Transparent success Sangalli Group

TRANSPARENT SUCCESS

Italian market leader in glass production Sangalli Group has announced a strategic transaction with the Glasswall Group to expand its international presence. Daniele Garavaglia talks to CEO Franscesco Sangalli to find out more.

The family-run Sangalli Group is a leading manufacturer of glass products, with four facilities based in both northern and southern Italy. A recent agreement signed between Sangalli and leading glass company Glasswall is designed to support the revitalisation of an important historical sector: the Italian architectural glass industry.

Under the terms of the agreement, Glasswall has become a 50 per cent shareholder of the Sangalli Group, securing equity investments into the company and ongoing financial support. The two parties will combine their resources to strengthen the financial position of the Sangalli Group, expand its presence in the European market and invest in the development of value-added products in areas such as acoustic control, thermal insulation, safety, solar control and design.

Concrete basis for future growth

CEO Mr Francesco Sangalli commented: “Over the past decade, Sangalli Group has been building up production capacity

alongside our market share. This partnership with the Glasswall Group strengthens and consolidates our current financial and operational position and creates a solid basis for future growth.”

It is the company’s intention to use the proceeds from the transaction over the next two years to complete a comprehensive financial and business restructuring in order to withstand any potential market downturns in the medium term. Besides providing financial support, the Glasswall Group is also bringing its expertise in the marketing and distribution of glass products which will enable the Sangalli Group to both increase its domestic market share and expand its presence in neighbouring markets.

In the longer term, the primary goal of the partnership is to focus on the development and implementation of advanced technologies in glass coating and processing. Using their joint experience, the companies are now taking the first steps towards achieving this. Long-term market leaders

History of Sangalli Group’s expertise in glass trading dates back to 1896. In the 1950s, Mr Giorgio Sangalli led the upstream integration of the group into glass processing by setting up an insulated glass unit, tempering and lamination facilities in Susegana, Vittorio Veneto, Modena, Perugia and San Vito al Tagliamento. Over the past decade, the group has moved into the area of float glass production and consolidated its position as the second largest independent float glass producer in Europe. In 2002, the group opened its first float glass line in Manfredonia and in 2011 it doubled its production capacity by launching a highly automated float glass line in Porto Nogaro. Continuous investment into R&D has also enabled the group to achieve a leading position in satinated and laminated products, as well as various environmental awards with total investments exceeding €270 million.

In 2012, the Sangalli Group produced over 300,000 tons of float glass, giving it a 35 per

cent share of the domestic market. That year, its revenue amounted to over €100 million and it employed over 370 people in Italy.

The Glasswall Group, meanwhile, consists of several leading businesses in float glass production, processing and logistics in Russia and the CIS. The group was founded in the early 1990s by Mr Dmitry Sulin as a glass processing business (STiS) and, within a decade, it had grown into the largest glass processor in Europe. The company currently operates 35 processing and two tempering lines, processes over 120,000 tonnes of glass and employs over 1600 people. The combined revenues of all its businesses total some €300 million.

Strategic restructuring

The alliance with Glasswall has allowed Sangalli to redefine its strategy in the Italian market. “With regard to the continued challenging conditions within the Italian architectural and building sector, Sangalli Group is taking action to reduce its production capacity and output to match the requirements of our customers,” Mr Sangalli explains.

“Our Manfredonia furnace, for example, is approaching the end of its working life and will be cooled down in December 2014. Following this, we are planning an extended cold repair. We will ensure the continuity of supply from the Porto Nogaro site and maintain the group’s position in our core markets.”

Energy efficiency and glass engineering

In addition to reorganising its operational structure in Italy, the Sangalli Grup has just announced the beginning of production and commercialisation of the Climax T, the new temperable Low-E magnetronic glass and the latest addition to the company’s well-known Climax range. Available in thicknesses from 3-12mm, the Climax T is particularly suited for those specific project applications in which the need for thermal glass is combined with the need for tempered glass to ensure safety.

Both standard Climax and Climax T products can be used in the same application without any difference in colour.

Mr Sangalli concludes: “We are very focused on energy efficiency and glass engineering – cooperating, for example, on the latest generation of energy-saving glass – because these are two key global drivers of innovation.” n