A legacy of 40 years

Today I will talk a bit about history!

In the 1930s, the chemist Wallace Reuters in the United States led a research program aimed at synthetically reproducing natural molecules such as cellulose, silk, and rubber. Initially, the main goal seemed to have failed, until, by a stroke of luck, nylon was discovered, which turned out to be an excellent material for synthetic threads and fibers. It immediately entered the American military plans during World War II for the production of parachutes, cables for the navy, and other relevant military applications.

Since then, thousands of products have been developed from polymer research, and nowadays they are present in many aspects of our lives. It is in these aspects and respective markets that the Mazzaferro family has been solidly present since 1953, for over 70 years, with a long history to tell… But I promise to be brief!

Throughout the 1950s, 60s, and 70s, polymers, threads, synthetic fibers, bristles, ropes, and nets were introduced by the company in Brazil. In many cases, being pioneers of the first local production of the product, replacing imports and contributing to Brazil’s industrialization and its economic miracle. Over these decades, engineering plastics advantageously replaced metal in the manufacture of automotive, electronic, and tool components, while synthetic threads began to replace natural ones, and nylon films started to be widely used in food packaging. The company captured all these trends and grew with them.

It was in the early 1980s that the Mazzaferro Group decided to split its activities into distinct business units, allowing more effective exploitation of specialized market niches. This is when the business units Mazzaferro Technopolymers, Mazzaferro Fishing Products, Mazzaferro Synthetic Fibers, and Mazzaferro Technical Monofilaments (today’s MZF4, born in 1984) emerged. Today it’s 40 years, but as you just heard, the history of this business unit began much earlier!

Those with gray hair like mine know that any business born in the 1980s in Brazil faced very adverse conditions. The famous “lost decade” was characterized by turbulent and challenging events:

• The uncontrolled public accounts brought rampant inflation and capital flight, which compromised investments and the country’s reserves, leading to repeated external debt solvency crises.

• The governments of Brazil’s young democracy launched misguided plans to combat inflation without addressing the root causes, thereby inflicting severe losses on the population, who ended up paying the price for their rulers’ indiscipline.

• The country had lost its economic direction and stagnated for an entire decade.

Even in this challenging scenario, MZF4 established itself as a regional specialist in high-value-added technical monofilaments and bristles. Exports accounted for almost 30% of production. The unit based its growth and strengthening on its technical competence with European technological roots and significant investments in technology from our polymer unit.

The 1990s brought a more pragmatic and less deluded Brazil after suffering the consequences of misguided economic policies. In 1994, the Real Plan not only eliminated hyperinflation and anchored the country fiscally but also opened the Brazilian market to external competition and global competition.

At the beginning of this decade, the second generation, of which I, Claudio, and Giovanni are part, entered the day-to-day operations of the company. Still in the midst of Brazil’s economic crisis! We adjusted the capital structure to the new reality of the country, new processes were implemented to maximize productivity, and investments were made in the renewal and development of human capital. It was in this scenario and with this mission that we joined the company, in the midst of inflationary chaos and the challenges imposed by the lost decade. I remember my father’s anguish as he introduced us to the company during the most challenging period in its history.

Despite facing economic challenges, the company continued to seek growth. My older brother Giovanni led the implementation of a manufacturing unit in Rio Grande do Sul for the production of household goods, introducing cutting-edge technology, pioneering in Brazil at the time, and imported from Italy. My brother Claudio joined the company shortly after, dedicating himself from the start to the Technical Monofilaments unit, precisely today’s MZF4, where over the years he acquired knowledge that makes him a global expert in the sector.

The 21st century was one of the full transition from the first to the second generation and the pursuit of professional management and the best corporate governance practices. Mr. Nello, our father, with the practicality typical of those fulfilled in work and family, used to say: “I trust our kids. They will continue our work, and I hope they do even better than we did. I arrived in this country and immediately saw opportunities; there was much to be done and good people, very good people. I haven’t changed my mind until today. I was very well received, built a family – I have children and grandchildren – and here I built my life.”

I had a happy life among family, friends, and work. It is what I achieved in the company: bringing together family, friends, and work in one place and realizing my dream. Today, based on this legacy, the family remains solidly united around the business, with the necessary professionalization in management and governance. We continue the journey of our founder, who laid the foundations of our company. And thus, we will continue to work to ensure the present and future of MZF4.

MAURIZIO MAZZAFERRO | CEO Mazzaferro Fishing