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 2021-2023 Industrial Plan

The 2021-2023 Industrial Plan, presented on February 4, 2021, confirms and reinforces our sustainable growth strategy focused on green investments, aimed at reducing the environmental impact, leveraging on product innovation, the digitalization of industrial processes and on further improvement of profitability and operating efficiency.

The green capex and the 2030 objective of reducing CO2 emissions

Cementir has given a strong acceleration to investments in sustainability and digitalization with green investments of around 107 million Euro 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

The strategic priorities of the 2021-2023 Industrial Plan

  • 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

    Production of new cement types based on FuturecemTM technology, developed and patented by Cementir, which enables a reduction of clinker content and consequently of CO2 emissions;

    Development of high value-added products and innovative applications including Ultra-High-Performance Concrete (UHPC), Glass-Fiber Reinforced Concrete (GFRC) and 3D printing.
        

  • Improve competitiveness

    Initiatives aimed at improving efficiency and containing costs in all geographic areas, with particular attention to lean manufacturing, logistics and maintenance.

  • Digitalization

    Continuation of the digitalization program of industrial processes Cementir 4.0 in cement plants using new digital technologies. Digital transformation focuses on the whole value chain, from procurement to production, maintenance and logistics processes;

  • Growth and positioning

    Further consolidation of white cement leadership through a series of specific actions to strengthen the position in main strategic markets.

    Improve our industrial and competitive presence, even seeking new acquisition opportunities in core business.

    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. 
     

Performance and financial targets of the 2021-2023 Industrial Plan

The Plan envisages the achievement of the following targets in 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 | 12:36