A strategy for sustainable growth Sofidel Group

Italy’s Sofidel Group is leading the world in integrating sustainability into every aspect of its business.

A STRATEGY FOR SUSTAINABLE GROWTH

In October 2020, the Sofidel Group announced that it was enhancing its commitment to more sustainable packaging with the introduction of its Regina Cartacamomilla toilet paper brand in new packaging in kraft paper. The new packaging is manufactured with a bio-based material, and therefore renewable and easily recyclable, and replaces the standard polyethylene film.

The operation, which started in Italy back in September, will be completed by the end of the year and is part of Sofidel’s broader sustainable development strategy.

At the same time, the Regina Kamillenpapier toilet paper in Germany, and the Regina Rumiankowy toilet paper, in Poland, hit supermarket shelves in a new version featuring kraft paper packs, alongside the polyethylene packs already marketed. In Spain too, the new Regina Camomila toilet paper with kraft paper packs has been recently presented to retailers.

The Sofidel Group has set itself the goal of achieving a 50% reduction in the use of conventional plastic in its production by 2030 (compared to 2013), which is equivalent to the elimination of over 11,000 tonnes of plastic released onto the market every year from 2030 onwards.

This goal is pursued through a general reduction in the thickness of the plastic film used in the production process (launched some years ago), the introduction of new kraft paper packaging, which is already present or due to arrive on European distribution shelves, and the progressive use, on some markets, of recycled plastics or bioplastics.

A worldwide enterprise

Sofidel founded in 1966, is today one of the largest producers of paper for hygienic and domestic uses (tissue) in the world. It produces and markets toilet paper, kitchen towels, napkins, handkerchiefs and tissues. The company is owned by the Stefani and Lazzareschi families.

From its headquarters in Porcari, Sofidel coordinates the work of 17 companies throughout Europe and the United States. In total it has more than 6,000 employees and a current production capacity of 1.3 million tonnes. The group achieved net sales of €1.9 billion in 2019, up from €1.7 billion in 2018. Its best-known brand, available in several countries, is Regina. Regina brand toilet paper, kitchen towels, napkins, handkerchiefs and tissues are familiar all over Europe.

The Sofidel Group’s business model sees sustainability and innovation as an essential combination that creates value for the company and all its stakeholders and allows new opportunities to be seized.

Sofidel’s goal is to incorporate sustainability in every aspect of its business, in order to continually find new solutions to reduce its environmental impact, satisfy customer and local community needs and improve relations with employees and suppliers, putting people’s safety and well-being first. To this end, a three-year sustainability plan has been drawn up, which all department heads are asked to implement with precise objectives. The sustainability plan is monitored and updated every year and validated by Sofidel’s CEO.

New US plant

Also this October, Sofidel announced that its new US plant in Inola, Oklahoma, was now fully operational. The Inola production site is the second built from scratch (i.e. on a greenfield site)

by Sofidel in the United States, after its plant in Circleville, Ohio, opened in 2018. The Inola plant now joins the already operating Group sites in Green Bay (Wisconsin), Circleville (Ohio), Las Vegas, Hattiesburg (Mississippi), Haines City (Florida) and the U.S. head office in Horsham (Pennsylvania).

The integrated plant – i.e. including both the papermill phase (which leads from the raw material, the cellulose, to the production of paper) and the converting phase (which leads to the finished product, such as toilet paper, kitchen towels, napkins, tissues) – has involved a total investment of about $360 million, and employs over 300 people.

The Inola plant has been designed focusing on energy saving, reduction of water consumption and fibre loss in the production process and recovery (water, exhausts, and mechanical energy), in line with the company’s sustainable development strategy.

“The U.S. market is fundamental for the growth of the Sofidel Group and the new plant, enabling an enhanced production capacity and a further improvement of the geographical coverage, strengthens our position and creates the conditions for further growth,” said Luigi Lazzareschi, CEO of the Sofidel Group. “This is an important step, of which we are proud, all the more so in light of the results achieved in the first half of 2020 which improve last year’s already good performances.”

Award successes

Regina Blitz Extra Large Triple Layer Sheets won the Product of the Year 2019 award in the UK in the Household Paper category. Product of the Year is the UK’s largest piece of consumer market research into innovation in products for mass consumption. The Product of the Year award for innovation in the House Cleaning Accessories category also went to Asciugoni Regina in Italy. The award was given for its absorption capacity - thanks to the new maxi-sheets - and its “legendary” durability.

In the Away-From-Home line, Papernet Freshen Tech won the PPI (Pulp & Paper International) Award 2019 in the Tissue Innovation category. The PPI Awards, promoted by Fastmarkets RISI, are for excellence in tissue at an international level.

Sales in 2020

Despite the impact of the Covid-19 pandemic, 2020 has seen Sofidel strengthen its sales performance in the first six months of the year. The already good performances achieved in 2019 were surpassed as Sofidel recorded a 17.88% increase in net sales, from €94.5 million to €1.1 billion. n