This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Agreement Reached: Green Light Given To The “Re-Organisation Plan” For The Italian Operations Of The Natuzzi Group

Natuzzi S.p.A. (NYSE: NTZ) announced today that an agreement to launch the restructuring plan for the Group’s industrial structure in Italy (hereafter, the “Plan ) was signed yesterday in Rome by the company, local institutions, the Ministry of Labour and Social Policy and the trade union organisations, under the supervision of the Minister of Economic Development and the Minister of Labour.

The agreement enshrines the main goals included in the Plan announced in July 2013, and represents the starting point for a shared roadmap towards the recovery of the Group’s competitiveness in Italy, based on a significant reduction in production costs and increases in productivity, investments and changes to the company’s workforce.

The agreement entails the closure of two of the company’s manufacturing plants in Italy, increasing the efficiency of the production cycle, reviewing the company’s procurement and delivery processes to streamline logistics, and continuing to automate leather-cutting operations, expanding moving production lines and implementing other rationalization initiatives.

The agreement also proposes an investment plan, which calls for investments by the company over the next five years aimed at further developing the Natuzzi Italia brand and safeguarding Italian production. Investments will be made in marketing, communications and the expansion of distribution networks in emerging markets. Investments will also fund innovation in the company’s products, logistics and production processes and staff training.

In terms of the company’s workforce, the agreement envisages that the number of redundant employees subject to future layoffs will be reduced from 1,726 employees to 1,506, reflecting a commitment to the potential, gradual reabsorption of up to 200 manufacturing employees for the production of recliners and up to 20 corporate employees.

Due to the complexity of the measures envisioned by the Plan and in order to better manage workforce reductions, the company and the trade unions obtained a one-year extension, beginning on 16 th October 2013, of the company’s participation in the Cassa Integrazione Guadagni Straordinaria. Under this program, government funds cover the substantial majority of the salaries of redundant workers.

During the period covered by the CIGS program, expiring in October 2014, Natuzzi, the trade unions and other parties to the agreement have agreed on several initiatives to help manage the redundant workers and to promote the re-industrialisation of the upholstered furniture district in Puglia and Basilicata:

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,930.70 -205.02 -1.13%
S&P 500 2,081.07 -19.97 -0.95%
NASDAQ 4,944.8960 -37.9130 -0.76%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs