The CEO of Smaltochimica discusses strategy, research, and sustainability in exclusive interviews for Ceramicanda.

The challenges of 2024, the drive for innovation, and the value of sustainability: Federico Piccinini, CEO of Smaltochimica, was a guest on ALLFORTILES ON THE ROAD for an open discussion about the state of the ceramic industry and the strategies to navigate an evolving market. From economic transitions to research investments and the strong bond with the local community, Piccinini provided a clear overview of the company’s vision, emphasizing how chemistry is not just technology but also a bridge that connects businesses, people, and communities.

Below is the full interview for IL DSTRETTO:

“After a 2023 driven by the previous year, we face a still complex 2024”

Federico Piccinini, CEO of Smaltochimica, is well aware of the challenges posed by a transition marked by various tensions affecting the supply chain. “But I am convinced that our companies have the tools to effectively react to these ups and downs.”

“The regression that marked the second half of 2023 will also be felt in the early months of 2024, after which we hope the situation will ease.” Federico Piccinini, CEO of Smaltochimica, measures with a mix of concern and confidence a transition that is anything but simple for the industry. As a guest on ALLFORTILES ON THE ROAD, Piccinini pointed out the ‘two-speed’ nature of 2023 and did not hide the fact that the highs that defined the year, particularly from June to December, will inevitably impact the newly begun year as well. “2023 was a year of alternating phases because it started at full speed, benefiting from the backlog of 2022 orders, which paradoxically came primarily from Italian companies. Thanks to their superior digital and material decoration technologies, they were able to gain more market share compared to foreign competitors.”

What happened next?
“Unfortunately, in the second half of the year, the ongoing geopolitical tensions in Russia and the general downturn in the construction supply chain, also influenced by interest rates that do not encourage investments in the sector, led to a sharp decline. This slowdown was widespread and transversal, and its effects were still evident after the summer.”

A long-lasting wave: how do you deal with it?
“What I can say is that, after the summer warning signs, September’s Cersaie was the first edition in my memory to register a significant cooling in orders and sales. This suggested difficulties that require immediate action. However, I firmly believe that Italian companies are accustomed to these fluctuations, which have characterized production and commercial dynamics even before COVID-19. In my view, the system has the necessary tools to react to such situations and move forward. Our ability to adapt, our focus on research, our habit of investing and innovating, and the flexibility of our companies are levers we will undoubtedly activate—despite the challenging context, also due to a supply chain that constantly tests us and complicates planning.”

In what way?
“The past few years have been incredibly difficult to manage for a company like ours, which produces mixed compounds with pre-determined pricing, often established in advance with clients. Between 2021 and 2022, we witnessed unexpected and unpredictable increases of 30% to 40% in raw material supplies, energy costs, and logistics. After a period of relative stability at the end of 2022, there was a slight decrease, but our operating conditions remain complex. Just consider the impact of rising interest rates, which are essential for self-financing our activities. The ‘stabilization’ of supply costs, which initially brought some relief, has been completely offset by interest rate hikes—so we are essentially back to square one.”

How do you move forward in such a scenario, with a challenging 2024 ahead?
“We look ahead and push forward with research. Smaltochimica had already done important work on products that experienced the highest cost increases while maintaining its competitiveness and the validity of its offerings, which remain defined by quality and service. However, we are aware that we are living in a phase that I would describe as at least uncertain. The major chemical suppliers we depend on as customers use payment terms as leverage to prevent any positive cost adjustments for our clients, making the situation even more tense.”

A challenging context for a family-run business with deep local roots…
“We are a medium-sized, family-run company that takes pride in its ties to the local area and has always been committed to the community. We have long made important choices in terms of both social responsibility and environmental sustainability, and I believe it is essential to continue investing in this direction. Years ago, we obtained ISO 14001 certification, and this year we plan to achieve ISO 45001 certification. We are strongly focusing on innovative water-based formulations to reduce emissions, evolving a production range that is particularly suited to the ‘material digital’ segment. This is an area where much of the most advanced production is concentrated, also thanks to our expertise as organic chemists, a specialization we have long cultivated in this field.”