INVEST IN ITALY:
Right Time, Right PlaceItalyPackaging Industry
March, 20182

KEY FACTS

3rd largest economy inthe Eurozone

Italy has among thelowest labour costs in
Western Europe

Italy is open to GreenTechnology

Italy has alarge & skilledworkforce

Competitive location
for investment.
Cheaper than USA andmany Western
European competitors

3

Labour cost (manufacturing hourly compensation costs; US Dollar)
48,00

1st40,00

among the European
leading economies

32,00
24,00
16,00
8,00
0,00

Source: Conference Board, International Labor Comparisons (2017 – data 2016)

4

ITALY IS BACKEconomic Outlook
GDP growth of 1.5% in2017 is forecast for
1.4% for 2018

Investors’ confidence
index (2018) grows: +3
than 2017.

Unemployment rate
fell by 0,5% between
2016/2017

Export increased by
7.4% between 2016/2017

Italy ranks 10th in 2018
for FDI attractiveness,+8 than in 2015

Italy is the 9th
economy in the world,based on strong
export5ITALY IS BACKCorporate Taxation ReformIn the last years the Italian Parliament approved new legislation, including tax incentives, specifically aimed
at making Italy an attractive location for investment in manufacturing and R&D.
Among those specific tax incentives, the following are particularly relevant:•Patent box– a 5 year-elective regime will grant a partial tax exemption on income derived from qualifying intangible assets(patents, know-how, trademarks) as long as the Italian company performs R&D activities•

New R&D tax credit– enhanced for 2015-2019, with the elimination of any access limitation based on turnover and a doubled cap
amount (from 2.5M to 5M euro per year)•Tax credits/incentives for the purchase of machinery & industrial equipment•Full deductibility from the IRAP (regional tax) of labour cost for employees hired on a permanent basis

6

ITALY IS BACKCorporate Taxation Reform
Other tax incentives are:
The “Destination Italy” Decree•

created a specific and dedicated desk of the Revenue Agency (Agenzia delle Entrate) in order tohelp and provide information to foreign investors•

enhanced the tax ruling procedures, by extending the validity period of the preventive rulings
from 3 to 5 years and including also the existence of Italian permanent establishments of foreigncompanies7Packaging Industry8WHAT’S THE GLOBAL TREND
When the container of products becomes the real product
Health safety: Materials
It's important for packaging to focus on unique benefits, such as naturalingredients and formulations, offering transparency on the label.
Innovative methods of displaying and preserving fresh food will also be
key for short and long term success.

Environment: Recycle
Consumers are becoming increasingly more aware of global
environmental issues and are changing their buying habits accordingly.
These days, it's 'cool to care', and consumers are actively seeking out
semiotic signs on packaging that manufacturers have a green conscience

9PACKAGING IN ITALY
Packaging is the science, art and technology of enclosing or protecting
products for distribution, storage, sale, and use. Packaging also refers to theprocess of designing, evaluating, and producing packages.
Packaging can be described as a coordinated system ofpreparing goods for transport, warehousing, logistics,

sale, and end use. Packaging contains, protects, preserves, transports, informs,and sells. In Italy it is fully integrated into industrial complex processes, justthink Italy ranks first along with Germany in packaging machinery sector.

Source: Wikipedia from ‘’Fundamentals of Packaging Technology’’, Institute of packaging professionals

10ITALIAN MARKET
Italy is the European second-biggest manufacturing power
and one of the biggest European packaging producers
Italian packaging, 2017+2,3% than 2016
Total turnover 32,4 blns €Plastic and Paper packagingo Beverage packaging

o Food packaging

Some of the players:o Industrial

Metal packagingo Tin plateo Easy-open ends
o closures

And much more…

Source: https://www.infopackaging.it/packaging-bilancio2017-imballaggi/; http://distribuzionemoderna.info/speciali/packaging-il-futuro-e-green-e-tailor-made11

ITALIAN MARKETIn the flexible packaging segment Italy has been attracting several
FDI for some considerable time
Deals in Italy

None

In this segment
European market
is the mostdinamic andattractive(2010-2016 data)

Source: http://www.italiaoggi.it/upload/doc/TMFI/201605012220084400/EY-Settore_Packaging.pdf; http://www.flexpack-europe.org/fpe/home.html

12EUROPEAN PACKAGING
European outlook on packaging - % (2016)
Packaging: Global Market by Regions

StrongPoints

Glass

7,40%

7,10%

Almost a thirdof the global
market

28% USA30%
EuropeMaterial shares –Global packaging
MarketAluminium
9,10%

Metals44,40%

Plastic

Other 8%
7%

Central America

27% Asia

32,00%Paper

The global packaging market is estimated to total US$ 424 billions with an annual
growth rate of some 3.5 per cent. Europe accounts for US$ 127 billions (30%)

Source: http://www.pdachain.com/2016/11/30/packaging-statistics-that-might-surprise-you/; GADV

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RAW MATERIALS (WASTE) IMPORT-EXPORT
Italian Import/Export volume in tonnes (2014)

Strenghts

PRODUCT GROUPIMPORTEXPORT

Paper waste
Glass waste
Plastic waste
Wood waste
Non-ferrous metal waste
Ferrous metals
Electrical/electronic waste
Batteries and accumulators
End-of-life vehicles
End-of-life tyres

18.54889.235121.169
652.716870.692
3.648.869
20.339
24
1.361
181

372.9679.084
524.990
32.204
189.617193.109
96.91215.06520.872108.420

Undefined

442.0202.233.022

5.865.154

3.796.262

Total

Source: ECOCERVED on MUD 2015 data (http://www.felicitapubblica.it/wp-content/uploads/2016/01/3-capitolo-import-export-di-rifiuti.pdf)

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LEADERSHIP ON MACHINERY
Packaging Machinery

Machinery turnover - 2016

Machinery Export - 201619%
Packaging

21%
Packagingo Around a fifth of all machinery sectoro Export/Total turnover: 80%
81%+6,6% than 201579%

+5,8% than 2015

601 firms
19 big players for 55% of turnover
300 small for 4% turnoverOnmachinery
Bologna andmuch more…

Source: ‘’Sintesi dei risultati della 5° indagine statistica nazionale sul settore’’, UCIMA giugno 2017; Centro Studi UCIMA/ISTAT; Il Sole 24 ore

15ITALY’S PACKAGING FDI, NOW
40 foreign-invested firms operating in the packaging
subsidiary and mostly wholly-owned from 16 countries capitals• 35 wholly-owned (88%)

25% 1st Metal
2nd Plastics

15% 1st Metal
2nd Plastics

8% 1st Plastics
2nd Glass3rd Glass• Other 3 controlled/equal

33% Glass

33% Glass• 2 minority stake

50% Plastics

50% Plastics

Source: ITA elaboration on Reprint data, 12/2017

33% Plastics

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SMART PACKAGING• TRACEABILITY SYSTEMS• ACTIVE PACKAGING
Smart packaging is a major factor in optimising thein-store handling, logistics and sales processes. This
involves the use of packaging with special
identification codes for the purposes of traceability
and identification along the entire process chain
through to end-of-life recycling, bringing advantages
for both business and the environment.

The retail sector isalready making
significant
investments,
especially in supply
chain monitoring, inwarehousemanagement and in
asset tracking.
An identification tool on packaging allows
o to speed up processes,o reduce errors,o resolve product shelf life issues,o evaluate the impact of out of stock on revenues and thelack of product both in-store and in the warehouse.

Source: http://www.marca.bolognafiere.it/en//marca-tech-2018/6686.html; Specialist Conference: “Smart packaging, added value for retail”, 17 January 201817

NATIONAL TECH CLUSTERS
Ministry of Education, University and Research••••••••AEROSPACE TECHNOLOGYAGRIFOOD
GREEN CHEMISTRYINTELLIGENT FACTORIES
CLUSTER TRASPORTI
LIFE SCIENCE
SMART LIVING TECHNOLOGIESSMART COMMUNITIES TECH

ROME

http://www.ctna.it/ROME

http://www.clusteragrifood.it/en/

MILAN

http://www.clusterspring.it/home/

BOLOGNA

http://www.fabbricaintelligente.it/en/

ROME

http://www.clustertrasporti.it/

MILAN

http://www.clusteralisei.it/en/

ANCONA

http://www.smartlivingtech.it/en

TURIN

http://www.smartcommunitiestech.it/en/

What’s coming next…
• HERITAGE TECH
• DESIGN• MADE IN ITALY• SEA ECONOMICS• ENERGY

Source: http://www.miur.gov.it/cluster; http://www.distretti-tecnologici.it/centro_miur.htm

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ITALY’S GOT TALENT
Abundant and Skilled Workforce

Mainstay

Italy has some of the world’s best engineering
universities. Indeed, engineering is the 2nd highest
course for enrolment in the country – 225,619
currently studying an engineering discipline.1
The Technological Departments of the ItalianUniversities annually produce a pool of graduates withthe knowledge and industry experience to immediately
enter the work force.

The engineering sector currently
employs around 417,000 peoplein Italy.3

Universita degli Studi di Napoli

FEDERICO II

And much more.
Tertiary-educated 25-64 years old (2016) – Fields of study

Source: 1Ministry of Education 2AlmaLaurea 3La Repubblica; OECD ILibrary (http://www.oecd-ilibrary.org/education/education-at-a-glance-2017)19

ABOUT REGULATIONSDirective
2008/98/EC

Producer responsibility: Packaging and packaging wasteo Strengthen the re-use and the prevention, recycling and other recovery of wasteo Any natural or legal person who professionally develops, manufactures, processes,treats, sells or imports products has extended producer responsibility
These measures may include the obligation to provide publicly available information on
re-usable and recyclable products.

Bisphenol A: a long way towards health safetyo Tin cans and food containerso Banned from infant feeding bottles
since 2011
From February 2018: stricter and heavier specific restrictions on food containers
with bisphenol A

Source: https://www.ecma.org/

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…RIGHT DEVELOPMENT
Companies Associations:
http://www.ucima.it/uc-en/
http://www.istitutoimballaggio.it/
http://www.assocarta.it/en/
http://www.assografici.com
http://www.gifco.org/
http://www.cial.it/english-posts/

http://www.conai.org/en/
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WHERE
National
ItalianAward

Packaging
Next trade shows and events:

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Italian Trade Agency
Via Liszt, 2100144 Roma
fdi@ice.it
www.ice.it

Thank you foryour attention