Cartiera Fornaci and FM Cartiere: cohesion and strategy for operational efficiency - Cartiera Fornaci
Cartiera Fornaci and FM Cartiere: cohesion and strategy for operational efficiency
Cartiera Fornaci was founded in Fagnano Olona in 1960 by Pieraldo Cattaneo who dedicated his life to the search for something innovative, arriving at the production of the first sheets of recycled cardboard. He worked hard to ensure that the paper mill could have a high regard from all consumers, investing in machinery, guaranteeing a quality product capable of satisfying the needs of the market of those years.
In the mid-eighties, the founder's two sons took over the reins of the company, consolidating it and laying the foundations for subsequent growth. With the entry of the third generation into the commercial area, it was decided to take it abroad, thus creating a network of representatives who would guarantee greater control as well as a direct relationship with foreign customers.
Pieraldo's grandchildren, harbingers of a profoundly more innovative vision, understood the need to expand with the aim of producing something more refined than in the past, thus opting for an acquisition operation.
Today the paper mill – led by Benedetta Cattaneo, third generation together with her brothers and cousins – reports excellent data, has more than 50 employees and an annual production of 55,000 tons of cardboard. Despite the 2008 crisis and the 2019 pandemic, Cartiera Fornaci boasts excellent solidity, capable of facing the future and new changes.
But let's find out more about the future that is taking shape for Cartiera Fornaci by speaking directly with Benedetta.
WHERE DID THE IDEA FOR AN ACQUISITION COME FROM?
Cartiera Fornaci SpA deals with the production of recycled Grey Cardboard for the production of cardboard cores and corners and interlayers. Other products are White/Grey and White/White in reels and formats intended for paper mills involved in the production of packaging and trays for food use.
The acquisition of Cartiera di Momo was motivated by the desire to diversify production, focusing on food packaging, in line with the growing post-pandemic demand and the decline of plastic.
The proximity between the two companies facilitated the process. However, Cartiera di Momo faced serious internal difficulties and a production stoppage that further compromised the situation. Despite this, the previous success of Cartiera Fornaci motivated the acquisition, aiming to revive the brand on the market and expand the commercial opportunities of the two companies.
COULD YOU GIVE US SOME INFORMATION ON THE ACQUISITION METHOD?
FM Cartiere SpA, a subsidiary of Cartiera Fornaci SpA, has been leasing Cartiera di Momo since 2020, in which Cartiera shareholders previously acquired majority shares. This strategic move was motivated by the proximity of the bankruptcy of the Momo company, which would have significantly complicated the rescue process, requiring greater financial commitment and an extended timeframe. The acquisition was financed internally by Cartiera Fornaci, demonstrating the financial strength of the company.
With the change of management, the Cattaneo brothers assumed a predominant role in the management structure, holding 66% of the shares. This change led to a new corporate management, aimed at reviving the fortunes of the acquired company. A five-year agreement was stipulated, with the commitment of FM Cartiere to pay off the debts and restructure the Momo company. The agreement was approved by the judge, recognizing the good intentions and financial capabilities of Cartiera Fornaci and the Cattaneo family at the head of the operation.
As part of the acquisition, Cartiera Fornaci has committed to maintaining the Momo company as a 98% subsidiary, thus contributing to its preservation. The long-term goal is to create a cohesive group, with a unified management and a shared commercial apparatus, in order to reduce costs and improve operational efficiency. This strategic approach is driven by the need to address market challenges more effectively and to ensure greater financial solidity.
The new structure will see a parent company and two operating companies in Momo (Novara) and Fagnano Olona (Varese).
Cartiera Fornaci faced considerable difficulties in reviving the company in Momo. After a prolonged period of inactivity, the plants required a long and expensive start-up period. The new management had to face organizational challenges, including a sales department that did not adapt to market changes and the need to introduce new management figures to improve company control.
Restoring the company's credibility in the market was particularly difficult, as customers, suppliers and banks had lost confidence in the company. The parent company had to take on significant financial responsibilities to regain the trust of investors and banks. In addition, it focused on customer loyalty through product improvements and a more targeted approach to customer satisfaction.
The integration between the two corporate entities was equally challenging, especially considering
or the historic and family management of Fornaci, which had to adapt to a new organizational structure and integrate Momo's staff. Although Momo's employees were retained, many felt demotivated and disoriented, creating further management challenges.
A year and a half after the signing of the agreement, the main challenge for the parent company is still to identify qualified and motivated personnel who can contribute to the total recovery of the company. With the introduction of qualified professionals and a managerial approach, we moved on to coordinating resources and directing them towards the subsequent objectives of optimization and efficiency of the group.
HOW WOULD YOU SUMMARIZE MOMO COMPANY?
Founded in 1963 and based in Novara, it specializes in the production of coated cardboard with an annual production of approximately 70,000 tons per year. Thanks to a detailed internal organization and an appreciated logistical efficiency, Momo is able to satisfy the needs of small, medium and large customers, distinguishing itself for the quality of the product offered.
It also stands out for its commitment to environmental sustainability, using mainly recycled material for production and ensuring a high percentage of recyclability.
Despite the difficulties encountered in the past, Fm Cartiere Spa has chosen to focus on the company's strengths, such as a solid customer portfolio and an effective internal organization. Thanks to the efforts of the Cattaneo Family, the Momo company has a secure future and focuses on optimizing production and innovating its products to reach an increasingly wider market.
Carta&Cartiere – March / April 2024 (cartaecartiere.com)
