Joint progress in paper processing

Specialization is the keyword for industria cartaria Pieretti, the company founded by the present Managing Director’s grandfather in 1924. “Of course the methods of paper and core board production were very rudimentary then,” says Tiziano Pieretti. “In the meantime, we have invested a lot in modern machinery in response to the needs of the market. Tissue cores have become the mainstay of our business – and are still at a volume of 110,000 t per year, compared to our total production volume of 150,000 t.”

Grey board is the material of choice for Cartiera dell’Adda, the company that took over 80% of icP’s shares in July 2018. “We used to be competitors in certain areas, now Mr. Pieretti is a shareholder and we have formed a group,” explains Giuseppe Cima, Managing Director. “With an annual output of 300,000 t of core and grey boards we rank among the market leaders in Europe, and our group benefits from mutual strengths and capabilities.”

Distribution and administration have been coordinated already, yet it takes longer to exchange and adapt technologies in order to make full use of both companies’ knowledge and experience. “In addition to mother rolls core board production, as we are specialized in cutting, we can provide reels in small sizes as required by our clients in the tissue field. We supply core board reels from 65mm width as a service to our clients in the tissue industry” points out Mr. Pieretti.

For Cartiera dell’Adda, the focus is on the use of recycled paper. “As the market is calling for sustainable products,” says Mr. Cima. “We succeeded in developing a unique, patented technology for the recycling of paper and production of grey board back in 2009. Our machines are purpose-built, as we are operating in a market niche.”

While industria cartaria Pieretti owns an area of 100,000 m² including 50,000 m² covered space, Cartiera dell’Adda contributes 50,000 m², 22,000 m² of which are covered. “industria cartaria Pieretti operates two major plants, we have one,” adds Mr. Cima. “The systems are quite complementary, and we have already begun to adapt and modify the conventional machines in Marlia Capannori. Thanks to the merger, we are also able to invest considerably in staff education and training. Our R&D department is well positioned with five technicians and engineers who are qualified in paper processing. All in all, we are able to supply high quality core and grey board at a competitive price.”

The merger between two traditional family enterprises is unique in the Italian paper industry, and so is the outcome. industria cartaria Pieretti and Cartiera dell’Adda have been able to optimize the quality of products both where the materials and their mechanical features are concerned.

“We mainly produce core board for industrial cores,” explains the Managing Director of Cartiera dell’Adda. “Grey board for boxes and the production of corrugated core board is another market niche we serve. At a market share of 50%, both our companies have seen the need for export at an early stage.” Indeed, more than half of the core board produced at Marlia Capannori is sold abroad, especially in Europe, the Middle East, South America and the USA, where it is supported by three local bases. Cartiera dell’Adda exports an almost equal share of its products, focusing on Europe, North Africa and the Middle East.

Less than two years since the merger, the joint enterprises are well established in the national and international business with a total of 250 employees and annual revenues around 110 million EUR. They offer products that will always be needed – at a quality that is appreciated by a growing number of customers. Mr. Pieretti feels that industria cartaria Pieretti and Cartiera dell’Adda owe this development to intensified marketing activities: “We have always attended fairs and events to look for new customers and represent the companies’ activities. Since the merger we have been cooperating with an external agency to coordinate the group’s market presence, also in the social media, and find a new group name. We are working on digitalization and technical information. We want to communicate what we are doing so that our clients are able to identify our products as quality products, also under the aspect of sustainability. We also sponsor cultural and sports events, as we feel connected to the region and like to support young people.”

Both Mr. Pieretti and Mr. Cima have virtually been born into the paper industry, and both Managing Directors are driven by the passion to make the newly formed group grow and succeed. “The merger has united two poles of excellence in the Italian market,” says Mr. Pieretti, and Mr. Cima confirms this claim to excellence: “We have joined the best of everything. As the group continues to develop and grow, we aspire to excellence in every field, including technology, staff training, finance, distribution, marketing and support.”

Since growth is on the agenda, the company management is open to all possibilities and will also consider further strategic acquisitions. “The key to success, however, is to be very reactive,” says Mr. Cima. “The market is developing, especially in the packaging sector, and we need to respond to new opportunities as they arise.”

So, in spite of the size the group has reached, its response will remain fast and flexible. “We appreciate the fact that industria cartaria Pieretti and Cartiera dell’Adda will keep their names within the group, as they are both family businesses with an old tradition and worldwide renown,” concludes the Managing Director. “The group itself will be part of a holding whose name represents its identity.”