Radici Group, a family-owned firm, is a diversified group of manufacturing companies with activities in five separate divisions—fibres, chemicals, textiles, plastics and auxiliary products. There is a substantial amount of integration, however, between the five divisions. The group is one of only a few firms which are firmly committed to investing in the production of fibres and textiles in Europe and the USA. The key to sustaining this strategy, it believes, is to maintain flexible operations and to move away from commodities. Radici is well aware that there are many challenges facing all the industries represented by its five divisions, particularly in Europe. Such challenges include rising energy and labour costs, underutilisation of existing European production capacities and general overhead costs. However, these challenges are being met head-on through flexibility, cost effectiveness and a high level of vertical integration. By the end of 2005 Radici intends to purchase a significant stake in Nylstar—its major European competitor in the European polyamide (nylon) fibre industry. Assuming the purchase goes ahead, Radici will become the biggest player in polyamide fibres and filament yarns for the fashion industry.
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