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Interview with Mr Francisco Lorenzo

Mr Francisco Lorenzo
Mr Francisco Lorenzo
Director (marketing & sales), Paper & Forest Products
Sniace SA
Sniace SA

Sniace SA is a chemical industrial group with four business division namely the Cellulose and Viscose, the Generation and Energy Services, the Biofuel, and the Forest Division. The Group was founded on December 1, 1939 with corporate head quarters in Torrelavega (Cantabria). Sniace Group’s Cellulose and Viscose division through its affiliate Celltech, produces 66000 tonnes of total chlorine free cellulose annually. Approximately 40% of the whole cellulose paste production is vertically integrated to produce, through its affiliate Viscocel, 26000 tonnes a year of total chlorine free viscose staple fiber. The Viscose factory, through the recovery plant, produces 8000 annual tonnes of sodium sulphate anhydride. The Group employs more than 500 people in four working centres placed in Cantabria, Madrid, Warsaw and Shanghai. Its portfolio includes clients from Europe, Asia and America. Mr Francisco Lorenzo is the Director (marketing & sales),Paper & Forest Products division at Sniace since February 2005. His responsibility includes developing strategies of the global business of Viscose Staple fibre, Dissolving Pulp and Sodium Sulphate business. He also looks after global logistics of the company, product development. Presently, Mr Lorenzo is also member of International Committee of Rayon and Synthetic Fibres (CIRFS). From 2001 to 2005, Mr Lorenzo had been Export Manager for VISCOCEL SL (Textiles), and from 1999 to 2001 he was Sales Engineer at Sniace (Chemicals industry) Mr Lorenzo has acquired Masters in Managing and Marketing from ESIC Business & Marketing School (2004) and is a graduate in Chemistry from Universidad Autónoma de Madrid. He is fond of sports in particular Basketball. Speaking with Face2Face team, Mr Francisco Lorenzo offers his stance on world market of synthetic fibres in current times.

Change is inevitable. Change is continuous. Consumers have changed and so has the Industry. Am sure you would take this. You have been in the industry for 75 long years, so, how would you word for the changes you have witnessed in your industry? How has Sniace Group re-engineered itself through this long journey?

World industry and marketing have been changing dramatically during the last years, but every day faster and faster. Many years ago, you received orders and you simply supplied them, but nowadays you need to pursuit the market and advance the changes to succeed. Being focused in the marketplace, controlling the costs, is the way of managing the fiber business right now. Nowadays, with the current economical situation, studying the changes of market share between private labels and leaders due to their position in the mind of final customers, can teach a lot in how quickly you need to react.

Sniace group has made big efforts to update its technology, not only from the environmental point of view, but also in some niche applications that is positioning our products just in the right place.

 

On what corporate ethics and values do Sniace distinguish itself and its products amongst the cluster of companies?

We have made strong efforts in environmental matters. We probably are the company that has invested more money per Kg of fiber manufactured to have an environmentally friendly process. Our goal was to become one of the more environmentally friendly factories in the world that is producing dissolving pulp and viscose. Although we firmly continue with our schedule updating our technology, I really think that goal has already been achieved.

Sniace Group caters to technical textiles market. Where do you see this industry making headway to? What share of your products is marketed to this segment?

We have been in that market for years as we understood long time ago that it was one of the fields we needed to supply in order to survive in such a competitive global market. We have quite a big share in these products, but also it is important to understand that this is only one more application. In fact nowadays this field is suffering a lot as a result of the precarious situation of some industries like the automotive or housing.

What is your stance on world market of synthetic fibres in current times? What is its total size and what share does Sniace embark?

We produce artificial fibers. Our share in our field with today’s production due to the economical crisis is near the 1.5%.

How do you feel the heat of competition in your business segment? To enumerate the countries that you envisage as burgeoning markets in your sphere, which all names would you tick? What strategy can help players of your capacity to fight out the competition?

Nowadays, after the decrease in the consumption caused by the economical situation as well as by lack of the confidence of the consumers in the economy, there is an overcapacity in almost every kind of fiber all over the world. Some companies are getting nervous and selling under costs, thinking exclusively in their short term cash position. That is an emotive reaction but not a successful strategy. Normally companies that do that will lose, not only in the short term but also in the long term. If fact, in the sectors where there is a leader that keeps his position, every player, including the leader, tends to get a long term success.

Regarding my company, I prefer not to identify any special country in order not to give a single clue to my competitors. I am sure they will find out by their selves.

Considering the present movements in cotton market, what repercussions on your business can you predict?

In long term, production of cotton is growing slower than cotton demand, due to the competition for land for other harvest mainly related with energy markets. The good news for us is that viscose fiber is one of the easiest choices for many of the applications that normally use cotton, so we will make the best of this situation.

In short term, there are so many factors involved, that I am not ready to make a forecast. Make no mistake, one third of the fiber produced in the world is cotton, which is very far away from the quota of viscose fiber.

How much does Sniace accentuate on EHS (environment and human safety) policies?

This is one of the more important thoughts in our business culture. People are the most important asset of any company as they decide its future with their daily work. We know it very well at Sniace as our workers have proved it several times before when difficulties appeared.

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Published on: 23/03/2009

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.