Nicoletti, Natuzzi expand abroad
By Joan Gunin -- Furniture Today, April 24, 2005
High Point — Italian leather upholstery producer Nicoletti now owns its production facility in China, and next year its compatriot Natuzzi plans to open its first tannery in South America.
Nicoletti had owned the 80,000-square-foot China factory 50/50 with a Chinese furniture company when it opened last July, but Chairman Giuseppe Nicoletti bought out his Asian partner in February, U.S. Sales Manager Gianni Tucci said at last week's market here.
Like many other manufacturers, Nicoletti has turned to China for competitive advantages. Its plant in Fujian produces 10 containers a day and is poised to double that yield in the second half of this year, Tucci said. Design and product development work continues to be done in Italy.
Concentrating on leather and bycast leather hides finished in Italy, 95% of Nicoletti's Chinese production is dedicated to its U.S. accounts.
In a move to repay the Chinese for accommodating its plant, Nicoletti plans to open a network of 40 branded stores in China. "It is an offshoot of our commitment to China — a payback," Tucci said. No timetable has been set, he said.
Meanwhile, Natuzzi, which has made its promotional Italsofa brand in Shanghai, China, for four years, is set to open a tannery next year in Brazil, near Salvador de Bahia. The 150,000-square-foot tannery, representing an investment of 25 million euros, will "improve quality and competitiveness," said Pasquale Natuzzi, the company's founder, chairman and CEO.
Natuzzi already operates two production facilities in Brazil. With the tannery, the company will have about 600,000 square feet of production and finishing space in South America.
Italian-owned Incanto Divani's promotional line, Sofaitalia, also is made in South America. Other Italian manufacturers with production in China include Chateau d'Ax, Calia Italia's newly launched Divextra promotional line, and Italian-owned DeCoro.
U.S.-based companies that are among those sourcing leather upholstery in China include Bernhardt, Bradington-Young, Distinction Leather, FFDM/Fine Leather, Flexsteel, Kathy Ireland Home by Standard, Klaussner, Largo Leather and Universal Furniture.
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Nicoletti, Natuzzi expand global sourcing
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