Italy

MEC-Carpensalda

Over the past three years, the landscape of the Italian superyacht construction industry has undergone a profound transformation, catalysed by the global Covid-19 pandemic in 2020. The pandemic not only fuelled demand for Italian superyachts, with many ultra-high net worth individuals (UHNWIs) seeking an escape, but also exposed vulnerabilities in the supply chain. In response, major Italian superyacht builders have embraced a strategy of vertical integration since 2022, acquiring suppliers to fortify their supply chains and ensure uninterrupted production capacity.As of 11 January 2024, the key companies leading the Italian superyacht sector in terms of unit output are <a data-gid="gid://syiq/Company/6046" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Azimut-Benetti Group (Company)">Azimut-Benetti Group</a>, <a data-gid="gid://syiq/Company/4876" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Ferretti Group (Company)">Ferretti Group</a>, <a data-gid="gid://syiq/Company/5565" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="The Italian Sea Group (Company)">The Italian Sea Group</a> and <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a>. According to <a href="https://sytiq.superyachttimes.com/" rel="noopener noreferrer" target="_blank" title="">SYT iQ</a>, out of the current 367 30-metre plus superyachts in-build, these four companies have a combined total of 243 superyachts in-build. This impressive figure represents around 66% of all yachts currently under construction in the Italian superyacht sector.<img src="https://photo-assets.superyachttimes.com/photo/298784/image/large-72edcf5b0f4ac812cda7ad817d6243a8.png" data-gid="gid://syiq/Photo/298784">Despite initial setbacks in 2020, the Italian superyacht sector exhibited a remarkable recovery, as evidenced by <a href="https://sytiq.superyachttimes.com/" rel="noopener noreferrer" target="_blank" title="">SYT iQ</a>'s data showing a significant increase in sales: 188 new yachts over 30-metres were sold in 2021, compared to just 67 in 2020. This surge in new build projects, particularly noted among leading shipyards, necessitated swift adaptations to the supply chain to meet the heightened demand attributed to the Covid-19 pandemic.<img src="https://photo-assets.superyachttimes.com/photo/298783/image/large-4c6dc274ecd7dfe671f3198fc2e02c3d.png" data-gid="gid://syiq/Photo/298783">Ferruccio Rossi, <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo&nbsp;</a>General Manager and President of Superyacht division, confirms the impact Covid-19 had on the supply chain pointing out that: “Covid highlighted the vulnerability of global supply chains and at the same time generated a number of challenges, including reduced production capacities, instability in international transportation and limited availability of certain materials. Addressing these challenges has become crucial to ensure business continuity and meet market demand. The acquisition of companies in the supply chain was a strategic move to mitigate the negative impacts of the pandemic”. <img src="https://syt-store-production.s3.eu-west-1.amazonaws.com/photo/298557/image/large-f2e80e39108e4bea63e6898484232afb.jpeg?X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Credential=AKIA52TLVJASOPFTPHWY%2F20240112%2Feu-west-1%2Fs3%2Faws4_request&amp;X-Amz-Date=20240112T161648Z&amp;X-Amz-Expires=900&amp;X-Amz-SignedHeaders=host&amp;X-Amz-Signature=dd0d56e57c0682f0f023fb332293a3058804150152edbf6fb014ecc25041ab7e" data-gid="gid://syiq/Photo/298557">When elucidating the strategic implications of <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a>'s acquisitions, Rossi emphasises that these moves strengthened operational resilience by increasing control over key segments of the supply chain. Additionally, Rossi notes that increased vertical integration provides flexibility to adapt quickly to global changes and reduces dependence on external suppliers.&nbsp;In offering his perspective on this latest development in the Italian superyacht sector and its implications, Vincenzo Poerio, President of <a data-gid="gid://syiq/Company/1661" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Tankoa Yachts S.p.A. (Company)">Tankoa</a> Yachts, identifies two primary reasons. “First, <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a>, <a data-gid="gid://syiq/Company/4876" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Ferretti Group (Company)">Ferretti&nbsp;</a>and <a data-gid="gid://syiq/Company/5565" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="The Italian Sea Group (Company)">The Italian Sea Group</a> are listed on the stock exchange, and publicly traded companies are under constant shareholder pressure to grow and to increase their overall size and revenue. Moreover, acquiring some of their suppliers has had a double advantage: first and foremost these firms have been able to push the firms that they acquired into producing mainly, or even exclusively for them. An effect of these acquisitions is that these firms have increased their production output. The second reason is that it was not easy to find suppliers during the pandemic, and large shipyards have chosen to buy them to guarantee a workforce in key activities and also prevent the suppliers from working for their competitors”. <img src="https://photo-assets.superyachttimes.com/photo/226017/image/large-b7a066e3157a0684982841a6f5d205e2.jpg" data-gid="gid://syiq/Photo/226017">Marco Arnaboldi CEO of <a data-gid="gid://syiq/Company/6700" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Centouno Navi (Company)">CENTOUNONAVI</a> posits a similar view point stating that: “I perceive it as a strategic necessity for companies to manage their suppliers actively, at times aiming to limit competitors rather than solely enhancing their own strength. In the current landscape, challenges persist in supply chains, including issues with sourcing building materials. Companies listed on the stock market engaging in acquisitions often experience an increase in their stock value, demonstrating the market's positive response to their strategic moves”.As for <a data-gid="gid://syiq/Company/6046" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Azimut-Benetti Group (Company)">Azimut-Benetti Group</a> which remains the only private company of the top four firms, they have adopted a distinct strategy in their relationship with their suppliers. They have continued to work without acquiring their suppliers and continue to collaborate with their main suppliers. Being large firms, they provide large volumes of work to their suppliers, and this helps forge favourable long term agreements. According to Poerio, this option as ideal for private firms that don't pursue vertical growth through acquiring suppliers to demonstrate larger sales. <img src="https://photo-assets.superyachttimes.com/photo/113484/image/large-8103458f97b31a7c19645284bbcfbb8a.jpg" data-gid="gid://syiq/Photo/113484">Moreover, Poerio underscores the significance of cultivating robust and meaningful relationships between shipyards and suppliers. This emphasis is crucial not only to secure ongoing work for the suppliers, but also to ensure a continuous and seamless collaboration. “This is also important because a strong partnership means using the same skilled workforce and therefore improves the quality of the products. I am firmly convinced that the shipyard that acquires suppliers creates a challenging dynamic in the relationship. In fact, in order to produce good quality products, suppliers need to achieve maximum efficiency and quality of their products. If the owner becomes the main client, the supplier can be easily forced to do what the parent company requests. It can potentially become a conflictual and skewed relationship. When the supplier is owned by the client, it often results in an unnatural relationship. It is important to encourage suppliers to develop their own autonomy &nbsp;and ability to deal with the commercial side of the business".<img src="https://photo-assets.superyachttimes.com/photo/295946/image/large-5fbd2c3349d9f4d1ab09904a50efd24d.jpg" data-gid="gid://syiq/Photo/295946">In an article featured in <a href="https://www.superyachttimes.com/yacht-news/chris-bizzio-ceo-of-iacomelli" rel="noopener noreferrer" target="_blank" title="">Issue 3 of How To Build It</a>, Chris Bizzio, CEO of <a data-gid="gid://syiq/Company/7419" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Iacomelli (Company)">Iacomelli</a>, puts forward a similar viewpoint on the potential long-term impact these series of acquisitions can have on the supplier-shipyard relationship. Bizzio, who took over the steel manufacturer in 2020, stands strong in the decision to remain independent, asserting that: “We strive to develop unique solutions that best answer our customers’ needs. I see that shipyards are taking over key suppliers, but after a while these suppliers stop innovating because they are absorbed by the 'system'. We are free to explore different aspects of our business and to find out-of-the-box solutions. Some may think the share of the pie is getting smaller, but when you’re able to find bespoke solutions for your customers, you have a new market open to you”.As for the ramifications on shipyards in Italy with a comparatively lower output, Poerio elucidates that shipyards are compelled to “collaborate with various suppliers or, even better, bring some aspects of the supply chain ‘in house’. Consequently, they face challenges such as higher energy bills, increased demands on space and facilities, the need for additional capital to invest in machinery, and expanded spatial requirements. Alternatively, another strategy also involves fostering improved relationships with firms operating in different sectors and persuading them to venture into the nautical sector”.<img src="https://photo-assets.superyachttimes.com/photo/298552/image/large-7852cafec36587fb5fa33772c6d2e93d.jpeg" data-gid="gid://syiq/Photo/298552">The question of whether the main shipyards will persist in acquiring suppliers remains uncertain, given that superyacht shipyards operate with a finite clientele and must consider sustainable growth. What is clear, however, is that these major shipyards have already achieved significant consolidation and are poised to maintain dominance in the superyacht output. It will be intriguing to observe how other shipyards in the Italian superyacht sector will respond to these acquisitions. <img src="https://photo-assets.superyachttimes.com/photo/265932/image/large-01b08e3d1324671c97486224c5953a4d.jpg" data-gid="gid://syiq/Photo/265932">List of recent acquisitions in the Italian Superyacht Sector in the past two years:&nbsp;<a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo:</a>• 48% Stake in Metal Carpentry Firm <a data-gid="gid://syiq/Company/5083" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="MEC-Carpensalda (Company)">Mec-Carpensalda</a> (11/04/22).• 66% Stake in Duerre Furnishings Company: Initial stake acquisition of 33% on 29/04/22; Expanded acquisition of another 33% on 02/05/23, showcasing a progressive investment in the furnishings sector.• 49% Stake in Seaenergy (28/03/23), a company specialising in electronics and electrical systems for the yachting sector.• 100% Stake/Ownership of Arbatax.<a data-gid="gid://syiq/Company/5565" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="The Italian Sea Group (Company)">The Italian Sea Group</a>:• Acquisition of Furniture Company <a data-gid="gid://syiq/Company/7113" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Celi S.r.l (Company)">Celi</a> (18/04/23).<a data-gid="gid://syiq/Company/4876" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Ferretti Group (Company)">Ferretti Group</a>:• Acquisition of Masello, a company experienced in wooden furniture for yachts). •&nbsp;<a data-gid="gid://syiq/Company/7073" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Fratelli Canalicchio (Company)">Fratelli Canalicchio</a> (29/09/22), a company specialised in static exteriors and automatic kinetic systems for yachts.

Why are Italian shipyards acquiring supply chain companies?

Major Italian superyacht builders have embraced a strategy of vertical integration since 2022.

SuperYacht Times Synopsis April 

The SuperYacht Times Synopsis, as brought to you by SYT iQ, gives you the rundown of the top business stories and market reports from last month.  

SYT Synopsis: A roundup of April 

The Italian newspaper La Nazione and other news sources have reported that <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a> has acquired a 48% stake in <a data-gid="gid://syiq/Company/5083" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Mec-Carpensalda (Company)">Mec-Carpensalda</a>, an industrial metalworking company active mostly in the field of shipbuilding and repairs, including hulls and superstructures for superyacht brands. Founded in 1965, the company website says it has two production plants, one in Livorno and the other in Pisa, for a total of around 10,000 square metres.<img src="https://photo-assets.superyachttimes.com/photo/121695/image/large-fc60fc8141ace7fe4a998b6551f5d1d5.jpg" data-gid="gid://syiq/Photo/121695"><a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a> has yet to comment on the investment, which significantly increases its steel and aluminium production capacity, but the acquisition appears to be a done deal and the new company to emerge from the partnership between <a data-gid="gid://syiq/Company/5083" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Mec-Carpensalda (Company)">Carpensalda</a> and <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a> already has a board of directors chaired by Bruno Lotti that includes managing director Riccardo Cima, Giacomo Lotti and Ferruccio Rossi, president of <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a>’s superyacht division."<a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a>’s arrival in the [Pisa] dock opens up interesting prospects from the point of view of employment,” says Salvatore Pisano, sole director of Navicelli di Pisa, the public company responsible for managing the Pisa canal and docklands. “I can say that <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a> chose <a data-gid="gid://syiq/Company/5083" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Mec-Carpensalda (Company)">Carpensalda</a> and the Navicellis precisely because our work in recent years has made Pisa’s nautical hub extremely attractive and capable of combining industrial development with environmental compatibility."

Sanlorenzo expands to Pisa

Italian press has leaked news that Sanlorenzo has acquired stake in Mec-Carpensalda in Pisa.

Sanlorenzo extends its production capacity to Pisa with stake in Mec-Carpensalda

The Italian yacht builders, <a data-gid="gid://syiq/Company/212" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Benetti SpA (Company)">Benetti</a>, have celebrated the laying of the keel of their 67-metre superyacht FB285 with a traditional ‘coin ceremony’ at the <a data-gid="gid://syiq/Company/5083" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Mec-Carpensalda (Company)">Mec-Carpensalda</a> shipyard in Pisa. The superyacht features exterior design from long term <a data-gid="gid://syiq/Company/212" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Benetti SpA (Company)">Benetti</a> design partner <a data-gid="gid://syiq/Company/4478" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Giorgio M. Cassetta (Company)">Giorgio M. Cassetta</a>, while her interiors have been penned by <a data-gid="gid://syiq/Company/6354" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Askdeco (Company)">Askdeco</a>, in collaboration with <a data-gid="gid://syiq/Company/212" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Benetti SpA (Company)">Benetti</a>’s style department.<img src="https://photo-assets.superyachttimes.com/photo/196952/image/large-385d5727dcf029ef464f4762bd81b66d.jpg" data-gid="gid://syiq/Photo/196952">Now that her keel has been laid, the construction on the superyacht, which features a steel hull and aluminium superstructure, will begin in earnest. The superyacht is set to be launched during the second half of 2022.<img src="https://photo-assets.superyachttimes.com/photo/196953/image/large-111c0ecbcce9775de42f90a4c3ce2771.jpg" data-gid="gid://syiq/Photo/196953">The owner has had a considerable influence on the interior styling of the vessel, which have been custom made to his specifications. There has been a prioritisation toward liveability, with the owner wishing to remain aboard for long periods of time. &nbsp;The superyacht design is an evolution of <a data-gid="gid://syiq/Company/212" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Benetti SpA (Company)">Benetti</a>’s FB284 platform and will benefit from the latest technology and engineering. Like their 2019 superyacht, the 63-metre&nbsp;<a data-gid="gid://syiq/Yacht/5920" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Metis 63.0m (206'8&quot;)Benetti SpA2019">Metis</a>, the FB285 will have circular windows, a generous dining area and large amounts of glazing on the main deck.<img src="https://photo-assets.superyachttimes.com/photo/99785/image/large-193d5629886b635557c070baa5f5d05f.jpg" data-gid="gid://syiq/Photo/99785"><a data-gid="gid://syiq/Company/4478" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Giorgio M. Cassetta (Company)">Giorgio M. Cassetta</a> commented: “The clear ideas and the personal wishes of the owners played a leading role in this project. I was fascinated by the suggestions they gave us, with careful attention to detail dictated by great experience, thanks to which we will create a yacht with an unmistakable design”.

Keel laid on 67m Benetti

Benetti have celebrated the laying of the keel of their 67-metre superyacht FB285, with a traditional coin ceremony in Italy.