RESHORING CASE

Safilo

Company details
Code: 
Safilo
Company name: 
Safilo
Company country: 
Italy
Number of employees: 
8108
Sector: 
C - Manufacturing
Sector detail: 
C14 - Manufacture of wearing apparel
Sub-sectors: 
C14.1.9 - Manufacture of other wearing apparel and accessories
Reshoring details
Reshoring announcement date: 
25/07/2015
Starting implementation date: 
January, 2016
End of Implementation : 
December, 2020
Reshored to: 
Italy
Location of affected unit(s): 
Martignacco(UD),Longarone(BL),Santa Maria di Sala(VE)
Location code: 
ITD42,ITD33,ITD35
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
"Made in" effect
Firm's global reorganization
Increased home country manufacturing productivity (e.g., in US)
Need for greater organizational flexibility
Offshored activities' control complexity
Untapped production capacity
Case narrative: 

Safilo Group S.p.A. is an Italian company that designs, produces and distributes prescription frames, sunglasses, sports eyewear, ski goggles, skil helmets, and cycling helmets under its own five house brands and 22 licensed brands.Their products are primarily manufactured in three Italian facilities with an additional European plant in Slovenia. The company also has two non-european plants, one in USA and one in China, and distributes to markets in 130 countries worldwide.
Recently, the company decided to buy new machinery in order to redevelop the production site in Martignacco, Italy. Prior to this, the company used public redundancy funds in order to protect workers at the site due to low levels of demand. The new machinery will mean that the site has the capacity to be involved in all steps of production, which gives new hopes to the local workers. Sources do not specify more about the long term location strategy, or reasons for the backshoring, except for untapped production capacity at home.

Sources: 

Il Messaggero Veneto, 25/07/2015

Il Messaggero Veneto, 14/01/2016

La Repubblica, 15/02/2016

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production
Host country geographical area: 
China