LOS ANGELES — November 30, 2017 — Alcantara, the manufacturer of Italian-made luxury material, has seen its annual sales triple and operating profits increase more than five-fold since the recession.
The company will have a major presence at this year’s Los Angeles Auto Show, as well as at auto shows in Detroit, Chicago and New York over the next six months. The U.S. market currently accounts for about 10 percent of Alcantara’s global sales.
The company’s net sales have risen from 64.3 million euros in 2009 to more than 187 million euros in 2016. Operating profits have jumped from 7.9 million euros to 45.1 million euros during the same period. The company’s Chairman and CEO Andrea Boragno notes that Alcantara’s automotive business has experienced especially strong growth in China and the United States as a result of an increase in brand awareness among automakers and consumers.
Major automakers, such as Acura, Audi, BMW, Dodge, Jaguar, Lamborghini, Lincoln, Maserati, Nissan and Porsche are expected to have cars equipped with Alcantara at this year’s Los Angeles Auto Show.
“As you can see from our strong business results, our emotive, high-tech artisan approach to luxury resonates well with automakers and consumers alike,” says Boragno. “Our relationship with the design community in the automotive industry, as well as throughout the fashion, home furnishings, consumer electronics and marine industries, has helped us significantly increase sales and brand awareness over the last decade.”
Partnerships Equal Growth
Alcantara’s CEO adds that the company sees an unrivaled potential for growth through partnerships with the world’s leading brands.
Premium fashion brands such as Adidas and Swarovski, for example, have launched exclusive collections in collaboration with Alcantara. The material’s versatility extends to some of the world’s most prestigious furnishing brands, including Torre, Cappellini and Ligne Roset, which have featured Alcantara on their product lines.
In the consumer electronics market, Microsoft utilizes Alcantara on its Surface Pro laptops and Sennheiser has incorporated Alcantara in the design of its on-ear headphones.
Investment to Double Production Capacity by 2022
To meet growing demand for its material, the company plans to significantly increase its production capacity. Boragno reports that a five-year investment program totalling 300 million euros is expected to double Alcantara’s overall production capacity.
The five-year expansion plan calls for annual sales to reach 300 million euros, compared to 187 million euros last year. Brand value also is expected to triple from Interbrand’s 2015 value estimate of 100 million euros to 300 million euros over the same period. The number of employees is expected to grow from 598 to around 800, as well.
Sustainability: A Key Value of the Alcantara Brand
Alcantara’s CEO believes the company’s strong commitment to sustainability is a key part of Alcantara’s competitive strategy. A commitment to sustainability is consistent with the long-term goal of increasing the company’s financial value.
“Alcantara is the first Italian industrial company and among the very first companies in the world to have achieved the status of Carbon Neutrality,” Boragno noted. “Since 2009, we have published our own Sustainability Report, which provides transparency for everything we do. We also have worked very hard to build a supply chain that focuses on responsible procurement.”
Posted November 30, 2017
Source: Alcantara S.p.A.