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 2022-2024 Industrial Plan
The 2022-2024 Industrial Plan, presented on February 8, 2022, confirms a renewed commitment to sustainable growth, aiming to mitigate the impact on the environment, foster product innovation and seek operational excellence, as tools to continue to grow and generate higher returns.
Green capex for our decarbonization path
Cementir has given a strong acceleration to sustainability and digitalization investments with a cumulative green capex of around 97 million Euro in the period 2022-2024.
97 million green investments in the 2022-2024 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|
The strategic priorities of the 2022-2024 Industrial Plan
Sustainability and target of 30% CO₂ emissions reduction by 2030
Cementir has defined specific medium and long-term 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.
By 2030, the Group aims to reduce CO2 emissions (scope 1) by 30% compared to 1990 levels. The 2030 objectives have been validated by the Science Based Target initiative and are consistent with the goal of maintaining global warming "well below 2°C". As part of the 2030 roadmap, significant investments in sustainability are planned, of which EUR 116 million will fall in the 2022-2025 period.
These investments will include, among others: the construction of a new kiln at our Belgian plant in order to increase alternative fuels use from current 40% to 80%; the switch to natural gas and biogas in some plants; the extension of district heating and other energy efficiency projects. There are also initiatives to reduce transport climate change impact and make the best possible use of water resources.
It should be noted that the new kiln in Belgium, originally scheduled for 2021, has been postponed by one year due to delays attributable to the pandemic, to the increase in raw materials cost, to the unavailability of resources and lack of supplies.
The Group plans to significantly increase the production low carbon cement such as FUTURECEM®, which enables clinker content reduction and therefore CO2 emissions reduction by approximately 30%. Other sustainable and high value-added products at an advanced stage of development and commercialization include: Ultra-High-Performance Concrete (UHPC), Glass-Fiber Reinforced Concrete (GFRC), concrete for 3D printing.
Some pilot projects are also being undertaken in Carbon Capture, Usage and Storage, with the participation of leading industrial and technological partners.
Initiatives aimed at improving efficiency and containing costs in all geographic areas, with particular attention to lean manufacturing, logistics and maintenance.
Continuation of the digitalization program of all processes (program Cementir 4.0) with the introduction of digital technologies to increase efficiency and quality of products and services provided. Digital transformation focuses on the entire value chain, from procurement to production processes, maintenance, logistics and corporate functions.
Growth and positioning
Besides the consolidation of its leadership in white cement globally, the Group will remain ready to seize any acquisition opportunities in the core businesses to improve its industrial and competitive positioning.
Trading activity is also expected to grow over the three-year Plan in order to optimize purchases and logistics of raw materials, fuels, spare parts and finished products.
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.
Performance and financial targets of the 2022-2024 Industrial Plan
The Plan envisages the achievement of the following targets in 2024:
- Revenue expected to reach EUR 1.65 billion, with an annual average growth rate (CAGR) of 6.7%. An increase in the sales volumes of cement, ready-mixed concrete and aggregates is expected in all geographical areas, with price increases especially in the cement sector in the course of 2022, to offset the significant increase in energy, raw material and logistics costs.
- EBITDA1 to reach around EUR 350 million, with an annual average growth rate (CAGR) of about 5%. EBITDA is expected to grow in all geographical areas with the exception of Turkey. Among the Plan assumptions there is a double-digit increase in the cost of fuels and electricity and an average yearly CO2 shortage of approximately 500,000 tons, whose economic impact is mitigated by an indexed mechanism between product pricing and extra CO2 cost.
- Annual capex of approximately EUR 72 million directed towards developing production capacity, maintaining plant efficiency and safety.
- Cumulative Green capex of EUR 97 million, for specific sustainability projects enabling, among others, CO2 emissions reduction in line with Group’s objectives.
The expected cash generation driven by improved results and working capital optimization will allow to reach a 2024 net cash position of over EUR 300 million.
The Plan assumes the distribution of a growing dividend, corresponding to a payout ratio between 20% and 25%.
1 EBITDA excludes non recurring items