Esseco Industrial’s Third 2024 Meeting on Lake Orta

The third 2024 meeting of Esseco Industrial was held in the small town of Orta San Giulio, along the shores of Lake Orta, in the province of Novara (Italy).

Eng. Roberto Vagheggi, General Manager of Esseco Industrial and CEO of the chlor-alkali division, led discussions among Managers and Directors from the various companies worldwide.

The main focus was on advancing vertical integration and introducing new products with synergies across the division’s companies. These elements are the cornerstones of the strategic approach initiated in November 2021, which has already yielded outstanding results.

Presentations were centered around updates on M&A operations, energy consumption with a focus on next steps for industrial decarbonization, and the roadmap for IT and financial governance.

Vagheggi introduced a new approach to measuring economic and financial performance, inspired by investor Warren Buffett’s perspective. Buffett criticizes EBITDA as it often fails to reflect a company’s true financial performance, overlooking capital expenditures and changes in working capital. Consequently, Esseco Industrial is enhancing its financial reporting to provide a clearer picture of sales performance that includes all fixed production costs associated with each product. This approach aims to better identify products that do not generate cash flow, allowing financial governance to adapt accordingly.

Leaders of the round tables, held in previous quarterly meetings, presented their “growth projects,” explaining how each initiative can drive the future growth of the companies over the next 3-4 years. Each project is being given a budget to ensure its realization.

Overall, the expertise and awareness within Esseco Industrial companies continue to grow in the pursuit of synergy. Progress is being made with creativity, courage, and innovation, listening closely to customer needs and recognizing that by working together, greater distances can be covered more swiftly. The goal is to foster a team-oriented mindset that maximizes synergies among highly skilled and intelligent individuals.