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 digitalization with green investments of around EUR 107 million in the three-year period 2021-2023.

107 million green investments in the 2021-2023 three-year period

CO2 reduction target of 30% by 2030

Alternative fuels and renewable raw materials Low carbon cements Efficiencies and Circular economy Cementir 4.0
  • 8.4 MW windmills in Denmark
  • Increase alternative fuels over 70% (grey cement)
  • New products (FUTURECEMTM, Aalborg ExtremeTM, Aalborg ExcelTM, Aalborg ExploreTM) with lower clinker content and higher performance
  • District heating in Aalborg
  • Heat recovery from plant kiln for electricity generation
  • Utilization of natural gas in some countries (Egypt, US)
  • Specific heat consumption reduction
  • Natural gas line in Denmark
  • Digitalization of processes
  • Application of digital technologies throughout the entire value chain, from procurement to production, maintenance and logistics processes

Sustainability and target of 30% CO₂ emissions reduction by 2030

To achieve the European climate targets, Cementir has set a CO2 emissions reduction target of around 30% by 2030, with emissions below 500 kg per ton of grey cement. Under the future European Taxonomy criteria, white cement emissions are not included.

This objective will be achieved through a further acceleration of investments for a greater use of alternative fuels and renewable resources, the reduction of thermal energy consumption and clinker ratios, the offer of innovative products and the commercial launch of FuturecemTM.

The Group is planning investments in sustainability and digitalization for approximately EUR 107 million over the three-year period (approximately EUR 100 million in the previous 2020-2022 Plan). Major investments will be made in Denmark for the construction of a new calcination plant aimed at the production of FuturecemTM, the installation of wind turbines with an installed capacity of 8.4 MW, district heating allowing an extension of district heating supply from 36 thousand to over 50 thousand households, and other energy efficiency projects.

Significant investments are also planned in the Belgian plant’s kiln to increase alternative fuels use from the current 40% to 80%, as well as investments for the use of natural gas and biogas in some of the Group's plants.

Innovation

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 are developing 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.

Improve competitiveness

We are implementing a series of initiatives aimed at improving efficiency and containing costs in all geographic areas, with particular attention to lean manufacturing, logistics and maintenance.

Digitalization

We are continuing the Cementir 4.0 program to improve industrial processes in cement plants using new digital technologies. Digital transformation focuses on the entire value chain, from procurement to production processes, to maintenance and logistics.

Growth and positioning

We aim to further consolidate our leadership position in white cement, through a series of specific actions to strengthen the position in main strategic markets.

We aim to improve our industrial and competitive presence, even seeking new acquisition opportunities in core business.

We expand activities of our trading company Spartan Hive, with rising trading volumes over the three-year period, which will help to optimize procurement and logistics of raw materials, fuel, spare parts and finished goods.

Human Capital

Our people are the most important resource we have. We will continue to develop and enhance internal skills and professionalism through an integrated human-resources assessment and development system designed to deliver personal growth as a competitive advantage and to improve individual and organizational performance. 

Economic and financial objectives

The new Group Business Plan envisages the achievement of the following targets by 2023:

  • Cumulative Green capex during the Plan period of EUR 107 million, for specific sustainability projects enabling CO2 emissions reduction in line with Group’s objectives and positive EBITDA impact of around EUR 30 million starting from 2023.
  • Revenue to reach EUR 1.47 billion, with an annual average growth (CAGR) of about 6.3%, showing an acceleration versus 2020-2022. The Group expects sales volumes to increase of both grey and white cement as well as of ready-mixed concrete in all geographical areas, with prices in line with the relevant market trends and a favorable cement price trend in Turkey. Significant growth is also expected in the aggregates sector also due to the start-up of a quarry business in Turkey.
  • EBITDA to reach around EUR 340 million, with an annual average growth (CAGR) of about 8.8% and an EBITDA margin to around 23% in 2023. EBITDA is expected to grow in all geographical areas, particularly in Turkey and in Belgium, as a result of the decline in 2020 due to COVID-19. The Group expects that in 2023 investments in digitalization started in 2019 will contribute around EUR 15 million to EBITDA and sustainability investments further EUR 15 million. Among the Plan assumptions there is an increase in the cost of fuel and electricity and a CO2 cost of around EUR 30/t, to be absorbed by cement price increases.
  • Annual capex of approximately EUR 66 million directed towards developing production capacity, maintaining plant efficiency and safety.
  • The expected cash generation driven by improved results and working capital optimization will allow to reach a net cash position already in 2022, which is expected to reach approximately EUR 250 million at the end of the Plan.
  • The Plan assumes dividends in line with 2020 for the entire three-year period.

Last update: 10/03/2021 | 12:44