Elleti Group, known to be a point of reference for Europe and the Mediterranean area with its production plants located between Italy, Tunisia and Romania, and for having acquired the prestigious laundry and finisher Martelli Lavorazioni Tessili in 2016, has closed some of the divisions previously part of Martelli such as Vedelago in Veneto in 2018, and Toscanella near Bologna this year during the lockdown. The company’s production plant based in Tunisia also faced difficulties in recent times with a cutting of 30% of its employees.
A rare vintage jeans piece from M.O.D.E. (Museum of Denim Elleti Group) inaugurated in July 2019
“We had to streamline some of our operations because of the recently changed market conditions,” said Luigi Lovato, Elleti’s founder. “So at present our Italian activities are concentrated in our headquarters in San Bonifacio, near Verona. Because of the recent slowing down of jeans consumption we also had to restructure the activities of our Tunisia premises. Differently, our production center in Romania specialized in producing a wider selection of items including sweatshirts and outer jackets in addition to jeans, is working at full speed. The production volumes I have lost in denim items is now counterbalanced by what I manufacture in other segments,” he added.
Luigi Lovato, CEO and founder, Elleti Group
Despite these difficulties, producing in Romania is about 30% to 40% more expensive than in Tunisia, though always more convenient than producing in Italy, which is about 60% to 70% more expensive than producing in Romania.
“From now on our Italian premises will continue to host R&D and the production of prototypes. By end of October we also host our new Wiser Wash division, a special patented washing system that uses only sustainable treatments and requires a reduced amount of electricity. It uses less water (saving up tp 60% water than with traditional methods), using almost no chemicals along with zero permanganate, zero chlorine and zero pumice stones. We have the exclusive to use this technology all over Europe (excluding Portugal) and Northern Africa.”
Wiser Wash plant at Elleti’s facility in Verona
The group expects to close 2020 registering a turnover of €62 million, counting a 20% loss when compared with 2019. It now employs 2,540 people altogether. The group’s overall yearly production expected by end 2020 is 12 million pieces.