Target Information

SKYTECH, a prominent player in the French Greentech sector, specializes in the production of premium recycled resins for industrial uses and plastic processing. On November 2, 2022, the company announced the acquisition of an industrial site in Pozzaglio ed Uniti, Lombardy, aimed at establishing a new production facility in Italy. Located near Cremona, the site spans 13 hectares and includes 29,000 square meters of buildings, which are scheduled for complete modernization to accommodate various lines for premium recycled plastics production.

The planned renovations will commence once SKYTECH secures the necessary AIA authorization from Italian authorities, which is akin to the French ICPE classification for environmental protection installations. With an investment of approximately 20 million euros, supported by its shareholder Xerys Invest, SKYTECH aims to modernize the facility and create over 70 local jobs within the next two years. The company anticipates beginning production at this site by the end of 2023, with a production capacity exceeding 50,000 tons by 2025.

Industry Overview in Italy

The Italian plastic industry is experiencing a significant transformation, driven by increasing demands for sustainability and circular economy practices. Italy boasts a robust industrial framework, characterized by a diverse array of medium-sized enterprises and a dynamic automotive sector, which presents substantial opportunities for companies like SKYTECH. The country has made strides in establishing organized collection systems for electronic waste and end-of-life vehicles, essential for sourcing high-quality recycled materials.

Furthermore, the Italian government and private sectors are investing in Greentech initiatives, creating an increasingly favorable environment for businesses that focus on sustainable practices. This investment not only aligns with global sustainability goals but also meets the rising consumer preferences for eco-friendly products.

Given the growing awareness surrounding environmental issues, businesses in Italy are compelled to innovate and adapt their operations. The presence of a strong technical workforce further enhances Italy's appeal to investors in the circular economy. Local demand for sustainable materials is set to rise, making it essential for companies to engage in eco-conception and to innovate their production processes.

Rationale Behind the Deal

SKYTECH's acquisition of the Pozzaglio ed Uniti site aligns with its strategy to expand production capacity and enhance its footprint in the European market. Italy represents a high-potential market for SKYTECH, allowing the company to capitalize on organized collection systems for recycling as well as strong demand from local industries. This strategic move not only supports SKYTECH's growth ambitions but also fosters the development of a sustainable industry.

The investment is further justified by the favorable response from the local municipality, which underscores the community's support for new industrial activities. As such, the development will contribute to regional economic growth and sustainability efforts.

Investor Information

Xerys Invest is a French private equity firm that primarily invests in sectors experiencing significant transformations, including healthcare, renewable energy, and digital technologies. The firm focuses on supporting companies that address economic, environmental, and societal challenges while possessing ambitious growth plans for international expansion.

Xerys Invest distinguishes itself through its operational and strategic support for portfolio companies, providing tailored investment opportunities to suit investors' needs. With a dedicated team and a strategic committee composed of industry specialists, Xerys Invest brings substantial expertise and insight to the companies it invests in, enabling them to navigate complex market dynamics successfully.

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The acquisition of the Pozzaglio ed Uniti site by SKYTECH is a strategically sound investment, reflecting the growing importance of sustainability in the industrial sector. By expanding its operations into Italy, SKYTECH positions itself to benefit from the country's robust market for recycled materials and its commitment to circular economy practices. The site’s modernization is likely to enhance production efficiency and meet increasing demand for eco-friendly products.

Moreover, the anticipated creation of local jobs and the positive reception from local authorities are strong indicators of a successful integration into the community, which can bolster SKYTECH's reputation and market presence. The investment aligns closely with Xerys Invest's approach of backing companies that are not only economically viable but also socially responsible.

Long-term, the shift towards sustainable practices in Italy's industrial landscape suggests that SKYTECH will likely experience substantial growth opportunities, particularly as consumer demand shifts towards environmentally friendly products. Therefore, this acquisition can be perceived as a forward-thinking move that acknowledges the evolving dynamics of the industry.

In summary, this investment by SKYTECH, supported by Xerys Invest, reflects a strategic initiative to enhance production capabilities while addressing sustainability challenges, indicating it has the potential to yield significant returns in the future.

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