System Group closes 2016 with 18% growth

System Group has reported another growth year. The group led by Franco Stefani has ended 2016 with a consolidated turnover of 440 million euros, 18% growth following the 15% upturn in 2015. This was net of the sale of 60% of the shares of System Logistics SpA to the German group Krones in June 2016.

At the customary end of year press conference, Stefani noted the significant growth achieved by all the group’s divisions: Modula +25%, Logistics +20%, Ceramics +13%, Laminam +35%. This growth was driven by major investments considering that over the last 12 months the group has built or renovated 70,000 sq.m of industrial areas and 3 production sites in order to increase its now saturated production capacity.

One of the most significant investments was the new Laminam factory in Borgotaro opened in September, which doubles the company’s production capacity for large-size ceramic panels. An additional facility is due to be opened in March 2017 in Balabanovo near Moscow. The Modula division (automatic vertical storage systems) is also increasing its international presence. After starting up the plant in Lewiston in the United States and expanding the facility in Salvaterra (Reggio Emilia, Italy), it is now completing the new production site in Suzhou (China) which will serve the Asian market. Total production capacity will reach 2500 storage systems per year, from which the division expects to generate a turnover of 150 million euros by 2018.

The excellent results of the Ceramics division derive from its cutting-edge technologies (digital, Lamina Impianti and automation) and the fact that 5% of annual turnover is set aside for R&D.

The System digital decoration systems have become established all over the world and have reached a coverage worthy of a market leader. One current project involves expansion into non-ceramic segments (wood, metal, glass).

Innovation of process technology for pressing large size ceramic panels has continued. The latest high-productivity solution called LAMGEA, which was unveiled at Tecnargilla, has already been commissioned in India and Indonesia.

Automation for the end-of-line stage (sorting, packaging and palletisation systems) continues to be a major market success. "Today we are seeing less global demand for new plants but growing requests to upgrade existing lines. This is an important market in which our automated systems are being used everywhere to replace machines first installed 15 years ago," noted Franco Stefani.

Another important development is that of technologies such as PRIME for factory 4.0 digitalisation, a platform of software services capable of managing the architecture of all interconnected machines on the production line and controlling entire facilities.

Commenting on the state of the various world markets, Stefani stressed the dynamism of the Italian ceramic market (which accounts for 14-18% of turnover) and in particular the company’s strong growth in both China (+25%) and India thanks to its range of hi-tech offerings (digital technology and systems for large-format panel production) that really make a difference compared to Chinese technology. Other markets that maintained strong demand through the year were Indonesia, Malaysia, Vietnam, Mexico and the United States.

With an international presence in 25 countries and with 36 subsidiaries worldwide, System Group employs 1750 people, including 600 outside Italy. “This is the true value of the company, whose worth is enhanced by the fact that it is distributed”, commented Stefani, who with 50 years of business experience behind him plans to hand over the reins of the company by 2020, ruling out however any solution that fails to guarantee continuity and industrial growth.