Italy designers Lagostina, Alessi, Bialetti tough out recession

“Sales in the U.S. and in Japan have suffered, while they have remained stable in Europe,” Alessi told Reuters in an interview at the firm's offices in Crusinallo, near Omegna.

Exports account for 60 percent of Alessi's annual revenues and the company employs around 200 international designers and 500 employees crafting 60 new projects a year.

“Even top companies like Lagostina are facing the consequences of outsourcing production,” said Costi at the chamber of commerce.

The stainless-steel cookware maker, founded by Carlo Lagostina and his son Emilio in 1901 and now owned by the French small appliances group SEB, is in talks with unions over possible redundancies among the 200 employees.

It has ruled out plant closures, saying “Made in Italy” branding retains strategic value: exports account for more than a third of its income.

“The group is firmly convinced about keeping R&D and high-end production in Omegna,” SEB said in a statement.

Coffee-machine maker Bialetti Industrie — founded in 1919 by Alberto Alessi's maternal grandfather, Alfonso Bialetti, and majority-owned by Chairman and Chief Executive Francesco Ranzoni — reached an agreement in April with more than 90 percent of its creditors to keep credit lines open for another year.

Last June they approved a three-year business plan to boost revenues and reduce debts. The company's stock, listed in Milan, trades at around 0.5100 euros, above a low of 0.164 euros reached in March. It launched in July 2007 at 2.50 euros.

People say it helps that family ties are so deep-rooted in this little industrial district, where 79 percent of the 5,000 craftsmanship firms are individually run.

When Alberto Alessi's father Carlo died last August at 93, his wake was held at the factory. Only family members sit on the board. A reproduction of Carlo Alessi's “Bombe” tea and coffee service — still the company's most successful design after more than 50 years — stands outside the factory in Crusinallo.

“We are closely tied to this valley. Our family was born here,” said Alessi.

“If you ask me if our factory will still be in Omegna in 20 years, I can't answer you,” he added. “But I can tell you that we need our skilled workforce to turn our ideas into reality.”

Economists say the outlook for Italy's 1.5 trillion euro economy, which entered recession in spring 2008, is for a timid return to growth in 2010, behind France and Germany.

Manufacturing activity in Italy in September shrank at its slowest rate since May 2008, beating expectations. But analysts warn the rebound may run out of steam at the start of next year.

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