Nothing can replace leather

Leather is still finished by part of the original group but the crisis in the industry in the sixties and seventies forced the company to look for other business opportunities, helping the 'old tannery' to become what is known today as the Chiorino Group.' However, the book offers an interesting insight into the ups and downs of the Italian leather industry in the twentieth century particularly of the time between the two wars when state intervention became increasingly invasive. The early years of the twentieth century saw steady growth in the Italian tanning industry taking it into fifth place in the manufacturing league for adding value as imports of raw hides and skins mushroomed from 12,900 tons (1875-1879) to 21,000 tons (1900-1904). Between the turn of the century and the outbreak of WWI, new mineral tanning techniques were introduced leading to an increase in the size of tanning businesses but seeing many of the plants using traditional methods disappearing. It is during this period that Chiorino were founded in Biella. While the growth in the industry, along with increasing mechanisation, created a demand for leather belting this would eventually lead to rubber and then to thermoplastic materials. In addition to an increase in demand for footwear and small leathergoods, automation of industrial manufacturing processes and the introduction of steam machines and electric motors called for a large quantity of leather components. The durability and reliability offered by leather belts were decisive in fostering their success. 'Fine tuning of tanning procedures, made possible by the recent technological innovations, resulted in impermeable, uniform, flexible and lightweight products. At the end of the 1920s the Italian Leather Industry and Trade Association estimated that leather belts accounted for 80% of the consumption in normal transmissions and perhaps 90% in the main control transmissions. 'In 1914, despite the progress made, the total capacity of the national industry was still not enough to meet domestic demand; a large quantity of tanned hides had to be imported and there were still wide margins for additional growth.' In 1904 Piedmont was the leading Italian tanning region with 194 factories and Biella providing a substantial presence. In 1892, Biella was home to fourteen tanneries employing 170 men and 77 horses. By 1909, the number of tanneries had fallen to six but together they employed 277 men and 119 horses (39 of them electrical). Lorenzo Chiorino began his working life with the Antonio Varale tannery in Biella but after 8-10 years there he decided to start up his own business. The Lorenzo Chiorino tannery began operations in 1906. In 1910 he went into partnership with his younger brother Umberto and Fratelli Chiorino came into existence. The business was effective from January 1, 1911, with a term of fifteen years stated for its duration. However, the agreement foundered six years later when the company was split into two competing companies. The reasons for the two brothers deciding to go their separate ways are lost in the mists of time but it was certainly not due to lack of success. And the split could not have been without pain as the two companies were now in direct competition with each other and could no longer benefit from the economies of scale offered by their combined efforts. However, nothing daunted, Lorenzo bought some of the machinery from the liquidated tannery, purchased land for his new tannery and ordered new machines to upgrade his equipment. The wartime economic period was extremely lucrative and the entire tanning industry benefited from it, earning large revenues due to a huge increase in turnover rather than expanded profit margins. Concerned with obtaining an adequate supply of boots for the armed forces, the government interceded in production plans and 'in the fall of 1914, decreed it to be illegal to export hides and skins of any sort and in 1915 price controls were established on tanned hides. 'At the same time, introduction of an assignment system through weekly public auctions of raw hides from butchers at the front lines had made it possible for tanneries to operate in ample supply conditions of raw materials and cut out the wholesale merchants, preventing profiteering and other forms of speculation. 'By virtue of these special circumstances, the end of the first year of operation, in 1917', the company experienced a marked increase in their capital amount. By '1919, however, the first signs of the hardship that the post-war period would bring were beginning to appear.' In Turin alone, 2,200 workers out of a total of 4,058 lost their jobs and, at the end of 1921, the Piedmont tanneries were only averaging a three-day week. The Lorenzo Chiorino tannery managed to limit the damage in 1920 by reducing capital and drawing on their reserves. By 1921 Lorenzo was again looking at new machinery. There was another downturn in 1927 due to the unexpected revaluation of the national currency and the tannery made a loss that year, picking up again for the next two years. 'On the eve of the international crisis in Europe, the Italian tanning sector was already showing signs of an uncertain future. Starting in 1929, the sector magazine, house organ of the National Fascist Federation of the Tanning Industry, began to publish signs of concern.' The European market for raw hides and skins was heavily affected by Germany, the biggest importer. In Italy, imports were much higher in the three years from 1927-29 due to higher levels of inventories rather than a boost in production, and in 1929, national exports dropped significantly. During the first half of 1930, 'the widespread reduction in industrial activity caused by the crisis, the increase in unemployment, reduced purchasing power of the population, and consequently of consumption, had very acute effects on the sector. It reacted by dramatically decreasing production and making drastic cuts to reduce the price of tanned products to bring it into line with the cost of raw hides. 'Sales gradually contracted until reaching their lowest level in 1932' when they were roughly equivalent to half the sales revenue of 1928. The company posted growing losses from 1930-32 but began recovering in 1933. 'Even in the leanest years, such as 1932, Lorenzo never neglected to set aside internal resources to acquire new 'more advanced machinery' with the declared objective, as he wrote to the creditor banks while illustrating the corporate financial statements, to have the 'ability to achieve a reduction in costs by using the best technical equipment.' 'For the Lorenzo Chiorino tannery the years from 1935-40 were golden years.' Adjacent properties were purchased and the tannery expanded. Thereafter, investment in structures, systems and machinery continued during a period of high inflation. This was finally brought under control in 1947 when a strict monetary policy was imposed. At the end of the forties, the tanning industry was still in dispute with raw hide traders over what they considered to be unjustified price levels. Eldest son Fulvio joined the family business in 1928, followed five years later by Angelo. In 1943, when Lorenzo was 76 years old he 'relinquished his operating responsibility and began to transfer all his authority to his sons. At this point, Conceria Lorenzo Chiorino ceased to exist and was re-established in the form of a partnership under the name Conceria Lorenzo Chiorino e figli. Chapter 2, Leather, Rubber, Plastic: profile of a metamorphosis, 1958-82 This period was characterised by the growth in the use of alternative materials and the search for new applications. In the seventies Chiorino diverged from their reliance on the textile industry and took on new sectors which included engineering, paper, packaging and food. It was these changes that put the company on the path which was to transform the ancient tannery from a manufacturer of industrial leather articles for the local textile district into a multinational group which has successfully met the challenges of international competition. Lorenzo Chiorino, first-born son of Angelo and first of the third generation, was the first to join the family business in 1962. Later the same year, Fulvio's eldest son Gian Polo also joined the company, ultimately to leave and set up his own business. Various other family members joined leading the two branches of the family to separate in 1997. More recently still Lorenzo separated the capital structure of Conceria Chiorino from the group leaving his brothers Gregorio and Amedeo to continue with the Chiorino Group. The tannery is vastly different from the original and, in deed, at one time flirted with the name Chiorino Chemical to better reflect its production of upgrading finished splits by applying a polyurethane coating. The consistency of the process enables them to sell their leather to upmarket manufacturers of leathergoods and other finished goods who require exactly the same quality of leather time after time. The tannery has now reverted to the title of Conceria Chiorino SpA.