After a successful year and a series of acquisitions, the Fedrigoni Group, which counts almost 5,000 employees in 28 countries, achieved sales of EUR 2.3 billion in 2022, divided between two major activities, EUR 1.3 billion for the Labels division, and EUR 1 billion for Speciality Papers. To optimize its growth, the Speciality Papers division is now being reorganized on the global level into four business units.
Luxury Ecosystem covers speciality papers for the luxury industry designed for packaging and communication. The Paris-based management works with dedicated teams in the various international offices.
“Luxury goods customers need to work with a global organization capable of carrying out a project on different continents. With 12 paper machines worldwide, we also have the agility and flexibility that these customers expect, even for small production runs”, says Ilan Schinazi, the Sales Director of Fedrigoni Papers.
The Luxury business unit already accounts for 35% to 40% of the Group’s sales, with established partnerships with leading luxury groups. However, they aim to reach 60% within the next three years, in particular by expanding into the North American and Asian markets.
The Creative Communication business unit is dedicated to creative papers for the publishing and creative communication industries. Fedrigoni is one of the world leaders in this market, which represents almost 40% of its sales.
Technical Solutions includes highly specialized products, from RFID to smart papers, and from speciality papers designed to replace plastic in many applications to playing and trading cards. The group is currently developing the market for hotel room key cards and gift cards.
Art and Drawing represents the wide range of drawing papers produced by the historic Fabriano factory based in southern Italy.
In addition, Fedrigoni has just completed three new acquisitions aimed at consolidating its geographical presence, technological development, and CSR approach based on the “plastic to paper” strategy.
Having already purchased the Guarro Casas Arjowiggins plant in Spain in 2022, in late 2023, the Group integrated the Arjowiggins plant in China, which is specialized in tracing paper and produces 7,000 tonnes per year.
“The logic behind this acquisition is both geographical and CSR-based. We believe that transparent tracing paper can replace plastic in a number of applications”, explains Ilan Schinazi.
The second acquisition is SharpEnd, a UK-based agency specializing in the RFID technology. This move follows the acquisition of Tageos France, an expert in connected solutions, in 2022, and of its R&D centre, reinforcing the Group’s commitment to smart label and paper solutions.
“We are confirming our interest in this technology with an agency that can help us bring the RFID experience to life for consumers”, notes the director.
Finally, Fedrigoni confirmed it acquired 100% of Italian company Eclose, a manufacturer of cellulose-based pulp wedges and packaging – a market with strong potential. The company already works with some fifteen luxury brands.
The Group confirmed it signed an agreement with a player from Brazil, the country being the world’s leading producer of short-fibre paper pulp.
“This supplier is extremely committed to CSR. They work on preserved forests in the south of the country and boast a productivity of eucalyptus reforestation cycles that is twice that of Nordic countries”, explains the director.
After a “euphoric” year 2022, according to him, the 2023 result that will be presented in April looks set to be at least equivalent in terms of volume.
“We have also achieved a strong start to 2024. We will have to wait and see for the rest of the year, depending on the geopolitical context, but what is for sure is that there is a huge demand in the luxury sector for value-added speciality papers”, concludes Ilan Schinazi.
With its new organization, its four production sites in Italy, France, Spain, and China, and the inauguration of its innovation centre in Verona dedicated to high-end papers, Fedrigoni intends to meet this demand in every respect.