RESHORING CASE

Turolla

Company details
Code: 
Turolla
Company name: 
Turolla
Group name: 
Danfoss Group
Company country: 
Italy
Group home country: 
Denmark
Sector: 
C - Manufacturing
Sector detail: 
C28 - Manufacture of machinery and equipment n.e.c.
Sub-sectors: 
C28.1.3 - Manufacture of other pumps and compressors
Reshoring details
Reshoring announcement date: 
08/12/2014
Starting implementation date: 
January, 2015
End of Implementation : 
December, 2015
Reshored to: 
Italy
Location of affected unit(s): 
Castel San Pietro
Location code: 
ITD55
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
Know-how in the home country
Case narrative: 

Turolla is an Italian company, which merged with a larger Danish Group 'Danfoss' in 2012. The company produces motor gear products and fan drive systems, and specialises in hydraulic technologies.
Despite the fact that the lower cost of labour in Slovakia generates savings of at least 35%, Turolla plans to reshore its entire Slovakian production to a new plant in Castel San Pietro, Emilia Romagna, in Northern Italy. General Manager Riccaro Carra stated that Italian bureaucracy is the main disadvantage of the planned backshoring. However he believes that the local network of trained engineers, and the presence of high quality research centres and universities which are located in Emilia Romangna will compensate for it.

The new plant will not need to hire new employees at the start of operations, and instead will use 100 of the company's 200 current employees. However, the Danfoss Group plans a large scale recruitment of highly competent professionals in the near future.

Sources: 

Il Sole 24 Ore, 4 December 2014

Offshoring details
Offshoring date: 
2012
Offshoring location: 
Slovakia
Offshored business function: 
Production
Offshoring governance mode: 
In house (in own facilities)
Reason for offshoring: 
Merger and Acquisition
Notes: 
See also http://www.economiaitaliana.it/it/articolo.php/Comatrol-e-Turolla-OCG-risollevarsi-e-ancora-possibile?LT=IMPRE&ID=3964&ARCHIVIO=1