Azimut closes facility, returns production from Turkey

Azimut Logo 3D jpgAzimut Benetti has announced that it is to close its Italian production facility in Gropparello in the Piancenza province, and that it will be returning production of its three entry level yachts – Azimut 40, 
Azimut 40S, and Magellano 43 – sold under the Azimut Yachts trademark, currently made in Turkey, to Italy. Azimut claims the move is to increase efficiencies within the group and to “defend the identity of yachts ‘Made in Italy’”. In a statement the boatbuilder, claiming the organisational changes are “reinforcing the Group’s roots in the land where its product is conceived, designed and built”, expresses particular concern over the defection of Italian business and know-how to the Far East: “At a time when Italian companies are oriented towards delocalisation in order to stay competitive; when a lot of businesspeople are giving in and selling up to foreign investors; when the Chinese are buying Italian trademarks to add a touch of class to articles made in China – the Azimut|Benetti Group has decided to concentrate its production in Italy.”

The closure of the Gropparello facility will impact approximately 180 people, marketing director Francesco Ansalone told IBI. “We want to strengthen our presence in Italy,” added Paolo Casani, managing director of Azimut Yachts and Atlantis, “because we’re convinced that this is the path to success, but at the same time we need to choose the most efficient locations for production. Our industrial policy will demonstrate that the Italian yachting industry can be an unrivalled world leader again. But all stakeholders must accept their share of the responsibility. We have begun the process and we are confident that everyone will make a responsible contribution, including the trade unions, to complete the change as quickly as possible. We’re also sure that the highly qualified facilities and skilled workers present in many parts of the country will be of use in setting up our new productive structure for yachts from 30ft to 80ft-90ft with maximum efficiency. This is the logic behind the closure of the facility in Gropparello, which can no longer maintain sufficient competitiveness on the world market, and the due diligence investigations we are conducting in all our productive facilities. The Atlantis brand is a priority for investment and plays a key role in the Azimut|Benetti Group’s overall strategy.”

When asked by IBI what impact the ‘Made in Italy’ strategy might have on Azimut’s joint venture in Brazil, Ansalone confirmed that its Brazilian facility would be its only factory outside of Italy and that Brazilian production was necessary given the high rate of import taxes that almost double the price of a boat to the end user. “Boats produced in Brazil are for the local market only,” he added, saying that key management roles (including CEO), at Azimut do Brasil were occupied by Italians and that a number of components used in construction were shipped in from Italy, maintaining the ‘Made in Italy’ integrity of the end product.

The Group’s Chairman Paolo Vitelli said of the changes: “The yacht is an object of desire, a dream, a myth, and we want to sell this dream, this myth, made in Italy; but to do this, we must make our factories competitive and efficient to counteract the growth of production in emerging nations. The Germans have managed to do this in the automotive sector. We’re even better at it than they are, and we can do it too, if we want to. In order to implement this project going against the flow, our workers must capitalise on their pride, team spirit and sense of responsibility. To achieve our goal and increase productivity we need to reduce our structural costs, shorten the chain of command and, in the short term, eliminate a few positions which, however valid, are redundant in our organisation.”

Source: IBI Plus