Two leading Italian companies – specializing in technologies for solid wood processing – merged to create a stronger and more structured company, which is able to face future challenges with strength and effectiveness.
The new company is called Sphera System srl and will be active as of 1 January 2009, with some 70 employees. The company’s five owners are: Alvaro Mazzola, Armando Zappa, Antonio, Elio and Rosalinda Balestrini, the latter taking the role of managing director.
In the future, Sphera System machines will continue to be sold under both historical brands, to protect consolidated values such as tradition, technology and quality, that represent an irreplaceable value for both companies. By integrating their mutual experience, the new company will focus on the market of solid wood processing with a wider and more complete range of products, so that it can enter different industries with a stronger approach.
During a meeting held in Seveso, in the future Sphera System headquarters, we tried to understand the origins of the merger between Balestrini and MZ Project,which has surprised the world of Italian woodworking technology but not the smarter observers, who see the future of the industry in these operations, aimed at strengthening the manufacturing and distribution organizations.
We discussed with Elio Balestrini and Alvaro Mazzola, who told us why – being the first in Italy – they decided to unite their strengths.
How did you come up with this merger?
“Three years ago – said Balestrini – Acimall entrusted Kpmg with a study to analyze the situation of its member companies. The result was basically in line with the situation of the Italian small and medium companies, that are too small to keep up with the global market. The only solution is to merging and create stronger companies and groups, so that they can face the international competitiveness. We had already identified this need, especially to approach the international markets, and this market study helped us come to the decision.
With the globalization, all parameters have changed, competition has increased and we have to face a global scenario. Also small companies have to travel and invest constantly to support America, Australia and China, just to make an example; therefore, costs are high, whereas sales prices cannot be increased accordingly due to the abundant offer. The decision to join forces came from the idea of optimizing these costs and, above all, making use of more resources and energies deriving from the product integration and scale economy”.
And what have you done then?
“We started to look around – continued Balestrini – to plan our future according to the challenges the world delivers every day. With MZ Project, we saw that there were precious opportunities to seize together: complementary machines, often overlapping markets, same exhibitions, many things in common… And we have known each other for so many years… Mutual trust and high esteem are solid foundations to make this kind of plans. That’s how we started to flirt with this idea of merging”.
“You took this step after a positive year for the woodworking machinery industry, not in a negative period when you normally stop and think about the future… How come?
“Positive periods are the best moment to take new roads to foster the growth of the company – said Alvaro Mazzola.In hard times you are too busy trying to get to the end of the month… When our minds are free from worries, we can consider strategies, make significant changes or even set up a new company, as we actually did.
“Positive periods are the best moment to take new roads to foster the growth of the company – said Alvaro Mazzola.In hard times you are too busy trying to get to the end of the month… When our minds are free from worries, we can consider strategies, make significant changes or even set up a new company, as we actually did.
Then, you wouldn’t be smart if you think that, just because 2007 was good, then you have solved your problems. In the past few years, positive and negative cycles have taken turns more rapidly, and probably, if we hadn’t started talking about this opportunity one year ago, now we wouldn’t be able to do what we have done, considering the current economic troubles. But since we planned everything in a less complicated moment, now we just have to let the project go and look ahead… stronger and better organized than ever.
The merger into one company was challenging, we imagine…
“Yes, indeed! And we are not finished, yet. It took a year – explained Alvaro Mazzola – during which we analyzed all economic, organization and structural issues.
We are two companies with a long history, each being used to managing and working on its own. It’s like a marriage, where each person has to say bye bye to something, but if things work out, then the results are outstanding.
Having an important, clear and shared goal in mind, we lived through the difficulties as a spur to go further”.
What problems did you have to face during the creation of Sphera System?
“Well, nothing serious, actually: once we had a clear goal in mind, and after analyzing all steps to achieve it, we just bumped into some bureaucratic delays.
Once the merging process is completed, we might have some problems in terms of different managing habits, but we are willing to find a solution for everything.
Who’s going to have the greatest benefits from this operation?
“It may look strange, but new and old customers will take more benefits from it. With a bigger structure we will provide a better project and support service, as well as the great save derived from the merging. In this way we can invest on research and offer more and more innovative systems”.
When is the new company meant to be operative?
“Sphera System as a company is already existing and it can accept orders to be delivered during next year. Nevertheless, it will become the actual reference for our customers starting from 1st January, although the Balestrini and MZ Project brands will still be applied to our machines”.
Did you have any problems with the integration of your product ranges?
“We are both into solid wood processing – said Elio Balestrini – but MZ Project is focused on raw wood, whereas Balestrini is more dedicated to downstream operations and to the finishing of single workpieces. Each company has a specific focus. No overlapping, but a real complementary program. We count on this compatibility in order to acquire market shares, because there are customers who use machines of both companies”.
Regarding distribution, how is Sphera System going to be organized?
“Geographically, we are everywhere with our sales organization, therefore for the time being, we are going to optimize what we have. In a second step, we aim at involving those market niches we left aside in the past.
I’m referring to product ranges but also to companies that use our machines but we are not serving as we should, due to inadequate organization or lack of time.
We want to analyze possible different applications of our machines in new industries and maybe change or adapt our technology to meet the demand of new market segments”.
When we asked how you came up with the name Sphera System, the answer came from Sara Mazzola, in charge for the brand image of the new company.
“The brand name wants to communicate two important and vital messages to face the future: “Sphera” meaning world, global market, the natural environment where we must work everyday; and “System” meaning a systematic approach, not only machines, but industrial solutions which can define new trends in the solid wood industry and other sectors. Special attention will be devoted to capture market signals and requirements, which will be the drivers for our experts and designers to create innovative and performing products”.
Which kind of image are you going to communicate to the market?
“The two brands – added Sara Mazzola – will survive and support the business activity with their own image. Together, they boast 75 years of experience and customers associate both to quality and professionalism, values that have been developed through the decades and are harder and harder to find”.
How will Sphera System be different from Balestrini and MZ Project?
“Our company is going to devote particular attention to its customers, who will be real partners, promoting enduring and collaborative partnership. Both companies already had this attitude, but sometimes they couldn’t fully pursue it due to lack of time or human resources; but now it’s going to be a priority thanks to the availability of more resources”.
So, which are the first commitments for the future?
“First of all – said Alvaro Mazzola – we want to promote the new name without losing the identity of each company, as their experience and tradition in wood processing is the real heritage of this new organization”.
There haven’t been many mergers in our industry…
“As far as I know, we are the first. When the Kpmg study was presented in October 2006 – said Elio Balestrini – we all said it was extremely urgent to change our business approach, otherwise many small industries could disappear. We set to work immediately, and in less than two years we laid the foundations for our new future. Unfortunately, many Italian businessmen are just as fond and jealous of their companies as they are of their own houses.
On the contrary, in other countries, mergers are considered positively because they offer an opportunity to improve your organization. We wanted to go beyond this cultural barrier, because we were sure it was the right moment to take certain decisions and make a quality leap”.
by Danilo Morigi
Sphera System: newly born,
but with 75 years of experience
ultima modifica: 2008-10-01T00:00:00+00:00
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