The column – An Italian in China
Since last year, with the official start of Tofflon’s project in Italy, this Sino-Italian collaboration has attracted wide attention. What were the main factors that led to the decision to choose Italy as a seat for the new production plant?
Tofflon took into consideration three main dimensions for the implementation of the project:
- Avoid geopolitical risks through local operations, reduce the risks associated with commercial barriers and political instability for the Tofflon group, guaranteeing the continuity of the supply chain and supporting the growth of the market
- Greater proximity to local customers in Europe (providing training and educational equipment to allow customers to quickly get to know the products and prevent customers from meeting potential problems in future practical operations, promptly providing services to customers and spare parts services). This is particularly relevant for pharmaceutical multinationals and local CDMOs, which require more and more localized production capacity, controllability of deliveries and timeliness in after-sales services, thus strengthening the trust of customers in the quality and reliability of Chinese companies.
- Constitute a local team expert in regulations and compliance, carefully monitor the variations of regulations in the various EU countries and ensure that all products comply with European standards (EC, EU Annex 1) already in the research and development phase. In addition, keep contact with local conformity authorities through a joint venture in Italy to obtain the latest updates regarding regulations. In this regard, Tofflon has a high autonomous production capacity, while Itema boasts a consolidated experience in local management, increasing production efficiency and product quality.
How do you evaluate Italy as a destination for investments, in terms of industrial ecosystem, quality of the workforce and regulatory environment? What opportunities and challenges do you see for Chinese companies?
Italy has a well consolidated industrial system in the mechanical production and automation sector, with particular reference to pharmaceutical, food and packaging equipment. This context is characterized by a long tradition and a high technological level. For Tofflon, the collaboration with local companies such as Itema, which boast a centenary manufacturing story, represents a strategic opportunity. This synergy not only facilitates the rapid creation of a joint venture platform, but also allows you to optimize the resources of the local supply chain and engineering skills, thus accelerating the process of localization of the products.
Opportunities: immerse yourself in the ecosystem of high -end manufacture in Europe, with the aim of increasing the international competitiveness of the brand and products. A consolidated supply chain of local automation components and technologies ensures efficiency in the production of equipment.
Quality of the workforce: the Italian workforce stands out for its high competence, attention to experience and stability.
Technical professionals and Italian engineers boast high -level professional skills, in particular in the sectors of assembly, testing and mechanical design, supported by significant experience. This high degree of professionalization and the stability of the workforce represent an added value for companies, facilitating the creation of long -term operational teams.
Challenges to face: however, the introduction of new talents and the integration of local employees require careful management of time and adequate cultural adaptation. In addition, work legislation has a certain complexity, and work costs, together with flexibility in hiring, need strategic and rational planning.
What synergies has found between the Chinese and Italian approach in areas such as industrial quality, innovation and manufacturing know-how?
The two countries, China and Italy, have distinctive characteristics in the manufacturing sector, creating a solid base of cooperation based on complementarity in industrial quality, technological innovation and artisan culture.
China stands out for its systemic ability and engineering efficiency, with companies capable of managing the entire production process – from design to supply, to production and delivery – in competitive times.
On the other hand, Made in Italy is synonymous with artisan skill and attention to detail. Italian engineers devote themselves to guaranteeing excellent mechanical precision, a well -kept aesthetic of equipment and an optimized experience for the user, pursuing a rigorous standard of quality in design and assembly. This synergy between the two nations represents a strategic opportunity for the mutual strengthening of the respective manufacturing skills.
Cooperation between Italy and China has facilitated the integration of product development models. Tofflon focuses on modularity, standardization and replicability in projects, while Italian engineers favor customization for the end user. During the integration process, we have progressively developed a collaboration mechanism that combines “standard modules + local customization”. This approach allows our products to guarantee both a large -scale delivery capacity and an adequate response to the specific needs of European customers.
In addition, we worked to integrate the cultures of quality, establishing a common language and greater operational cohesion.
Through a strategic synergy with the Italian local team, the parties involved have started a constructive and coordinated dialogue regarding production processes, quality management, risk management, documentary system and validation logical. This approach has made it possible to gradually establish a culture of shared quality and uniform knowledge of the standards.
Cooperation between Italy and China goes beyond mere integration of resources; It represents a profound dialogue and a collaborative evolution between two distinct manufacturing cultures. As regards industrial quality, we stimulate each other towards rigorousness, influencing us in compliance with the processes and collaborating to generate innovative ideas. Tofflon-Itma is configured as an emblematic example of this “East-West Fusion” and a bilateral awareness.
What role will Tofflon Itema play in strengthening the production capacity of the biopharmaceutical sector in Europe and contributing to local economic development?
The European biopharmaceutical market is expected to grow at a compound annual growth rate (CAGR) between 7% and 9% in the next five years. This expansion is mainly fueled by the increase in innovative therapies for the treatment of cancer, cardiovascular diseases and infectious diseases. Consequently, there is a significant increase in the demand for sterilization equipment, insulators, freeze -drivers and other related technologies.
Tofflon-Itma can play a significant role in local economic development through the following four key points:
- Stimulus to employment and formation of talents: the implementation of the project locally will generate new job opportunities directly in various sectors, including technology, mechanical assembly and engineering services. Tofflon also intends to collaborate with technical institutes and local research centers to create jobs and train professionals specialized in the production and validation of pharmaceutical equipment.
- Promotion of the location of the supply chain: through the establishment of production and assembly systems in Italy, Tofflon-Itma undertakes to privilege the purchase of local components and services. This approach will not only improve the stability and cooperation of the supply chain both upstream and downstream in Europe, but will also guarantee customers superior services, contributing to a significant reduction in logistical costs.
- Increasing regional competitiveness: Tofflon’s technological advantage, combined with local resources and the production experience of itema, allows this strategic alliance to provide highly competitive solutions globally for the European market. This approach helps customers to achieve significant benefits in terms of quality, delivery times and cost-effectiveness ratio.
- Promotion of sustainable development: Tofflon is engaged in the adoption of advanced technologies and ecological solutions to reduce the environmental impact of its activities. The alliance with Itema will encourage the integration of low -energy production practices and with reduced emissions, contributing to the development of a sustainable production chain in the European biopharmaceutical sector.
Beyond technology and products, what do you think this collaboration in terms of vision or value represents for the future of industrial cooperation between Italy and China?
The collaboration between Tofflon and Itema goes beyond the simple supply agreement or technological partnership. It represents a model of deep integration of cultures, ideas and values that traces a new route in the Sino-Italian industrial cooperation.
This alliance highlights a fundamental transformation: from a mainly commercial and cost -based cooperation, it evolves towards a strategic alliance oriented towards value, quality and shared innovation. The synergy that is created is aimed at developing lasting ecosystems, capable of attracting talents and resources, promoting bilateral economic growth.
This model of cooperation represents a virtuous example for future initiatives, indicating the direction towards which international industrial collaborations should move: no simpler transactions but long -term partnerships, based on trust, innovation and sustainability.
Finally, this collaboration testifies to the growing maturity of the relations between Italy and China in the industrial sector, reflecting the desire to build solid bridges that favor a balanced and shared development in the context of technological globalization.
Based on your direct experience, what advice would you feel like giving other Chinese companies that are evaluating an investment in Italy?
Firstly, we advise Chinese companies to carry out a detailed and strategic preliminary analysis to identify the most suitable form of investment (joint venture, acquisition or settlement from scratch), considering the peculiarities of the Italian and European market.
It is essential to constitute a dedicated team to follow all the initial phases, from the two diligence to the negotiation and start of the project, to guarantee effective and timely management.
For Chinese SMEs, it is suggested to start with commercial front-end activities and after-sales services in Italy to test the market and build a solid reputation before expanding with productive investments.
We recommend a rigorous management of Italian and European regulatory compliance, which implies compliance with environmental regulations, work laws, security and data protection, through the adoption of certified management systems and regular audits.
Finally, success in the Italian market requires targeted adaptation: product, production process and marketing and sale strategies. An accurate selection, training and integration of local staff is also crucial, which represents the key to ensuring efficient operation and long -term stability.
Curated by: Avv. Carlo D’Andrea, national vice president of the European Union Chamber of Commerce in China, Managing Partner of D’Andrea & Partners Legal Counsel
