The Ceramic District of Sassuolo-Scandiano, which represents 85-90% of the Italian ceramic production and employs 15 thousand workers, is facing multiple challenges that could impact its future post-summer. The district, already under pressure from Spanish and Turkish competitors, risks losing market share if it continues producing at a loss. “Producing to lose money is senseless,” says Massimo Muratori, general secretary of the ceramist union Femca Cisl Emilia Centrale.
Last year, the sector was affected by the rising cost of raw materials, speculation on energy costs, and a surge in gas prices, which hit companies hard. While orders and shipments are still ongoing, the post-holiday period raises uncertainties, particularly with regards to sourcing raw materials. “The sector is suffering from a series of factors lined up like a perfect storm,” says Muratori. The situation prompted many companies to apply for extraordinary temporary layoffs until the end of the year. However, the cost of gas has since dropped, but firms continue to produce in loss.
Thirty to forty out of 130 companies in the district, mostly small and medium-sized enterprises, are at a higher risk. They don’t have the same resources as the larger companies to withstand the current challenges. As Muratori explains, “To produce tiles, companies need to use ovens that work at over a thousand degrees for 24 hours every day and consume methane gas. But there is currently no alternative to methane in the ceramic sector.”
However, the situation is also inspiring firms to explore new solutions. According to Muratori, interest in the Iris Group’s green hydrogen production project is growing. “If it’s the future for the district, we need to design real hubs to produce green hydrogen that can serve the entire territory, not just a single company.”
The situation in the Ceramic District of Sassuolo-Scandiano highlights the need for the Italian ceramic sector to invest in innovative and sustainable solutions. The district’s challenges provide opportunities to explore and develop alternative production methods, ensuring the longevity of the Italian ceramic industry.