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.
The green capex and the 2030 objective of reducing CO2 emissions
The Group has given a strong acceleration to investments in sustainability and digitization with green investments of around EUR 100 million in the three-year period 2020-2022.
EUR 100 million of green investments in the 2020-2022 three-year period
CO2 reduction target of 30% by 2030
|Raw materials and alternative synergies||Innovation||Circular economy||Cementir 4.0|
We intend to implement a series of actions aimed at improving efficiency and containing costs. The development of the trading company Spartan Hive, with a growing volume of activity over the three-year period, will help to optimize purchases and logistics of raw materials, fuels, spare parts and finished products.
White Cement Leadership
We aim to consolidate our leadership position in white cement, keeping it where we are strong and developing it in our strategic markets: Western Europe, Egypt, China, Malaysia, Australia, North America.
With 3.3 million tonnes of white cement production capacity installed on 6 plants distributed in 4 continents, we reach around 27% of world trade in white cement.
Digitization of industrial processes
We are starting the Cementir 4.0 program to improve industrial processes in cement production plants using new digital technologies. The digital transformation focuses on the entire value chain, from procurement to production processes, to maintenance and logistics.
Technological innovation and development of special products
We invest resources in the development of innovative products and solutions by leveraging one of the most advanced research centers in the world. We intend to develop new business models with opportunities for downstream integration or strategic partnerships and promote high value-added innovative products and applications including Ultra high performance concrete (UHPC), glass fibre reinforced concrete (GFRC), concrete for 3D printing. We will develop the production of new types of cement based on the FUTURECEMTM technology, patented by Cementir, which will reduce the amount of clinker content in cement and consequently reduce CO2 emissions, significantly contributing to increasing the environmental sustainability of our products.
The Aalborg InWhite Solution® platform, with a range of products and solutions with high added value, also responds to the most complex needs of our customers.
Sustainability and target of 30% CO₂ emissions reduction by 2030
The objective, which has differentiated targets between grey and white cement, will be achieved through greater use of alternative fuels and renewable resources, the reduction of thermal consumption and the clinker ratio of cements
We are investing around EUR 100 million in various projects aimed at improving the environmental sustainability of our activities:
- We are committed to increasing the distribution of district heating to 50,000 families in Denmark, where we are designing the construction of 8 MW wind farms for the electricity needs of the Aalborg plant.
- In Denmark and Turkey we invest in technologies to reduce the thermal energy needs of the plants and in Belgium we intend to double the use of raw materials and alternative fuels to cover 80% of their needs.
- We process around 400 thousand tonnes of urban and industrial waste between Turkey and the UK each year, producing over 100 thousand tonnes of waste fuel per year for our cement plants.
We maintain solid financial discipline and constant attention to cash generation thanks to the optimization of working capital and investments, maintaining a capex / revenue ratio of 5%, excluding EUR 100 million of green investments.
Our people are the most important resource we have. We will continue to develop and enhance internal skills and professionalism through an integrated people evaluation and development system to ensure growth and improve the performance of our organization.
Economic and financial objectives
The new Group Business Plan envisages the achievement of the following objectives by 2022:
- Cumulative EUR 100 million Green investments over the plan, for specific projects in the environmental field, for Cementir 4.0 project and product innovation, which will allow a cost reduction of EUR 25 million starting from the second half of 2022;
- Revenues of between EUR 1.3 and 1.35 billion, with growth supported by an increase in sales volumes of grey and white cement, ready mixed concrete and aggregates in all geographical areas with prices in line with the increase in the relevant markets;
- EBITDA of over EUR 300 million, with EBITDA margin up 300 basis points to around 23% by 2022. These results will also be achieved thanks to the Cementir 4.0 program which will contribute around EUR 15 million in 2022, and to the aforementioned sustainability investments;
- Annual investments of approximately EUR 70 million for the development of production capacity and maintenance of plant efficiency;
- The expected cash generation will allow to reach a net cash position by 2022, guaranteeing financial flexibility for possible further growth opportunities.