Record-breaking pipes and tubes: a word with Mr. Amenduni

His is a compelling entrepreneurial story, which started in Ancona and ended in Brescia, passing through Turin, pursuing the dream of becoming the first Italy-based steel tube manufacturer to offer all diameters - yes, all - and all types of finishes. His name is Michele Amenduni, founder of the homonymous industrial group, who, in the end, managed to realize his dreams. We had a word with him to learn more about his journey, the current state of affairs of the tube sector, and its future outlook.

Let's retrace together the history of Amenduni Group. How has your company evolved from 2000 to today?
We founded Zinchitalia in that year and started operating in 2001. We began by taking over the galvanizing department of a production plant in Monsano (Jesi). At the time, we only offered third-party galvanizing services. Then, in 2002, we acquired a well-known producer of welded pipes operating in the port of Ancona with a large facility, Tubimar, and moved there from Monsano. We started buying steel pipes and selling them under our brand after galvanizing. In a short time, we reached a 10 million euros turnover, but we soon found ourselves in the need of producing our own pipes. We could either set up new production lines ourselves or buy an already established company.

What did you opt for?
The latter. After long research, in 2007, we discovered Tecnotubi, an excellent company in Brescia, which was also well-established abroad, and that we acquired with a leveraged buyout. We then also moved Zinchitalia to Brescia, building a new plant from scratch, thus managing as a group to cover the entire range of possible diameters up to 8 inches. In 2014 the circle came to a close: we acquired Alessio Tubi and completed our portfolio with tubes up to 20 inches, with all possible finishes, including galvanizing, sleeving, painting, etc.

What are your strengths? What makes the Amenduni Group unique?
The complete range of tubes we can offer, coupled with the various quality finishing processes, is what makes our company exceptional. No other pipe manufacturer - not even the most renowned brand names and the other key players in the industry - can offer all diameters up to 20 inches in all finishes.

What are the target sectors of your products? And the main key areas for your business?
Our offer includes gas, water, and oil pipes, rollers and industrial machinery, hydraulic cylinders, structural tubes (used in the construction of stadiums, bridges, and large buildings), as well as carpentry tubes.

Which countries are you focusing on? And which markets look the most promising to you at the moment?
We currently export mainly to Europe, especially Germany, the Netherlands, and France. We also had a well-established presence in the USA and Canada. Unfortunately, our business in those markets has been affected on the one hand by Trump's introduction of Section 232, which has priced us out, and on the other by the global health emergency. It's a market that we continue to keep an eye on, however, and one that we plan to catch back on.

Where are your suppliers located?
We mainly source from selected Italian suppliers, very often in the geographical area of our plants (Brescia and Turin). As far as production lines are concerned, we also cooperate with German manufacturers.

The shortage of raw materials and fluctuations in transport prices are having a considerable impact on the markets. How have they affected your business?
That has been a very burdensome issue for the industry. The cost of raw material from August 2020 to now has practically tripled. It's true that, to an extent, we are charging some of these increases onto our customers, but we are also experiencing sourcing and availability issues. Also, we have not been supported by the banking sector, which has not followed the trends of the real economy at all.

Are you planning any investments in the near future and, if so, in which direction or area?
At the moment, we have two big projects in the works. The first is a 6 million euros investment in the Turin plant for a finishing line for tubes up to 20 inches with an ultrasonic control system. We also plan to install a 2 million euros annealing treatment furnace plus a tube packaging line in the Tecnotubi plant in Brescia.

Let's talk about fairs and exhibitions: did you attend any events in the last few years? What are your plans for the upcoming months?
We invest a lot in Tube Düsseldorf, which gathers the whole tube sector. Nowadays - I think - it is the only exhibition where you can have a real return on your investment. By now, we are already well-known abroad (we have an export share of 65%), but the fair offers us an opportunity to meet all our partners in a single week. We have already confirmed our attendance for Tube 2022.

In your view, how has the tube sector faced the crisis? Is it correct to say that we are currently experiencing a period of market rebound?
The market is undoubtedly rebounding, with significant profit margins, but the crisis has been very heavy. Besides the price increase in raw materials and some payment difficulties, the biggest problem, in my opinion, is the role of the banks. The banking sector has not been supporting companies at all. And the Anti-Covid19 Economic Maneuver has saved the banks more than anything else, allowing them to refinance old credits.

What do you think are the variables in play, and what is the general outlook for the second half of the year?
Commodity prices seem to have stabilized at the moment. I believe that the second half of the year will go broadly the same as the first. We will see if the situation improves in 2022. Making predictions today would be risky.

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