfunctions with only 15 brokershere, whose role is to arrange forthe vessels to meet the needs ofmajor customers. “Our new officewill become the focal point for theentire interAsia market,” MrFagioli said.

Finaval has establishedrelationships with Sinochem andseveral private Chinese shipowners, whom it hopes to attractas customers once the new officeis open. Its executives travel on adaily basis between the ports ofShanghai, Singapore and HongKong, laying the groundwork for anew customer base.

“The Asian markets – bothChina and India – will ultimatelybe more important than anywhereelse in the rest of the world,” MrFagioli said.

Shippingcompanysets newcourse forHong Kong

FOR 10 YEARS, GeneralMotors has nominatedFiamm as its “supplier of

the year” for automotive horns.The family-owned Italiancompany is the world’s leadinghorn producer, and number threesupplier of standby batteries.

Over its 62-year history, Fiammhas diversified from electric trucksinto other automotive sectors,horns, antenna systems andstandby batteries for industrialapplications. Its industrialbatteries, representing onequarter of sales, provide

uninterrupted power supplies forthe telecom and computerindustries, emergency lighting,security, and power back-upsystems.

“We offer quality service, andreliable products with outstandingtechnology,” said Giulio Dolcetta,chairman of Fiamm. “Our maincustomers for horns are carmanufacturers. In starter batterieswe are stronger in thereplacement market.”

Fiamm has 14 plants located inEurope, the United States, Braziland the Far East, supplying

customers in more than 150countries. The company plans toexpand its sales andmanufacturing activities inSoutheast Asia to serve carmanufacturers establishingoperations in the Far East.

In 2004, Fiamm formed twojoint ventures in India for theproduction and sale of horns. Twomore are under way in China: onefor standby batteries and one forhorns. The aim is to develop salesin the Chinese and Far Easternmarkets and to establish a strongChinese manufacturing base from

which to supply customersworldwide.

The production facilities will belocated in the developing area ofWuhan, selected by thegovernment as a manufacturinghub for cars and automotivecomponents.

“In the past few years we haveseen great progress in China inresolving business and legaluncertainties,” Mr Dolcetta said.“We are confident this process willcontinue, increasing theattractiveness of the country fornew ventures and productionfacilities, and supporting theeconomic development of a veryimportant and promising market.”

Top car horn supplier switches focus to Southeast Asia

Giulio Dolcetta says production facilities will be located in Wuhan, China.

Fiamm already has two joint ventures under way in China

THE FIRST CHAPTER in thestory of the Zobele Groupbegan 85 years ago, with the

manufacture of fly paper in Italy.The family-owned firm thenmoved into new products, such asfloor wax, shoe polish and soap.The company is a global leader inelectrical air fresheners andinsecticides, including mosquitomats and coils.

As long ago as 1974, Zobeleturned its attention east, byimporting mosquito mats fromJapan. Twenty years later, thecompany decided to broaden itsnetwork of internationalproduction facilities to includeSpain, Mexico, India and Brazil.Eventually, it located its mostpromising new facility in the townof Xiangzi, in Guangdongprovince.

Zobele first opened a small-scale factory there in 2002, on anexperimental basis, employing 150people. The venture was sosuccessful that the companyexpanded to a larger 12,000-square-metre facility andwarehouse, plus offices and adormitory for 1,200 employees.

As a result, turnover has grownfrom under US$1 million to US$20million, with US$30 millionforecast for this year.

Having entered China ahead ofother Italian firms, Zobele stillsustains one of the largest Italianoperations in Guandong.

“We are a strategic partner formost of the multinationalcompanies,” said Enrico Zobele,chairman of Zobele Group. Tenper cent of local productionremains in China, and theremainder is exported worldwide,but the company plans to targetthe domestic Chinese marketsoon. “As our next step, we willcertainly start focusing on Chinesecustomers,” Mr Zobele said.

Chinese research anddevelopment facilities anduniversities also offer the

company a fertile opportunity forpartnerships.

Zobele’s emphasis oninnovation is rooted in itslongstanding and close co-operation with academic andtechnological centres, designersand key suppliers. The company isalready exploring new productconcepts in areas such aspharmaceuticals, pet care andpersonal care.

Although Zobele does not carryits own brand, it is well knownand respected for its innovation

and intellectual propertydevelopment. The firm has alsoestablished an efficient qualitysystem, and an integrated globalsupply chain, to reinforce itsmanufacturing capabilities.

Mr Zobele, who visits Chinaevery two months, believes themainland will become hiscompany’s key strategicmanufacturing location.

“I’m excited at how China isgrowing in every aspect,” he said.“You can feel the spirit and themovement there from day to day.”

Pioneer Zobele to focus onChinese domestic market

Enrico Zobele, Zobele Group chairman, is impressed by China’s growth.

Sponsored section in co-operation with Discovery Reports Ltd

NATIONAL DAY OF ITALY S3S O U T H C H I N A M O R N I N G P O S T T H U R S D A Y , J U N E 2 , 2 0 0 5

TEXTILE MANUFACTUREREurojersey believes the nextfew years will bring it

notable success in the Chineseclothing market. By increasingpromotion of its unique product,“Sensitive Fabrics”, the Milan-based company foresees strongsales growth out of its Shanghaiand Hong Kong offices.

Patented in 1989, SensitiveFabrics is a totally new type offabric created by an innovativemethod of combining Lycra andMeryl microfibre. This versatilematerial can be used in a widerange of garments includingswimwear, underwear,sportswear, outerwear andaccessories.

“What makes this product andthis company special is that thesame product can be used inmany different ways,” said AndreaCrespi, export manager ofEurojersey. “Usually you have twooptions: creating a technicallyadvanced fabric, or a fashionablefabric. The technically advancedfabric gives performance, butdoesn’t have a great appearance.The fashion fabric looks good andfeels soft, but isn’t technicallyinnovative. Sensitive is the firstproduct that combines thebenefits of both types of fabric.”

The company plans to grow itsbusiness in China by increasingrelationships with garment

manufacturers in Hong Kong andthe mainland. The combination ofItaly’s reputation in fashion andthe unique qualities of the fabricare a winning formula.

“People are starting toappreciate quality more, whichmeans there will surely be a placefor Eurojersey to develop in thismarket,” Mr Crespi said.

The company, founded in 1960,is a trusted leader in the worldknitting industry and is proud notjust of its unique product, but alsoof its Italian heritage: features thatmake it highly competitive.

Sensitive Fabrics are producedexclusively at Eurojersey’sheadquarters near Milan, the onlywarp-knit fabrics factory inEurope with a complete verticalproduction cycle to ensure totalquality.

“What Eurojersey has done,which other companies haven’t, issimple,” Mr Crespi said. “Here inItaly, we have invented aninternationally traded productthat has a patented technologyand name. Nobody in the globalknitting industry has ever traded abranded fabric or patented aproduct like this before.”

Sensitive brand meansexcellence “Made in Italy”, and itis communicated all over theworld through the hang tags thatact as a real certificate ofauthenticity.

Andrea Crespi says Sensitive Fabrics can be used in many different ways.

Innovative fabric puts material world in spin

THE FASHION DESIGNER MaxMara Group took a novelapproach when it decided to

use Snatt’s logistics services formanaging and transporting goodsto warehouses.

By becoming Snatt’s first largecustomer in 1984, Max Maracreated a trend for outsourcingthe warehousing and distributionof clothing apparel, shoes andaccessories.

Key accounts from topdesigners followed. Snatt Far Eastnow serves a who’s who of majorfashion houses, including Dolce &Gabbana, Calvin Klein, Fila,Valentino and Diesel, while Snattin Italy has key clients such asPolo Ralph Lauren, Tommy

Hilfiger and Chicco. The leadingItalian logistics firm handles morethan 50 million pieces per year,through its headquarters in ReggioEmilia and its offices in Bologna,Milan and Hong Kong.

The company started its HongKong hub in 1997, as a logisticsplatform for Asian productionusing Italian standards.

“In high fashion, you needknow-how and experience” saidGabriele Benfenati, chief executiveof Snatt Far East. “So we broughtour systems, technology andsoftware from Italy to Hong Kong,which has enabled us to attractbig names in the fashion andapparel business.”

Snatt’s automated and

integrated technology represents asubstantial investment inmachinery and labour.

The firm manages andtransports merchandise to andfrom Italy and abroad, door todoor.

In Asia, Snatt exports and, inparticular imports, goods fromChina, Indonesia and Vietnam.Retail goods are delivered daily toshops in Hong Kong, while inwholesale activity, the businesssupplies Asian manufacturers.

Snatt plans to branch outfurther in Asia by developinglogistics in Shanghai, followed byShenzhen and Guangzhou. A jointventure might provide one route.Another avenue would be a wholly

owned business, for which Snatthas applied for an operatinglicence.

The company hopes to open itsoffice this year on the mainland,where it will spend several yearssetting up a stable operation toserve several large accounts.

“We have something moresophisticated to offer than low-cost labour” said Ricardo Fuochi,chairman of Snatt Far East. “Assoon as labour costs in Chinaincrease, our technological systemwill become even moreinteresting.”

Making a fashion statement in Asia

Ricardo Fuochi, chairman, Snatt.

TURIN-BASED COMPANY, UtilIndustries, is gearing up totake advantage of the rapid

growth in China’s automotivesector. Manufacturing brakecomponents, it expects its recentlyacquired mainland plant to morethan double its production from15 million pieces by the end of thisyear to 40 million in 2010.

This ambitious expansionstrategy is based on the forecastincrease in car production inChina from two million in 2002 tonine million in 2008/2009.

“We want to follow the growthof the automotive industry inChina,” said Oscar Finessi, generalmanager of Util. Such growthpromises more jobs for Chineseemployees. With 150 peopleemployed at the new mainlandplant, Util plans to increase this to400 within the next five years.

Founded more than 40 yearsago, Util has maintained animpressive track record. Itsupplies more than 30 per cent ofthe world’s metallic brakecomponent market, making it theEuropean and American marketleader.

Besides its factories in Italy,Util has three in Canada and asales office in the United States.Overall, the company employs1,300 people.

The new mainland facilitybegins another chapter in the Utilsuccess story.

“We are going to Chinabecause it is a big new market thatis opening its doors,” Mr Finessisaid.

Initially, the mainlandproduction facility will serve the

domestic market andinternational companies in China.Util hopes to export from Chinathree years down the road.

“At the moment, we are goingto China because our customersasked us to go and help themproduce there,” Mr Finessi said.

“In a few years, we would liketo become one of the mostimportant companies in Chinaand the Far East. The opportunityis there to grow fast.”

Util also makes it clear that ithas a long-term commitment toChina. “A new production facilitylike ours means investing inknowledge, in technology, inpeople. We are not planning to gofor one year and then moveaway,” Mr Finessi said.

One of Util’s key strengths,along with the quality of itsproducts, is its excellentrelationship with its customers –something it plans to maintain inits mainland operations.

“We are the leading companybecause we are partners with ourcustomers. We want to reach thesame level of relationship with ourChinese customers.”

Geared up to double production

Chairman Franco De Gennaro

LIKE MANY INTERNATIONALcompanies, Italian civilengineering firm Torno is

looking at the mainland with keeninterest these days. But ratherthan trying to build a mainlandoperation, Torno is hoping toform joint ventures with Chinesefirms in Europe.

“More than us going to China, Ithink that the Chinese are ready tocome here,” said Massimo DalLago, executive vice-president atTorno. “And I’m very much opento the possibility of making jointventures with them, in Europeand in third countries.”

Torno is an internationalcompany with contracts spanningWestern and Eastern Europe,South America and Africa. It is nostranger to Asia, either. Theworld’s third-tallest dam was builtby Torno in Ertan, China, and thecompany has completed twoprojects in Taiwan.

What Torno is now looking forfrom the mainland is labour for itsItalian jobs. “At the moment,there is a boom in Italy and wedon’t have enough people,” Mr

Dal Lago said. “There is so muchto build after so many years of aflat market that we’re fighting toget labourers.”

Chinese materials andmachinery are also attractive toTorno. “We are alreadypurchasing equipment in China,”Mr Dal Lago said. “With elevatorsand escalators, we are seeing thatthe quality is increasing and theprice is very competitive.”

The company hopes to

establish a joint venture with amainland firm this year.

However, he feels it is too lateto establish an operation there.“I’d be very pleased to go now,but I haven’t found anything thatis economically reasonable tocompete with the Chineseconstruction companies.”

But Torno would jump at thechance to engage in concessioncontracts with the Chinesegovernment, in which it woulddesign, build, operate and financeprojects and recover its coststhrough user charges.

On its home turf, Torno has bigambitions, too. It hopes to growthrough mergers and acquisitionsto the point where it can competewith larger European companiesthat have a turnover of ¤5 billion($48.85 billion) a year or more.

“If instead of having ¤150million projects, you all of asudden have partners that willhelp you compete with projectsworth more than ¤1 billion. Themoment you’ve got two of thosejobs, your company is good,” hesaid.

Engineering partnerships abroad

Torno executive vice-president Massimo Dal Lago.


ALESSANDRIA-BASEDGuala Closures producesspecialised safetyclosures that prevent

tampering and adulteration forthe beverage and oil markets. The50-year-old Italian company istoday considered the benchmarkbrand in its industry worldwide.

All aspects of themanufacturing process arecompleted within the company’splants. Guala, which does notlicense or outsource, has evendeveloped its own assemblymachinery. The highly technicalnature of the multi-componentproducts, plus the company’smany patents, help preventcounterfeiting.

The company is determined toprotect its coveted reputation anddominant brand. “At packagingexhibitions you see a lot of smallcompanies with brochures saying‘Guala look-alike product’ or‘Original copy of Guala’,” saidMarco Giovannini, chairman andchief executive of Guala Closures.“Our best advertising comes fromour competitors.”

The company has alwaysconcentrated on the wine and

spirits industries, although itsproducts are also used by olive oil,vinegar and soy saucemanufacturers worldwide.

Twice the size of the closestcompetitor, it has 22 plants in 12countries on three continents.“We follow the market, whereverit is,” Mr Giovannini said. “Beingso global gives us the internationalnumber one position.”

Guala Closures entered themainland in 1992, where the safetyclosure industry did not exist.

“We created the Chinesemarket,” Mr Giovannini said.Currently, the company has oneplant in Waihu, north of Beijing.Every employee there is Chinese,except the general manager.

The company intends to focuson the mainland’s high-end spiritsand wine sectors. It is confidentabout the development of thealcohol industry there.

“Spirits consumption in Chinais already the second highest inthe world, and wine consumptionwill be the second highest in fiveyears’ time,” Mr Giovannini said.

“With the right partners, Chinacan potentially become a topquality producer.”

Guala Closures’ reputation onthe mainland is growing fastCompany will focus on premium spirits and wine sectors because consumption among world’s highest

Guala chairman and chief executive Marco Giovannini (left) and marketing director Paolo Ferrari see potential.


WHILE THE MAJORITY ofItalian investors aremostly interested in

opportunities on Chinese soil, I2 Capital and Natexis Cape arelooking for opportunities to boostthe international growth andambition of Chinese companies.

Their network, resources,management and three years ofexperience in supporting andmanaging foreign directinvestments in China are nowaccessible to Chinese enterpriseslooking to invest in Italiancompanies listed in I2 Capital’sinvestments portfolio.

I2 Capital and Natexis Cape aretwo innovative companies bornout of the marriage of leadingcommercial banks and successfulprivate equity firms.

Both have differentbackgrounds but share a common“hands on” approach to theirinvestments.

They provide not only capitalinjection but also involvement instrategic path planning andimplementation.

I2 Capital has a distinctiveexpertise in innovative finance byinvesting in alternative privateequity, in distressed non-goingconcern assets, and in its provenability in managing turnaroundsituations.

Natexis Cape is an emergingfirm investing in profitable smalland medium-sized enterprisescharacterised by an internationalgrowth strategy.

After the painful era of jointventures, European companiespursuing cost-cutting strategiesare now more focused onestablishing wholly owned foreignenterprises. Assets acquisitions isthe preferred method.

As an example, I2 Capital and

Natexis Cape are collaborating tohelp Idra Casting Machinesacquire a Chinese competitor.Idra Casting Machines is theworld leader in the production oflarge die-casting machines, withfacilities in Europe and the UnitedStates, and is fully controlled by I2 Capital.

The aim of the acquisition is tocreate the first global player in themarket in terms of worldwidepresence and product range.

I2 Capital also controls themajority stake of Deta, one of theEuropean leaders in the assemblyand distribution of office chairs,with revenues of more than ¤50million ($490.5 million).

Its clients are the largestexpanding resellers in westernEurope, such as cataloguists andlarge distribution chains. In thepast few years, Deta has beenincreasingly dealing with Chinesesuppliers to acquire qualitycomponents.

While I2 Capital and NatexisCape have been assisting Italiancompanies in the Chinese market,they are also equipped to assistChinese companies to enter theEuropean market.

I2 Capital and Natexis Cape

believe Chinese companies willincreasingly direct their effortstowards the acquisition ofEuropean targets in order to enternew markets.

They will do so by acquiringwell-established brands, know-how and strategically positionedproduction and/or logisticsfacilities.

Chinese companies willcontinue to diversify and enlargetheir customer base to fully exploittheir low-cost productioncapabilities.

Consequently, a businesscombination with non-Chinesecompetitors will be mainlydistribution network-driven.Western customers are brand-conscious and might be reluctantto accept items that are not wellbranded.

High-end market segmentswhich provide higher margins canbe entered only by means of well-established brands.

Acquisitions will also giveChinese companies instant accessto know-how, also by means ofnew patents and product andprocess innovation.

“We believe that some of ourindustrial subsidiaries would be ofgreat interest to Chinese investorsseeking to expand in Europe andItaly,” said Marcello Gallo,managing director of I2 Capital.

“We are carefully monitoringthe acquisitions done abroad byChinese corporations. Should thistrend be confirmed, I2 Capital willbe ready to act as co-investors ofChinese companies willing to takeon Italian targets,” Mr Gallo said.

“Right now, Italy is a veryinteresting country to growthrough acquisitions, consideringthe high number of companiesthere with very well-knownbrands, extended sales networksand excellent management,” headded.

Mr Gallo is currently travellingto China with Natexis Capechairman Simone Cimino, todiscuss ideas with majorcompanies and institutions.

Out to help China firmsconnect with EuropeTwo investors see a trend of mainland businesses making acquisitions overseas

Marcello Gallo, I2 Capital managing director, says his firm is ready to actas co-investors of Chinese companies with an eye on Italian targets.

LAST YEAR, ALGA suppliedalmost 80 per cent of thebridge bearings for a high-

speed rail construction in Taiwan.The project, a joint venture with aTaiwanese partner, was the largestof its kind in the world.

The three-generation familyconcern, started in 1942, producescomponents for construction andbridge bearings such as expansionjoints, antiseismic devices andpost-tensioning and stay cables.

While it is most active in Italy,more than 60 per cent of Alga’sturnover is in 40 countriesworldwide, including Portugal,Greece, Hong Kong and China.

“Our name, high quality andreliability set us apart from thecompetition,” said Alga presidentAgostino Marioni.

His company aims to providequality design and execution atvalue prices. It also takes pride inmeeting deadlines, which reducescosts for customers.

Dr Marioni, who is chairmanfor the European StandardCommission for StructuralBearings, persuaded theTaiwanese authorities to use state-of-the-art Europeanstandards for bearings.

Alga’s joint venture in themainland with the Fasten Group,a Chinese steel strandsmanufacturer, producesanchorages for post tensioning.

The company was establishedto bring together Europeanstandards with skilled Chineseworkers, modern machinery andquality control.

Dr Marioni travels to Chinaregularly to build relationshipswith partners and customers,construction planners andcontractors.

One important contact inWuhan, the Fourth Survey andDesign Institute of China Railway,which oversees the design ofmajor high-speed rails, intends toestablish a permanentrelationship with Alga.

Alga sees China and Taiwan askey locations, and intendseventually to penetrate up to 30per cent of the Chinese market.

“We need to produce in Chinain order to buy at a lower cost forour European market,” DrMarioni said. “One day, ourChinese company may evenexceed our operations in Italy.”

Agostino Marioni travels to the mainland regularly to build relationships with partners and customers.

Alga builds bridges with ventures inGreater China


FREIGHT FORWARDINGcompany Alisped is wellknown and well regarded in

the fashion industry for its focuson customised service.

The company offers air, shipand truck deliveries of rawmaterials and finished products inthe import and export fields. Italso provides customs clearance,door-to-door delivery, andwarehousing and packing servicesfor its clients, many of whomcome from the fabrics and textilesindustries.

It is the emphasis on service,however, which makes thecompany stand out.

“Our goal is not just to attractbusiness and customers withcheap rates. We really try topersonalise our services to giveour customers the very best,” saidmanaging director Luca Lunghi.

“Many large companies in oursector close at 5pm. Alisped is a

24-hour service. Most giants cannotcompete with us.”

Founded in Prato in 1968, Alispedhas offices all over Europe, the UnitedStates and Southeast Asia. There arebranches in Hong Kong, Taipei,Shanghai, Qingdao, Guangzhou and

Shenzhen. The company enteredthe Asian market 10 years agothrough a joint-venturepartnership with Chinese-ownedCohesion, which has branchesacross the mainland.

Alisped plans to open othermainland branches through thesame joint venture and intends tostart operating in Malaysia.

“We view Asia as a goodopportunity,” Mr Lunghi said.

The company is optimisticabout its growth potential inChina. In particular, the rate ofimport of raw materials from themainland to Europe is increasing.The country is also becoming animportant market for finishedgoods.

“China is changing so fast. Verysoon stores there will start to buyfinished products. I would say inthe next five years China willbecome our most importantmarket,” Mr Lunghi said.

Freight forwarder deliverson commitment to service

Luca Lunghi: sees China expansion

NATIONAL DAY OF ITALY S5T H U R S D A Y , J U N E 2 , 2 0 0 5

FREIGHT-FORWARDINGcompany Bossi & CTransiti prides itself on itslong history of success,

both in Italy and in China.Founded in 1925 by GiovanniBossi and his brother-in-lawRenzo Batistelli, it is today 100 percent owned by the Batistellifamily.

Mr Batistelli’s descendants runoperations for transport by sea,land and air from the company’sheadquarters in the northernItalian port city of Genoa. Thefreight-forwarding firm transportsa huge variety of goods –including plastic toys, fabrics,food products and chemicals.

The exclusive agents organisethe shipments across fivecontinents, connecting betweenmajor offices in northern Italy,Britain, Hong Kong and Shanghai.

The agents can arrange door-to-door shipments to any locationvia the global network. Bossi offersa complete logistical-forwardingcycle, from production andstorage, to inspections andsupervision of goods.

With an 80-year history in Italyand a decade of experience in theChinese market, Bossi has becomea familiar industry name.

“The main shipping lines andother forwarding companies knowus well,” said Lorenzo Batistelli,managing director of Bossi.

The company also enjoys anexcellent reputation for its fullrange of capabilities. Servicesinclude full container loads andless container cargo, which meanssmall units are packed together ina single container.

Bossi began operating in Chinain 1993, sending shipments to themainland from Italy. Thecompany immediately sawmassive potential in the Chinesemarket.

“From the beginning, wefocused on the development of

Chinese traffic, especially thewest-bound traffic from Chinawhich was increasing at thattime,” Mr Batistelli said.

Today, 90 per cent of Bossi’sChinese operations involveimports from China to Italy, withexports from Italy to Chinamaking up the remaining 10 percent.

Four years after starting workon the mainland, Bossi opened anoperational office in Hong Kong toprovide better service to its Italiancustomers, including findingspace on cargo ships in the eastand negotiating rates from themainland to Italy.

Building on its Hong Kongaccomplishments, Bossiestablished a Shanghai office in2002 in a joint-venturepartnership with the company’s

Chinese agent, Shanghai YZ. Thatpartnership has proved hugelysuccessful.

“We still co-operate veryclosely with our partner,” MrBatistelli said. Major ports inChina are investing substantialamounts of money in shipping,especially in the large containervessels which are Bossi’s mainbusiness.

Shanghai’s port, for example,plans to have 52 new berths forships by 2007. So having an officein China improves Bossi’sperformance in terms of services.

“The operations in China were

very difficult until we set up ourjoint-venture office,” Mr Batistellisaid.

Today, Bossi has two full-timeemployees with Shanghai YZ whowork on the Italian company’sbusiness in China. Having thispresence has made working onthe mainland much morestraightforward.

Although it is still challenging,the process is becoming easier,and the company is nowconsidering handling operationsalone in a couple of years.

Next year, Bossi expects it willget the opportunity to make a 100per cent direct overseasinvestment in China. Companyofficials said it hoped, at thatpoint, to acquire full control of theShanghai office. Bossi also plansto open up more mainland officesin the next two to three years.

Meanwhile, the company alsointends to develop its operationsin Italy to assist with the Chineseexpansion. Most of Bossi’sChinese customers require notonly the shipment of theircontainers to Italian ports, butalso storage services in Italy anddistribution of the goods toconsumers all over Europe.

As the storage aspect hasbecome increasingly important,the company has invested moneynot just in distribution logisticsthroughout Italy, but also in a9,000 square metre warehouse inthe northern Italian town of Biella.

Bossi also plans, in the nexttwo years, to open a new 20,000square metre warehouse closer toGenoa that will be dedicated todistribution.

For Bossi, the expansionstrategy is aimed at providingcustomers worldwide with whatthey need in terms of efficiency,reliability and flexibility.

“Our main focus is to give thebest possible service available,”Mr Batistelli said.

Feeding Europe’sgrowing hungerfor Chinese goods An 80-year-old family shipping firm hopes to build on itsChina business by expanding operations in the country

“Our main focus is togive the bestpossible serviceavailable”

Lorenzo Batistelli,Managing director Bossi & C Transiti

WHEN IT COMES tomarkets, Rottapharm isan old Asia hand. The

Italian pharmaceutical companystarted operations in Taiwan 31years ago. It has been in HongKong for more than two decades,and on the mainland for eightyears. Now Rottapharm hopes toexpand its mainland presence.

The drug it sells there, Viatril, isa leading compound forosteoarthritis, targetingdegeneration of cartilage. Withworldwide sales of about US$350million, Rottapharm’s goal is toget three new products into themainland market within the nexttwo to three years. To reach that

goal, it is planning to start localclinical trials.

“We are speaking to a verysophisticated audience ofdoctors,” said Luca Rovati,Rottapharm’s managing director.“In order to prepare to talk tothem, we need to conduct localscientific activities and trials.Otherwise, we will never beaccepted by the local doctors.”

In the longer term, Rottapharmis considering manufacturing onthe mainland. “We are waiting toreach critical mass with adequatequantities of sales,” said ProfessorLuigi Rovati, founder andpresident of Rottapharm.

In its more than 40 years of

existence, the company hasalways emphasised research anddevelopment of original drugs. Ithas nearly 700 patents around theworld on new molecules – morethan any other Italian company.

Rottapharm’s mainlandcompetition includes the majorinternational drug makers, as wellas traditional Chinese medicine.However, the company said themakeup of Viatril and the otherdrugs have an all-natural appeal.

“It is derived from crab shells,not chemicals,” Luca Rovati said.“And the other three products thatwe are going to put on the marketalso have a very strong naturalconnotation.”

Rottapharm’s Luca Rovati (left) and Professor Luigi Rovati are also considering manufacturing on the mainland.

Drug maker set to beginmainland clinical trials



WHEN DESIGNER LABELmanufacturers needtrimmings, they go to

Fiocchi, the world-renownedItalian producer of metalfastenings for clothing.

Fiocchi has been part of theGerman-based Prym FashionGroup since 1992. Prym Fashion isa world leader in fastening systemswith facilities worldwide andsubsidiaries in the apparelindustry’s most significantmarkets.

A pillar of Fiocchi’s success isits typically Italian style, as well asits flexibility and creativity.

To attract and serve customersin China with its wide range ofproducts, Prym Fashion AsiaPacific was established in HongKong in 1996. Ningbo Prym, afactory in the mainland, wasopened in 1998.

“Through Prym Fashion AsiaPacific, we compete with localcompanies in the top segment ofthe market that requires addedvalue, harmonised quality, andreliability from the trims,” saidMarzio Maccacaro, vice-presidentsales and marketing. “NingboPrym produces mainstreamproducts for the local market.”

Despite the highly competitivenature of the fashion businesswith radical and frequent changes,Fiocchi has managed to remainsuccessful. The company’sstrength lies in its flexibility,understanding of customer needs

and technological expertise. Mr Maccacaro said: “It’s tough

for metal button manufacturers infashion, because they have to takethe designs created by stylists andtransform them into a feasibletechnological product. A goodrelationship with the customerand the market is another pillar.”

Prym Fashion Group considersthe mainland a key market and isconsidering expanding there.

“Probably in the future we shallmake investments to strengthenour production and transfer ourknow-how,” Mr Maccacaro said.“To grow locally you have to bewell organised and you have tohave the tools to give you a leadingedge over local competitors.

“China is a huge market withmany opportunities for majormanufacturers around the worldwho can, in return, contributetheir know-how and experience.”

Fiocchi grows as itfastens on to theChinese market

Marzio Maccacaro of Fiocchi.


THERE ARE a huge variety ofinvisible chemicals ineverything that we touch,

eat, drink, wear and drive eachday. And Lamberti Group’sspeciality chemical products areused in almost all of them, fromshampoo, toothpaste andnewspapers, to the cloth andleather materials used to makesuits, shoes and bags.

Lamberti has been producingspeciality chemicals for almost 100years for the textile, leather, paper,ceramics, coatings, construction,building materials, oil drilling,personal care and food industries.

Building on entrepreneurshipand an Italian tradition ofinnovation and research anddevelopment, the firm is extendingits presence in foreign markets. Itsinternational operations represent70 per cent of turnover. Lamberti’saffiliates are active globally inEurope, North and South America,South Africa and Asia.

Lamberti began exporting toChina in the 1970s, established itsregional head office in Hong Kong13 years ago, and now employs 120people in Southeast Asia.

It has branches in Shanghaiand Beijing, a joint venturemanufacturing facility in Wuxi inJiangsu province, a commercial/technical office in South Korea,and a manufacturing plant inIndonesia.

In China, Lamberti is bestknown for its leather specialities

and textile printing and spinningproducts in the Guandong andShanghai regions.

“We have decided to investeven more substantially in China,”said Roberto Porro, LambertiGroup general manager.

“The Chinese and SoutheastAsian markets nowadays require amuch stronger and localoperation.”

Specialisation has sustained thecompany’s competitive edge.Lamberti can tailor products tospecific customer needs. At thesame time, it is committed toprotecting the environment, thesafety of the workplace and thecommunity.

“China is the largest potentialgrowth area for us in the world,”Mr Porro said. “We understandcustomers’ requirements, and canadapt Italian technology for highquality products in a virtuouscycle.”

Firm’s chemistry attractsbusinesses across Asia

Roberto Porro

THE HISTORY OF trade linksbetween Italy and China islong and distinguished,and includes tales of sea-

faring explorers, such as MarcoPolo in the 13th century. Suchadventurers ensured the twocountries, although thousands ofmiles apart, maintained close tiesover the centuries. Italianshipping company Lloyd Triestinocontinues this tradition.

The company began life asLloyd Austriaco. Founded inTrieste in 1833 by the Austriangovernment, it was used for manyyears by the Austro-HungarianEmpire as a political tool. In 1919,control passed from Austria toItaly, and the name was changedto Lloyd Triestino.

Starting as an insurance firm,the company providedinformation to merchants,insurance brokers and shipperson markets and maritime trade inEurope and Asia. It becameinvolved in the shipping industryin 1836, making it one of theoldest sea trade lines in the world.The company initially focused ongoods shipping, and addedpassenger services in the early20th century.

In the mid-19th century,Europe was looking eastwards fortrade opportunities. LloydTriestino played a significant rolein establishing a route from theMediterranean to the East. In1869, the company’s ships wereamong the first to cross the SuezCanal, a watershed event thatopened up trade to the Asianmarkets.

“Since its originalincorporation, it was clear that theline would represent an importantlink with the Far East,” said LloydTriestino chairman Pier LuigiManeschi. “The company was apioneer in the shipping routebetween Europe and Africa andAustralia,”

Although Lloyd Triestino had anetwork of links to marketsworldwide, it was not alwayssmooth-sailing. The second worldwar damaged the company tosuch an extent that the fleet wasreduced from 75 ships to just five.Later, the growing popularity ofairlines in the 1970s resulted in asevere decline in the use ofpassenger ships.

Lloyd Triestino overcame thesechallenges by building up itscontainer shipping business right

through the 20th century. In 1998,the company was privatised bythe Italian government, and someprivate partners – includingmultinational Taiwanesecompany Evergreen – werebrought on board to bolsterfinances.

Today, the firm offers 24services, operated directly or inpartnership with othercompanies. In the six years sinceprivatisation, the number ofservices offered has tripled,enabling the organisation to covernew routes and world markets.

Lloyd Triestino’s partnershipwith carefully chosen companieshas expanded its range of servicesand its flexibility. Joining forcesalso stimulates creative ideas andsolutions. Meanwhile, the numberof vessels run by the fleet hasgrown threefold, and more shipsand marine terminals areexpected.

“People do not alwaysappreciate the challenges andcomplexity of operating ashipping line,” Mr Maneschi said.“We want our customers to let ushelp them.”

His company is committed to avision of constant improvement in

logistics quality, services andtechnology.

During all these times ofchange, one relationship hasremained constant. LloydTriestino has always operated inChina, and today has offices andagents throughout the mainland.

The firm inaugurated its firstroute to Hong Kong and Shanghaiin 1881, and opened its first officein Shanghai in 1908.

“Since before 1900, LloydTriestino ships have beenconnecting Europe and Chinawith direct, weekly services,” MrManeschi said. “Today Shanghai,Ningbo, Yantian, Xiamen andQingdao still represent ourtraditional Chinese ports.”

In 1972, the firm incorporated anew company, LT Pacific, whichhas offices in the main ports ofsouth China. The company’s longhistory in China has earned it ahigh level of recognition.

“We are very well known inChina, because we were presentthere when many other linesdidn’t even exist.”

Another advantage is thecompany’s strategy of extensiveinvestment in the country.

“China needs investment in

terms of ports, intermodal andsales offices.

“You cannot simply establish arepresentative office and expect tobe successful,” he said.

Lloyd Triestino is enthusiasticabout sustaining its level ofinvestment.

“China represents a substantialportion of our capacity, which iswhy we are determined to buildour presence there,” Mr Maneschisaid.

“We make every effort to followand, whenever possible, anticipatethe Chinese market’s expansion.

“We are responsive to marketdemands, while we cater to themany opportunities for trafficgrowth.”

Lloyd Triestino plans to openmore branch offices in thecountry, and is negotiatingterminals in Ningbo andShanghai.

“Forwards” is the LloydTriestino motto – the same mottoused when the firm was foundedmore than 150 years ago.

With a century of investmentin China already behind it, LloydTriestino is looking ahead to afuture of further success in China– and around the world.

Historical links are helping to boost trade Lloyd Triestino has been sailing to China with a rich cargo of business for more than a century and is keeping up with changing market demand

Chairman Pier Luigi Maneschi says Lloyd Triestino’s motto is forwards.