Interview with Mr Angelo Radici

Face2Face
Mr Angelo Radici
Mr Angelo Radici
Chairman
Radici Group
Radici Group

Headquartered in Italy, Radici Group is one of the popular Italian chemicals companies operating at an international level. Radici Group's diversified businesses includes: Chemicals, Plastics, and Synthetic Fibres. One of Radici Group's key strengths is the synergistic vertical integration of its polyamide chain. The Group has total control over its production chain, from chemical intermediates, such as adipic acid and polyamide 6 and 6 6, to engineering plastics and synthetic yarn. Radici Group's products are exported all over the world, and are the starting-point for developments in the clothing, sport, furnishings, automotive, electrical/electronic and appliances sectors. The Group employs over 3700 workforce and records over 1500 millions Euro as consolidated turnover. Mr Angelo Radici, the son of the renowned industrialist Dr Gianni Radici, holds the positions of Chairman of the Board of Radici Group. In 1970s, after his studies in economics and business administration, Mr Radici joined his father in managing the ancestral family business, Tessiture Pietro Radici. In the 1980s he became Managing Director of Radici Chimica SpA. In 1994, Mr Radici was appointed Chairman of Radici Group. In the following year, 1995, he became a member of the Itema Board of Directors and, from 2000 to the present, is serving as Chairman. In 2002, following the reorganization of Radici Group, he was named CEO of Radici Partecipazioni SpA, the holding company controlling all of Radici Group’s production and sales subsidiaries in the chemicals, plastics, synthetic fibres and textile businesses. Mr Radici also sits on the Boards of Directors of Federchimica (Italian Chemical Industry Federation), Confindustria Bergamo (Bergamo chapter of the Italian Manufacturers’ Association). In his recent talk with Face2Face, Mr Angelo Radici comments on present scenario in the textile chemicals industry.

Mr Radici, nice to welcome you on this channel again, thanks for being with us. Setting the talk ball roll, we request your views about the present state of global textile-chemicals industry?

The signs of recovery coming from the major world economies show a slow but steady strengthening involving all industrial sectors, including chemical fibres. In chemicals and textiles, the depletion of inventories in the production chain of several segments — above all technical and industrial applications — caused by a turnaround in demand during the course of 2009 has resulted in an increase in business activity in Europe and America, spurred by the cautious rebuilding of minimum stocks.

Apparel is now the most critical end use, in view of the high stock levels throughout the entire synthetic fibres and textiles chain.

The recovery appears to be constant but slow for many reasons. It is still difficult to find credit and there is widespread excess production capacity, which also affects chemical fibres and reduces investments. Moreover, the slow pace of the upturn is a consequence of reduced available income caused by the high unemployment rate, which reduces final consumption and durable goods purchases, in particular. Indeed, in 2009, world industrial consumption of chemical fibres recorded a rise of 1.3% compared to a fall of 5.5% in 2008. For 2010 an increase of 2% is forecast.

The recovery can be mostly attributed to the rise in industrial consumption in China, the leading textile producer in the world with a 48% market share. The expansive fiscal policy of the Chinese government has stimulated not only growth in domestic consumption of textile products but also an excessive expansion of production all along the chain, in the face of depressed world demand for textile products due to the economic crisis. As a result, the rise of 7% in China mill consumption of chemical fibres in 2009, in a situation of reduced export demand, translated into into a heavy increase in stock levels by the end of the year.

During 2010, China will have to deal with the excess inventory from the prior year in one of two ways: by pushing hard on exports, which will surely hit against the limit set by weak worldwide demand, or by encouraging stronger domestic demand, which, given the current scenario, appears to be the best way to go.

Published on: 08/03/2010

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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