A Phoenix Feat: How Fabricato Pulled off a Strategic Restructuring Operation

What were the technologies that you discarded? And what were the new things that you brought in? How were the people trained or re-trained?
Giorgio Lignarolo: Over time, we phased out older textile machinery and adopted state-of-the-art technologies in textile production and sustainable practices. Our employees underwent training to adapt to these changes, ensuring they could operate and maintain the new equipment effectively.

Technologies discarded:

• Outdated machinery: Fabricato phased out older textile machinery that was less energy-efficient and produced fabrics of lower quality. These machines were not conducive to the demands of modern textile production.
• Traditional dyeing methods: Conventional dyeing processes that consumed large amounts of water and chemicals were replaced with more sustainable and efficient dyeing technologies. Fabricato adopted advanced dyeing techniques to minimize environmental impact.
• Manual labour-intensive processes: Labour-intensive processes that were slow and less accurate were automated or upgraded. This reduced production time and improved consistency in product quality.

New technologies implemented:

• Advanced looms and spinning machines: Fabricato invested in state-of-the-art looms and spinning machines that improved fabric production efficiency and quality. These machines allowed for more precise control over fabric properties.
• Eco-friendly dyeing and finishing: Fabricato adopted eco-friendly dyeing and finishing technologies that significantly reduced water consumption and chemical use. These technologies not only improved sustainability, but also met the demands of eco-conscious customers.
• Data analytics and automation: Fabricato introduced data analytics and automation in manufacturing processes. This enabled real-time monitoring of production, quality control, and predictive maintenance, optimising overall efficiency.
• Waste recycling equipment: Equipment for recycling and reusing textile waste was incorporated into the production process. This minimised waste disposal costs and supported sustainability efforts.

Fabricato initiated comprehensive training programmes for its employees to ensure they were equipped with the skills and knowledge required to operate and maintain the new machinery and technologies. These programmes covered areas such as machine operation, maintenance, safety protocols, and sustainability practices.

For a new organisation, it is easy to stay in tune with the times because you start from ground zero. But for someone like Fabricato—that is over 100 years old—it is a question of constantly reinventing itself and repurposing the outlook. What lessons does Fabricato offer industrialists around the world?
Giorgio Lignarolo: Fabricato's journey underscores the importance of adaptability and innovation for longstanding industrial companies. Continual reinvention, an openness to change, and a commitment to sustainability are essential. Learning from past experiences and embracing new technologies are key factors.

How does Fabricato look at the future? How is it positioning itself in a world beleaguered by geopolitical shocks, trade wars, and supply chain bottlenecks? The risks of tomorrow would be very different from the risks of yesterday.
Giorgio Lignarolo: Fabricato recognises the evolving global landscape. We are positioning ourselves as a provider of sustainable textile solutions, leveraging our expertise to address changing geopolitical and supply chain challenges. We are diversifying our product range and expanding into new markets to mitigate risks.

The textiles industry in Colombia is heavily dependent on imports of raw materials. How does this affect the company's outlook, as well as Colombia's?
Giorgio Lignarolo: Colombia's textiles industry's dependence on imported raw materials does present challenges, especially with fluctuating commodity prices. Fabricato mitigates this by optimising inventory management, seeking local alternatives when feasible, and diversifying sourcing strategies to remain competitive.

Will fabrics remain the core of Fabricato's business? Or, would you be diversifying into garmenting as well? Could you please elaborate on the company's production range? What percentage of your production is export-oriented, and how much is for the domestic market?
Giorgio Lignarolo: Fabrics remain the core of Fabricato's business. However, we are exploring opportunities in garment manufacturing to offer value-added products to our customers. The production mix depends on market demand. We have a significant portion of export-oriented production but also serve the domestic market.

Fabricato's production range may encompass various types of textiles, including:

• Raw fabrics (e.g., cotton, polyester, nylon, blends);
• Finished fabrics with different textures, patterns, and specifications;Specialty textiles for specific industries (e.g., healthcare, workwear, fashion, military);
• Right know, Fabricato exports represent 20% of the total production.

At the other end of the value chain is retail. How is the current state of fashion retail affecting you? What is your understanding?
Giorgio Lignarolo: The evolving state of fashion retail impacts us directly. We closely monitor consumer trends and demands to align our product offerings. Sustainable and ethically sourced textiles are increasingly important in the fashion industry, and Fabricato is well-positioned to meet these demands.

In summary, Fabricato's journey is a testament to adaptability, innovation, and a commitment to sustainability. We are focused on staying resilient in a changing world while continuing to deliver high-quality textiles and exploring opportunities for growth.