Natuzzi (C)

Company details
Company name: 
Company country: 
Number of employees: 
C - Manufacturing
Sector detail: 
C31 - Manufacture of furniture
C31.0 - Manufacture of furniture
Reshoring details
Reshoring announcement date: 
Starting implementation date: 
January, 2017
End of Implementation : 
December, 2017
Reshored to: 
Location of affected unit(s): 
Province of Bari
Location code: 
Reshored business function: 
Partial or Total reshoring: 
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
"Made in" effect
Automation of production process
Implementation of strategies based on product/process innovation
Untapped production capacity
Case narrative: 

Natuzzi is an Italian company that produces high-end furniture and sofas. In the past years, the company offshored most of its production in order to keep its position in the market. Currently the company produces in Italy, China, Romania and Brasil, but the company is planning a backshoring programme expected to start in 2017. The plan involves keeping the manufacturing of private label abroad and focusing production of own brand in Italy. The backshoring plan aims to backshore 50% of production currently in China and Romania. The production in Brasil should not change due to local market conditions that allow  selling the full production. Moreover, from 15 October 2016 Natuzzi is going to switch from outsourcing to insourcing of foam cutting activities for sofa production. In first quarter of 2016, Natuzzi's turnover from its own branded sofas accounted for 71% of total turnover, totalling 120.7 mln€. EBITDA reached 4.3mln in the same period while it was 1.4mln in 2015. EBITDA margin rose 5% to 34.3%, net loss equalled 200.000€ from 9,8mln€. Natuzzi aims to decrease manufacturing costs from 1.13€ to 0.5€ per minute, thanks to the innovation of the production process envisaging cuts in dead time and manufacturing waste. The new production model has already been implemented at the Santeramo site, and it is currently being implemented at the Laterza site, it required 4,6mln€ in R&D investment.

Meanwhile, the company is investing in several plants in Italy in order to reduce costs and gain competitivity. The plan should help Natuzzi to employ part of 330 jobs currently in mobility.



Il Sole 24 Ore, 30/08/2016

Offshoring details
Offshoring location: 
Offshored business function: