Diapositiva 1

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• Mr Cosimo Franco
• President FEDERCHIMICA Fine Chemicals Group
• Mr Vittorio Maglia
• Director of the Economic Analysis and
  Internationalisation Department of FEDERCHIMICA
• Hotel Intercontinental The Grand
• Mumbai, 10 November 2006

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FEDERCHIMICA, the Italian Federation of the
Chemical Industry

• The Italian chemical industry is represented by
  FEDERCHIMICA.
• FEDERCHIMICA is member of CONFINDUSTRIA, the
  Confederation that groups all the Italian
  industrial sectors, and of Cefic, the European
  Chemical Industry Council.
• 17 Sector Associations operate in FEDERCHIMICA,
  representing 47 Product Groups and
  more than 1,300 companies.

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The 17 Sector Associations and 47 Product
Groupsrepresented by FEDERCHIMICA

• AGROFARMA
• Plant protection products
• AISA
• Animal health-care products
• AISPEC
• Fine chemicals and specialties cosmetic
  ingredients bitumen sheets flavours and
  fragrances food additives and processing aids
  lubricants photosensitive products starches and
  organic acids
• ASCHIMFARMA
• Pharmaceutical raw materials and intermediates
• ASSOBASE
• Inorganic/organic chemicals
• ASSOBIOTEC
• Products and processes of biotechnological origin
• ASSOCASA
• Cleaning and maintenance products detergents
• hygiene products laundry soaps
• ASSOFERTILIZZANTI
• Mineral fertilizers organic and organo-mineral
• fertilizers soil conditioners specialty
  fertilizers

ASSOFIBRE Cellulosic synthetic
fibres ASSOGASLIQUIDI Liquified petroleum
gases ASSOGASTECNICI Medical gases technical and
special gases PLASTICSEUROPE ITALIA Advanced
materials compounds for plastic, thermoplastic
resins and system ANIFA O.T.C. products (self
medication products) AVISA Adhesives and
sealants paints and varnishes printing and
silk-screen inks CERAMICOLOR Ceramic glaze,
pigments inorganic and metal oxides FEDERCERAMICA
Table and ornamental ware sanitaryware
technical ceramics clay pipes
abrasives UNIPRO Cosmetic products
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Chemical industry in Italy

• More than 2 thousand companies are active in the
  sector employing about 198 thousand people.

• Italy represents a large market for chemicals
  accounting for more than 87 billion euros.

• Thanks to Italian positioning
  in the centre of Mediterranean,
  many chemical multinational
  companies have placed here their strategic basis
  to manage operations in the South of Europe.

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A partnership with the industrial districts

• The most famous feature of Italian economic
  system is probably represented by industrial
  districts.

• They are about 200 in Italy and most of them
  show very strict connections with
  chemicals.

• Enterprises from industrial districts
  are known around
  the world for their high quality and
  innovative products.

• To do that they often work in partnership
  with Italian chemical companies,
  which are
  able to develop
  sophisticated intermediate products
  responding to any specific
  requirement.

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A partnership with the industrial districts
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Main players of the Italian chemical industry

• Chemicals in Italy present a well balanced mix of
  SMEs (small and medium sized enterprises),
  Italian large companies and foreign
  multinationals.

• SMEs play a particular role
  in the whole Italian manufacturing
  industry, reflecting a widespread
  entrepreneurship which is unique in the world.

• Foreign chemical companies in Italy are more than
  200 and employ more than 50 thousand workers. In
  Italy many of them have plants and make research
  and development.

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The geography of Italian chemical industry
Lombardia is the second European chemical region

• The Italian chemical industry
  is concentrated in the
  North of the country,
  next to downstream European markets and
  local customer companies.

• Northern Italy accounts for about 70 of chemical
  employment.

• Lombardia, representing alone 40 of it,
  has a real vocation for chemicals
  it is the second chemical region in
  Europe in terms of employees and
  the first for number of
  companies.

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An increasing international attitude

• Italian chemical companies offer their
  international customers the same solutions
  enforcing partnership with domestic clients
  innovation,
  customization, flexibility, just-in-time and
  fulfillment to requirements.

• Exports to turnover have grown from 15 to 39 in
  15 years, the best performance
  among European countries.

• Not only large firms, but also SMEs are strongly
  oriented to international markets.

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An increasing international attitude

• EU countries are Italian main trade partners but
  Asia and East of Europe are gaining importance.

• Export performance has been positive especially
  in downstream chemicals.

• Italy is leader in the production of active
  pharmaceuticals ingredients for generics and
  enjoys significant trade surpluses in detergents
  and cosmetics and paints, varnishes and
  adhesives.

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Innovation in the Italian chemical industry

• For Italian chemical enterprises
  RD
  represents a key activity
  in order to be considered
  
  valuable partners from their customers.

• The possibility for downstream sectors
  to offer innovative
  products
  often stems from the developing
  of new chemical
  intermediates
  with specific properties.

• Chemical companies constantly innovate also to
  improve processes as well as environmental
  standards.

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Innovation in the Italian chemical industry

• Not only major companies,
  but also smaller ones
  are strongly engaged in innovation.

• In the last years more than 70 of chemical firms
  has been strengthening RD
  as it is considered critical
  for
  facing increasing international competitiveness.

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Advanced industrial relations and competitiveness

• High quality employees, competitive labor costs
  and
  industrial relations with strong innovative
  content and collaborative bargaining attitude
  with Trade Unions this is probably the best
  asset of the Italian chemical industry.

• With the objective of pursuing the necessary
  flexibility of labor in the continuous respect
  of the importance of human
  resources, Italian chemical companies may benefit
  of a wide flexibility.

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What foreign companies managers appreciate of
chemicals in Italy
The quality of human resources

• The quality of human resources
  is the most positive aspect underlined
  about Italian activities by foreign
  companies.

• Factors for which Italians are better considered
  than the human resources of other countries are
• - initiative
• - creativity (as a real professional capacity)
• - capacity to work under pressure
  and in unstable situations
• - capacity to defeat communication barriers
• - availability.

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What foreign companies managers appreciate of
chemicals in Italy
Size and quality of the market

• Most of the chemical products
  are a productive input of industrial
  sectors where Italy enjoys an important position
  (think, just to make an example,
  of textile industry).

• For consumer goods there is a big market
  represented by the fifth worldwide economy.

• Products developed for the Italian market
  often find space in all advanced markets.

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What foreign companies managers appreciate of
chemicals in Italy
Innovation and research

• For many foreign companies
  innovation and research is an area
  where it is possible to develop efficiently
  an activity in Italy.

• At the basis of this opinion
  there is a good assessment
  of the quality of human
  resources, of the
  availability of a good level of graduates, of
  high company loyalty, of a great creativity and
  limited costs with respect to
  other European countries.

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What foreign companies managers appreciate of
chemicals in Italy
SMEs as clients and partners

• Italian SMEs system is considered
  as one of the main advantages
  of an investment in the
  Italian chemical industry.

• The availability of hundreds of dynamic customers
  means not only exploiting a big market
  but always finding a company
  willing to risk and develop a
  new product or application.

• SMEs may be important partners
  both as clients and providers
  of plants and
  equipment.

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