EssilorLuxottica to manufacture smart glasses in Italy in major strategic shift
EssilorLuxottica announced on Tuesday that it has reached an agreement with trade unions to reshore part of its smart glasses (wearables) production to Italy, moving operations that were previously based in Asia.
In a press release, the Franco-Italian ophthalmic optics specialist explained that it has signed an agreement with the country's main trade unions (Filctem Cgil, Femca Cisl, and Uiltec Uil) to launch an experimental phase as early as the second half of this year, with the aim of deploying the first production lines by early 2027.
The group specified that this large-scale project will focus on its historic Agordo site in the Veneto region, where an entire area will be fully converted to house these new high-tech activities.
This decision marks a major strategic pivot for the world leader in eyewear, which until now had relied exclusively on its Asian capacity for the assembly and electronic components of its flagship connected products, such as the Ray-Ban Meta AI glasses developed in partnership with Facebook's parent company.
A bet on 'Made in Italy' and the future of the product
This is the first time EssilorLuxottica will assemble and produce its famous smart glasses directly on European soil.
'Establishing the manufacturing of our wearable devices in Italy as well (...) represents a strategic and industrial choice of great value for the group and the entire region,' said Francesco Milleri, CEO of EssilorLuxottica.
The investment, the amount of which was not disclosed, includes the modernization of facilities, the acquisition of new machinery, and staff training. It follows a framework agreement sealed last September between management and social partners.
For Italian unions, this announcement represents a major industrial victory in a European context often marked by offshoring.
'This is an important signal against the logic of offshoring and in favor of an industrial policy that puts labor, skills, and our country's manufacturing capacity back at the center,' the national secretaries of the three signatory unions said in a joint statement.
On the Paris Stock Exchange, EssilorLuxottica shares gained more than 2% on Tuesday following these announcements, as investors viewed the move as a positive signal from the group regarding the outlook for this high-growth business segment.
EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, the company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family.
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.