History and tradition of the Marzotto Group are long and based on intelligent work and entrepreneurial spirit over 160 years. Five generations of the same family have guided the company, with high ethical standards, through the ups and downs of political, economical and industrial history.


Company history

Marzotto was founded in 1836. The group now has a leading worldwide role in the clothing industry and textile sector. Turnover in 2002 was 1,788 million Euro, approximately 80% attained outside Italy. With 12,027 employees, customers in over 100 countries, production locations in Italy, Tunisia, the Czech Republic, Lithuania, Germany, Switzerland, Turkey and the USA, the Group is the worldwide leader in men‘s ready-to-wear clothes. The Group has also extended its already important presence into the sportswear and ladieswear sectors.

Marzotto plays an important role in both woolen yarn production (15 million running meters annually from Marzotto, Guabello and Marlane and 6 million running meters cotton and linen fabric for sportswear from Tessuti di Sondrio) and linen yarn production (Linificio and Canapificio Nazionale).

In the clothing sector, the Group designs ladies’ and men’s collections, sportswear and leisure wear. Labels include the three Hugo Boss labels purchased in 1991 (Boss, Hugo Boss, Baldessarini), those purchased in 2002 from the Valentino Group (Valentino, Valentino Roma, Valentino Garavani, Valentino R.E.D.), own labels (UomoLebole, UL Trendy, Principe, Borgofiori, Marzotto Lab.). Licenses for Marlboro Classics (extended to 2019), Gianfranco Ferré Studio, GFF Gianfranco Ferré, Gianfranco Ferré Forma, M. Missoni, round off the wide range of worldwide renowned brands.

The year 2002 had high strategic importance for Group growth with the purchase of Valentino, concentration on the core business and reorganization in the textile and fashion sector.

Strategy

Company strategy is based on rationalizing and developing the three main labels (Hugo Boss, Valentino, Marlboro Classics), extending labels in the ladieswear sector (future integration of Valentino in the current Group labels strengthens presence in top range textiles in ladies’ wear as well), retail trade development and further penetration of growing markets (especially China and Russia). The Valentino extension reflects extending the range especially in young fashion and sportswear as well as license development. In the textile sector, the primary objective is production rationalization to increase product value with regard to quality and cost efficiency. The target is to attain a positive balance in 2003 already to finance development of the fashion sector in the Valentino Group.

Marzotto plans using 90% of all investments over the next three years 2003 - 2005 in the fashion sector with the aim to bring Valentino to the breakeven point in 2004 and Boss Woman in the current year.
In accordance with the consolidations plan, the Group has withdrawn from the real estate business, sold its own hydroelectric power plants and included a capital gain of 43.7 million Euro in the consolidated calculations for 2002.

Textile sector

With regard to yarns and fabrics, Marzotto produces and markets either directly or via franchising knitting yarns made of wool with the Lanerossi label and linen yarns with the Linificio and Canapificio Nazionale labels. Apart from that, Marzotto produces fabrics from wool and blended fabrics from wool and cotton with Guabello, Marzotto, Tessuti di Sondrio, Lanerossi and Marlane labels as well as blankets marketed with Marzotto Wool Home Collection, Lanerossi Arredo and Liteksas labels.

Innovations

Marzotto has always laid particular emphasis on comfortable fabrics. This involves a large innovative effort in developing yarns, fabrics and special finishing methods, and led to a fabric called “NATURAL STRETCH“, now standard in Marzotto fabric production with over 40% of the overall production.

“PLASMATO”, the latest Marzotto fabric innovation, is created from a special selection of raw materials, on through yarn structure and on up to special dyeing and finishing methods. Varying properties such as shiny/matt, washed, coated are always combined with a silky character. Used for poplin weave as well as other weaves such as Ottoman, gabardine, serge and cady, this method provides excellent properties such as perfect final quality, easy care, 3-D surface, soft feel, wear resistance and natural stretch effect.


Weaving mills

Between 1990 and 1998, Marzotto installed 124 DORNIER rapier weaving machines in the Valdagno (VI) and Biella factories to manufacture fine, fashionable wool and Elastan fabrics. 24 machines of the same type were installed in Sondrio to manufacture cotton fabrics.

Marzotto started to manufacture wool fabrics and wool-Elastan blended fabrics in 2002 using 20 DORNIER air-jet weaving machines, type AS. The experiment was successful: The air-jet weaving machines deliver highest productivity with excellent fabric quality at speeds between 700 and 750 ppm. Using the DORNIER system family of air-jet and rapier weaving machines supports optimum economic manufacturing of the wide range of different styles.

This secures the Marzotto company an important lead in the extremely competitive world market for high-class ladies’ and men’s fashion.