RESHORING CASE

Nicos International

Company details
Code: 
Nicos
Company name: 
Nicos International
Group name: 
EUROPAK SpA
Company country: 
Italy
Group home country: 
Italy
Number of employees: 
501
Sector: 
C - Manufacturing
Sector detail: 
C31 - Manufacture of furniture
Sub-sectors: 
C31.0.9 - Manufacture of other furniture
Reshoring details
Reshoring announcement date: 
08/04/2016
Starting implementation date: 
April, 2016
End of Implementation : 
April, 2016
Reshored to: 
Italy
Location of affected unit(s): 
Vazzola
Location code: 
ITD34
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
30
Reasons for reshoring: 
"Made in" effect
Automation of production process
Delivery time
Implementation of strategies based on product/process innovation
Know-how in the home country
Proximity to customers
Retailer/customer pressure (e.g., Wall-Mart)
Case narrative: 

Nicos International is specialised in the manufacture and B2B distribution of solid surfaces for bathroom furniture. Nicos is part of EUROPAK SpA, a larger Italian group.  The company has already received orders for 60.000 units of shower bases to be shipped by 2020. Within the framework of a quality improvement strategy, the company has implemented the backshoring  of the automated business unit that manufactures shower bases. The production will be moved from its Bulgaria-based production site to Italy, while the company will keep the manufacturing of basins on four different production lines in Bulgaria. The company currently employs 120 workers in Italy and 300 in Bulgaria. Nicos is also planning to implement a new production site in Poland, which should be operational in 2017, in order to reach the markets of Northern Europe.​ Nicos International already exports 50% of its production.

Sources: 

Il sole 24 ore, 08/04/2016
Il sole 24 ore, 24/05/2016

Offshoring details
Offshoring date: 
1998
Offshoring location: 
Bulgaria
Offshored business function: 
Production
Offshoring governance mode: 
In house (in own facilities)
Offshoring entry mode: 
Wholly owned
Reason for offshoring: 
Labour costs
Taxation