Company reorganisation was drastic and quick and it affected all main aspects of the enterprise, from the technical or production side to matters concerning trade and administration. Uneconomic departments such as foundr......Company reorganisation was drastic and quick and it affected all main aspects of the enterprise, from the technical or production side to matters concerning trade and administration. Uneconomic departments such as foundry, sandblasting and fettling were shut down, while iron casting was diverted to Fonderia Zecchi at Collebeato, 25% of this share parcel having been acquired by Palazzoli. Workforce was reduced by 71 units (to 57 workers and 14 clerks). Equipment was updated by means of massive investment. Machining departments were reorganized, and the store was fitted out in line with modern standards. The San Bartolomeo factory, not far from Rome (belonging to Bombrini-Parodi-Delfino), was bought out, demolished and re-built some 38,000 sq m of adjacent land was also bought. This was eventually (in 1985) to be the site of a new 10,000 sq m production plant which is still in operation. This drastic therapy continued all through the following year, with a further 12% reduction of the workforce, and production costs being cut by 16%. Serial products with a higher demand replaced those specialised items that had virtually been produced as craft artefacts. The effects of all these measures soon made themselves felt. Balance sheets began to show a profit again (40 million it.L. in 1967 696 million it. L. in 1977) annual turnover started increasing once more (700 million it.L. in 1969, corresponding to a 22% increase). The new factory (covering 31,600 sq m in an area of 182,600 sq m) began to function in 1970 and the old premises were sold. As a result, productivity began to increase and a great many small-scale operations were assigned to third parties. The product range still numbered more than 2000 serial products the change of focus brought in by the new management was reflected in the standardisation of components and finished goods - to bring them in line with the technical requirements of installers. Advanced products and innovative materials Nor was the field of advanced research neglected. In 1971, prototypes of CEE sockets (for plugs) and insulating modular socket casings from polyester resins reinforced with fibre glass were launched (fibreglass was being produced for the first time in Italy). In the same year, a modern data-processing system was put into operation. This encouraged a great thrust forward in terms of plant and equipment modernisation, and contributed to making 1973 and 1974 golden years for Palazzoli as far as production and sales were concerned. In 1977, a new 4,500 sq m building was erected as a store for semi-finished metal parts, and to contain the department for shears, bolts and screws, as well as automatic lathes. Even in the harsh Seventies, Palazzoli managed to achieve some remarkable results both in terms of finance and assets (thanks to a solid endowment of stock and property). This more than compensated for the drop in industrial income and helped to ensure that company balance sheets showed a profit. (In 1980, profits amounted to 796 million it. L., with negative balances for industrial activity in 1981, 954 million it. L. thanks to the way the new company had become a stock stronghold - in spite of negative industrial balance sheets). On 29th December 1977, company stock was tripled (from 800 million it.L. to 2.4 billions): turnover recovered, too: the 10 billion registered in 1978 rose to 11.9 million in 1979 and to over 18 billion it. L. in 1981. Material innovation and updating was still being pursued to maintain Palazzolis reputation for top-quality products. If in 1972 aluminium had replaced cast iron, by 1979 thermosetting plastic materials started to set the pace insulating materials with superior electric and mechanical features that caused moulds and equipment to be transformed. In 1980, 250 people were working for Palazzoli. The company was exporting its products to the countries of the EEC, to the Middle East, Korea and South America, besides supplying the major Italian engineering and building companies specialising in international tenders and contracts. Its production lines were outputting electrical safety, protected, watertight, low voltage equipment and appliances for application mainly on industrial, naval, civil, agricultural and tertiary systems. A highly specialized catalogue Palazzoli reduced the number of products included in its catalogue and limited to those that were of a more specialized nature: 2,200 articles including industrial equipment compliant with safety regulations, CEI and EEC standards, UNEL, UNAV and DIN Standardization tables, MMI, R.I.Na., LLOYDS REGISTER homologation, and guaranteed by IMQ (the Italian quality mark). The catalogue also offered devices specifically designed to be mounted on systems used on board merchant or military ships, as well as special appliances for agricultural, industrial, naval or civil use. Further products included a super-specialist range of CAM Series control devices, distribution boxes, cartridge fuses, fuses featuring high rupturing capacity, modular bases, various water-t