"The company has diversified to fit the strategic sectors in the new economy." said Achille Colombo, CEO of Falck Group. "First of all, we no longer have any steel activities, except for a few service centers. We are now involved in the mechanical activities of renewable energy and environmental services,"
The formal decision to change focus was taken in 1994. The steel business has very little competitive advantage in the new economy. Colombo explained "The amount of money we would have to spend to make the business competitive is huge, and it would mean relocation of the steel mills out of Milan"
The energy and environment sectors, however, provide much more substantial growth. "In the energy and environment business, the margins can be very high." said Colombo. "If you take the consumption per person of steel in Italy. the potential for growth is not high. If you take energy per person, even in the industrialized world. Therefore the potential for increase is much higher."
This dramatic change in direction was not easy for the company, Colombo explained, "The company was previously used to another world, so we have had to adapt quite quickly to the changes."
Their success to date, however, can easily be noted. Since the early 1990s, Falck has grown its energy business from a small, captive producer of hydropower to a major player in the electricity market in Italy. The Group operates in the energy sector through Sondel SpA, and this "clean energy" brand has been implemented through the development, construction and operation of renewable-energy generation plants. The annual rate of growth for 1999 was 95 percent.
Colombo explained, "Through Sondel, we operate 11 hydrolectric power plants and eight thermoelectric plants today. We are therefore the second-largest private producer of electric energy in Italy. Our thermoelectric power plants are all based on the gas-fired co-generation technology, ensuring high efficiency and low emissions, compared to conventional fossil-fuel plants."
Falck is heavily investing in the environmental activities with a special focus on "waste-to-energy" business and biomass projects. "Falck demonstrates its concern for the environment through Ecosesto, a leader in the treatment and disposal of industrial and municipal waste," explained Colombo. "By implementing modern technologies and reliable management, we are committed to develop sustainable solutions for the waste-disposal problems of communities."
Falck is also the latest traditional Italian company to team with a technology partner to take advantage of booming Internet use in Italy. In May, Falck announced the agreement to set up an Internet site with e-Biscom, an Internet and telecommunications company, through which companies and individuals can communicate with local government 24 hours a day in order to bypass bureaucracy. A Dutch company called Innovation Utility, equally owned by Falck and e-Biscom, will control the joint venture, called SmartCity.com.
"Many people still think of Falck as a steel company," said Colombo. "But we are beginning to be recognized as a player in the energy business. We are still small, and we mainly work in the Italian market. However, we are also looking to develop projects in Laos, Iran, Saudi Arabia, Zambia, Brazil and Turkey. We want to develop projects where we can be competitive and innovative, and we are doing this by following the principles of sustainable development. So whatever we do today, will not create problems for the people of tomorrow."
Buongiorno Milano!
Milan, a busy, enterprising city famous the world over as a business and shopping capital, never fails to demonstrate its many qualities and points of interest to its visitors.
Discovering the City
Piazza del Duomo -- This Cathedral has become the symbol of the city.
Teatro alla Scala -- The opera house is one of the most celebrated in the world. For tickets, call 02- 7200-37 44.
The Last Supper --Leonardo's famous fresco is in the Church of Santa Maria delle Grazie. Tel: 199- -199-100 or 02-8942-1146
Classic Shopping Parades
Piazza San Babila
Via Montenapoleone
Il Brellin Ristorante -- A typical Italian restaurant
Address: Vicolo Dei Lavandai, Navigli District, 20144 Milan. Tel: 02-5810-1351
Roialto -- A restaurant and bar in a converted warehouse
Address: Via Pier della Francesca 55, Milan. Tel: 02-3493-6616
10 Corso Como Café --High class modern restaurant and bar.
Address: 10 Corso Como, 20154, Milan. Tel: 02-2901-3581
Peck -- Gourmet delicatessen and wine cellar (the restaurant will reopen in September)
Address: via Spadari 9, Milan. Tel: 02-860-842/3
Physical fitness
The opportunities to practice sport in Milan are endless. Go to one of the city's parks on a Sunday morning and you will see a huge army of joggers. Better still, join a gym, and have all you needs catered for under one roof.
Wellness Gym is a well-equipped private sports club. It offers a state-of-the-art gym, swimming pool, sauna, spa and Jacuzzi. Alongside this, you will find fitness classes for all levels, and lessons in Fiori (a therapy using flowers, to help relax the body).
Address: Viale Liguria, 46. Tel: 02-8940-3040 or Via Tagliamente, 19. Tel: 02-5691-181
Michaelangelo's Rondanini Pieta