We pursue a strategy aimed at strengthening our leadership in white cement, high added value solutions and special cements. We aim for operational excellence, product innovation and sustainability as tools to continue to grow and generate higher returns for our stakeholders.
Our decarbonization path
The Group has given a strong acceleration to its sustainability commitment by further reducing its CO2 emissions targets in the updated decarbonization Roadmap to 2030, which will embrace new technologies such as Carbon Capture and Storage (CCS). The new Industrial Plan includes around 86 million Euro of sustainability investments in the period 2023-2025, distributed across the value chain and centered on four main categories: a) increase usage of alternative fuels and raw materials; b) low carbon cement and innovative green solutions; c) process efficiencies and recycling; d) digitization of key processes
86 million sustainability investments in the next three years
CO2 reduction target of 36% in grey cement and 19% in white cement by 2030 (vs 2020 baseline)
|Alternative fuels and renewable raw materials||Low carbon cements||Operating efficiencies and Circular economy||Digitization of key processes|
Sustainability and target of 30% CO₂ emissions reduction by 2030
Cementir has defined specific sustainability objectives in line with the United Nations Sustainable Development Goals to promote the circular economy, reduce the impact on the environment, give value to people and communities and promote health and safety in the workplace. These ESG targets are embedded in the Group strategic objectives and management’s incentive schemes.
The Roadmap to 2030 has been updated and includes objectives to further reduce Scope 1 CO2 emissions by 36%1 to 460 kg per ton of grey cement, a lower emission level than the threshold imposed by the European Taxonomy. For white cement, a niche product for specific applications, the plan is to reduce emissions by 19% to 738 kg per ton by 2030.
The levers to achieve these new objectives are, among others: the reduction of cement clinker ratios, the greater use of less polluting or alternative fuels, the increase of kilns thermal efficiency. Part of the CO2 emissions reduction will be achieved through a new carbon capture and storage (CCS) facility to be installed at Aalborg (Denmark), where the Group has started a pilot project partly financed by the Danish Innovation Fund.
In the three-year period 2023-2025, the Group expects to invest approximately EUR 86 million in sustainability projects including: the upgrade of a new kiln at the Belgian plant to increase the use of alternative fuels from the current 40% to over 70%; the increase in alternative fuels usage in Türkiye and natural gas in other Group plants; other projects to reduce the climate impact of transport, procurement, logistics and the optimization of water resources in the production process.
1 Target reduction based on the 2020 baseline.
The Group continues to increase the production of new low carbon cements and other high value-added sustainable products such as FUTURECEM®, which allows a 30% reduction of CO2 emissions by reducing the clinker content in cement. Some pilot projects are also being undertaken in Carbon Capture and Storage, with the participation of leading industrial and technological partners.
The Group continues to implement a series of actions to increase the efficiency of manufacturing and logistics processes, making the entire production structure leaner, more dynamic and efficient, with process digitization initiatives, intelligent preventive and predictive maintenance, advanced production control systems, intelligent logistics, warehouse management and integrated digital sales planning.
Growth and positioning
Cementir will continue to invest in strengthening vertical integration and its competitive position in the Nordic & Baltic, Belgium and Türkiye business regions, as well as consolidating its global leadership in white cement with targeted actions in strategic markets. The Group will also be ready to seize potential external growth opportunities in the core business.
People and Organization
Our people are the most important resource we have. Our commitment will be focused on health and safety with the initiatives envisaged by the Zero Accidents program, on the development of human capital and the enhancement of skills through an integrated system of evaluation and growth of people to improve individual and the entire organization performance.
Economic and financial objectives
The Group Plan envisages the achievement of the following targets in 2025, which exclude IAS 29 impact and non-recurring items:
- Revenue up to around EUR 2 billion, with a compounded annual growth rate (CAGR) of 5-6%. Over the period of the Plan, a moderate increase in sales volumes of cement, ready mixed concrete and aggregates is expected in all geographical areas, starting from 2024; the Asia-Pacific region is expected to see volumes recover as early as 2023. Any price increase is expected to offset the significant increase in energy, raw material and logistics costs.
- EBITDA of approximately EUR 400 million, with a compounded annual growth rate (CAGR) of around 6%. EBITDA is expected to grow in all geographical areas. The Plan assumptions include a double-digit increase in the cost of fuels and electricity and an average yearly CO2 shortage of approximately 300,000 tons, which represents a 40% improvement from the previous Industrial Plan.
- Average annual maintenance and expansion capex of approximately EUR 81 million including health and safety and digitalisation.
- Additional cumulative sustainability investments of EUR 86 million to achieve the ambitious decarbonization targets set out in the 2030 Roadmap.
- Net cash position of over EUR 500 million by 2025 year end, deriving from better results and consistent cash generation.
Finally, the Plan assumes the distribution of a growing dividend, corresponding to a payout ratio between 20% and 25%.