Cementir sets out plans in the run-up to 2020

In the company's 2018-20 business plan, Francesco Caltagirone Jr, chairman and CEO of Cementir, vowed to generate more value for shareholders, presenting his vision for the next two years. Cementir's revenue is expected to grow by 5.5 per cent between 2017 and 2020, with a target set at EUR1.34bn in 2020. EBITDA is expected to rise by 6.6 per cent to EUR270m from EUR223m in 2017.

To improve profitability and efficiency in all areas, the company would continues its drive to rationalise processes and contain costs as well optimise its purchases and logistics. In addition, it would focus on pricing as well as value-added products and services. As a result of these efforts, it expects to increase its EBITDA margin from 18.6 per cent in 2017 to 20 per cent in 2020.

In addition, a focus on cash generation would see both the optimisation of working capital, the implementation of a rigorous investment plan and lower financial costs to bring down net financial debt by EUR480m to EUR50m at year-end 2020 from EUR537m at year-end 2017. These figures included the cash-in from the sale of Cementir Italia (EUR315m) and the cash-out of EUR87m due to the acquisition of Lehigh White Cement Co.

On the R&D front, Cementir is developing special products and solutions, including ultra-high performance concrete (UHPC), glass fibre-reinforced concrete (GFRC), magnetic concrete mix and 3D concrete printing.