President Selci, demand has not yet recovered. What kind of market do you see?

Since the post-Covid period, the market has been experiencing an unusual phase, marked by unprecedented incentive programs and an extraordinary acceleration in digitalization, followed by multiple geopolitical conflicts, a slowdown in global demand, and increasingly aggressive competition from Chinese manufacturers.

As a machine tool producer, we are far more exposed than other capital goods sectors, such as packaging, to economic cycles and uncertainty about future market prospects. Trends in construction and automotive are especially important for companies like ours that operate in the wood, glass, and stone industries.

Is China still the main challenge?

Yes, it is our primary competitive challenge.

The Chinese domestic market has declined by 30-35%, and local manufacturers are selling at dumping prices, supported by government measures aimed at maintaining employment levels.

At the same time, Chinese products have significantly narrowed the gap with our technologies in terms of functionality and performance. Competing solely on price is not an option for us. The United States has introduced protective measures, while I find it difficult to understand the European Union’s lack of action.

Biesse has discontinued its manufacturing operations in China. Why?

We acquired a manufacturing facility there in 2010, but we were never able to compete on a level playing field. Our production costs were essentially equal to local market selling prices.

The right strategic choice proved to be Bangalore, where we have been present since 2008 and where we now manufacture, engineer, and support the wider Asian market.

How important is India today?

India represents approximately €60-70 million in revenue and around 700 employees.

The country offers an exceptional pool of software engineering talent, although expertise in traditional mechanical manufacturing is less widespread. For this reason, we have vertically integrated the production process, managing everything internally, from sheet metal cutting to painting.

Today, we primarily manufacture entry-level wood-processing machines in India. The next step is to expand into glass and stone technologies and evaluate the development of higher-performance products for Europe. We purchased additional land two years ago to support future expansion.

How can you compete without following Chinese pricing strategies?

By transforming both our products and our services.

After many years during which machines remained largely similar, the industry needs to introduce fundamentally different operating concepts. Our strategic plan focuses the next three to five years on research, talent development, and new technological content.

We are already moving in the right direction through extensive collaboration with leading international universities. Between 2027 and 2030, we aim to bring to market the first generation of machines built on new technological concepts.

Are you referring to digitalization?

Digital technologies will play a key role in connecting our machines to the customer’s entire production workflow.

Through B/On and the recent acquisition of Orchestra, we are building an ecosystem in which software, data, and machinery work together seamlessly. We are investing in solutions that create long-term value, supported by customer care and comprehensive service offerings.

Our ambition is not simply to sell a machine, but to manage its interaction with the entire production environment. This also strengthens our competitive position by creating a more continuous and strategic relationship with customers.

In which segment does Biesse have the strongest competitive advantage?

In stone processing, where we offer the most comprehensive product portfolio in the market, further strengthened by the acquisition of GMM.

Wood remains our historical core business and the sector on which we built our technologies, sales network, and complete production lines.

In glass processing, the acquisition of Forvet has expanded our portfolio and strengthened our position in highly automated applications.

Our true strength lies in combining expertise developed across different materials and industries.

Can service become a growth engine?

It must become one.

We have more than 50,000 installed machines worldwide, and every technician entering a customer’s facility represents the company’s most important calling card.

We are reopening the Pesaro Academy to train technicians, sales professionals, and account managers on our new product pre-series. Service, spare parts, predictive maintenance, and rapid response capabilities are competitive advantages that low-cost competitors struggle to replicate.

The Pesaro plant is currently using temporary reduction of working hours scheme. How does this align with ongoing investments?

It is not a measure we particularly like, but it allows us to preserve critical skills and expertise while demand remains weak.

At the same time, we must continue investing in product innovation and workforce development. Our financial priorities remain cash management, inventory control, and working capital optimization. Profitability must return on a sustainable basis without compromising innovation.

The company’s share price has come under pressure. Will Biesse remain publicly listed?

Yes. We remain fully committed to our public market listing and focused on executing our industrial strategy.

Financial markets sometimes struggle to fully appreciate sectors characterized by long investment cycles, such as ours.

Following the leadership transition, I returned as CEO alongside Stefano Porcellini as Deputy CEO. The success of our plan depends on the factors we can directly control: products, services, discipline, and speed of execution.

Could incentives such as enhanced depreciation schemes support the recovery?

I do not build our strategy around public incentives. Such measures tend to create artificial peaks and downturns, making long-term planning more difficult.

What businesses truly need is stability and predictable rules.

For us, this period should be an opportunity to rethink technologies and return to growth on stronger, more sustainable industrial foundations.