We pursue a sustainable growth strategy aimed at creating value for all stakeholders. We strive for operational excellence, product innovation and sustainability as key tools to continue to grow and generate value over time.
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 53 million Euro of sustainability investments in the period 2025-2027, 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.
53 million sustainability investments in the next three years CO2 reduction target of 42% in grey cement and 29% 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 42%1 to 417 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 29% to 653 kg per ton by 2030.
The key levers to achieve these new targets include, among others: reducing cement clinker content, developing low-carbon cements such as FUTURECEM® and D-Carb®, as well as blended cements based on supplementary cementitious materials (fly ash, pozzolan, and slag); increasing the use of less polluting fuels such as natural gas and alternative fuels; optimizing thermal efficiency; enhancing material recycling and reuse.
A key element of the decarbonization plan is the implementation of carbon capture and storage (CCS) technology in Aalborg, Denmark, through the ACCSION project, the first for Cementir and one of the largest full onshore carbon capture and storage value chains in Europe. Once fully operational, this project will reduce CO₂ emissions by 1.5 million tons per year. The Group is also assessing a second CCS project in Belgium.
To reduce the climate impact associated with transport and logistics, the Group is implementing initiatives such as e-procurement, the use of electric concrete mixers and high-energy-efficiency ships.
Over the 2025-2027 period, the Group plans to invest approximately EUR 53 million in sustainability projects, including: upgrading facilities for FUTURECEM® production, switch to natural gas in the Danish plant, carbon capture and storage (CCS) projects in Denmark and Belgium, and other initiatives to reduce climate impact in transportation, procurement, logistics and optimization of water resource usage in the production process. The ACCSION project (CCS in Denmark) has not been included in the planned EUR 53 million; it is worth to remind that the project has received a grant of EUR 220 million by the EU Innovation Fund, also not included in the Plan.
In the field of renewable energy, the Group is signing long-term Power Purchase Agreements (PPAs) with renewable energy producers, while also evaluating the development of wind and/or solar power plants at its own facilities.
1 Target reduction based on the 2020 baseline.
Valuing People
The Group is committed to further strengthening its strong safety culture with the goal to achieve zero accidents through regular training and awareness programs. It also aims to promote diversity and inclusion, enhance human capital development, and foster skills development through adequate evaluation and remuneration policies designed to improve both individual and organizational performance.
Innovation
The Group will continue to increase the production of low-impact products and processes, as well as sustainable, high value-added cements such as FUTURECEM®, which reduces the clinker content in cement and lowers CO₂ emissions by approximately 30%, and D-Carb®. The Group promotes low-carbon cements and concretes with Environmental Product Declarations (EPDs) verified by accredited certification bodies. Additionally, it aims to increase the share of sustainable products, including recycled concrete and aggregates, fostering a circular economy model.
By adopting digital technologies, including artificial intelligence solutions in production, sales, and supply chain management, the Group aims to further enhance operational efficiency, improve customer experience, and drive digitalization.
Competitiveness
The Group continues to implement a series of actions to further enhance profitability and operational efficiency, including process digitization, preventive and predictive maintenance, advanced production control systems, intelligent logistics, warehouse management and integrated digital sales planning.
By streamlining its operations, reducing costs and enhancing efficiency, Cementir aims to improve its financial metrics, position itself for sustainable growth and enhance its ability to compete effectively.
Growth and positioning
Cementir continues to combine organic growth, strategic acquisitions, and targeted investments in key markets. The Group aims at strengthening vertical integration and its competitive position in the Nordic & Baltic, Belgium and Türkiye regions, consolidating global leadership in white cement through targeted actions in strategic markets and seizing potential external growth opportunities in the core business.
Economic and financial objectives
The Group Plan envisages the achievement of the following targets in 2027, which exclude IAS 29 impact and non-recurring items:
- Revenue target of approximately EUR 2 billion, with a compounded annual growth rate (CAGR) of 6-7%. The plan anticipates a moderate increase in cement sales volumes, with acceleration in 2025 driven by increased production capacity in Egypt and a slight recovery in Denmark and the Asia-Pacific region, offset by a slight decline in Türkiye. Stable or slightly increasing volumes are expected for ready-mix concrete and aggregates over the three-year period. Prices are projected to remain generally stable or grow in line with inflation on average and include the Danish CO2 emission tax.
- EBITDA target of approximately EUR 465 million, with a compounded annual growth rate (CAGR) of around 5%. A non-homogeneous performance is expected across different geographical areas, with growth primarily in the Nordic & Baltic region, Belgium, Asia-Pacific, North America, and Egypt, while a decline in Türkiye’s contribution is expected. Key assumptions of the plan include: increased production capacity in Egypt with the restart of the second production line, higher production efficiency in Belgium following the upgrade of kiln 4, rising electricity and fuel costs, and an annual CO₂ shortage of approximately 200,000 tons, including an increase in 2027 due to the reduction in free emission allowances at the European plants. The EBITDA margin is expected to be slightly lower than the levels recorded in 2023-2024.
- Average annual investments of approximately EUR 86 million for the development of production capacity, maintenance of plant efficiency, health and safety and digitalization.
- Additional cumulative investments in sustainability of EUR 53 million for projects enabling a reduction of CO2 emissions in line with the Group’s objectives. This amount excludes, as previously mentioned, the ACCSION project.
- Net cash position of around EUR 700 million by 2027-year end, resulting from cash generation of over EUR 400 million.
Finally, the Plan assumes the distribution of an increasing dividend, corresponding to a payout ratio between 20% and 25%.