(Alliance News) - GM Leather Spa announced Thursday that, through its subsidiary Genesi Srl, it has finalized an extraordinary transaction that allows the group to internalize an upstream production process in order to bring marginality and preside over the phases with greater added value from a green perspective.

Genesi has signed with Conceria Palladio Spa a business branch lease agreement and a sublease agreement for real estate instrumental to the operation of the business located in Zermeghedo (VI), in part already leased to the associated company Snam di Marcigaglia A e C Srl.

The contracts provide for a term of 20 years effective March 1, 2023 - with the possibility of tacit renewal for an additional 10 years in the absence of termination to be given at least 12 months' notice - and an additional annual fee for the GM group of EUR276,000.00 plus VAT.

Genesi takes over from Tannery Palladio as the employer of 22 employees.

At the same time, GM Leather purchased machinery, equipment and movable assets from Conceria Palladio with a total value of EUR5 million plus VAT.

"Conceria Palladio represents for GM Leather a historical supplier that carries out, for the fresh leathers purchased by the group, the preliminary activities of greening, liming, fleshing, decalcination and pickling aimed at tanning and subsequent splitting of the leather in full thickness to obtain the wet blue grain," the company explained in a note.

GM Leather on Thursday finished in the green by 0.9 percent at EUR1.71 per share.

By Claudia Cavaliere, Alliance News reporter

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