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Given the forecasted growth, the group plans to expand its businesses to African countries such as Mozambique, Ghana and Tanzania, CEO Carlo Pesenti said during an interview last week with the Bangkok, Thailand-based Nation Multimedia Group.
"The company foresees better performance in Asia, including Thailand, with revenue for the continent projected to grow 3-6 per cent this year, while overall growth for the company will be 2-3 per cent," said Pesenti.
Italcementi reported consolidated global revenue of €4.15 billion for 2014, down 1.8% from 2013, with economic stagnation in the EU cited as the reason for the dip.
For 2015, Pesenti said the areas in which the group operated would see a recovery in North America and Asia, growth in the volume of demand in Egypt, and relative demand stability in Mediterranean Europe, although the market would weaken in France.
Under those conditions, higher Italcementi sales volumes and good sales price levels will support an upturn in margins, in addition to the positive effect on results of the appreciation of foreign currencies against the euro and the reduction in energy costs since the beginning of the year, he explained.
However, performance forecasts for some key markets continue to reflect elements of volatility, he added.
The Italian company’s chief executive said he saw Asia, including Thailand and India, plus Africa as areas of great potential, as emerging growth required more investment in infrastructure development.
Economic recovery in the euro-zone would also make the group's business expansion more stable, Pesenti added.
"The results achieved last year confirm the validity of the action plan we have been implementing in recent years, culminating with the operating start-up of the strategic investments completed during the year in Italy and Bulgaria," Pesenti told the Nation Multimedia Group.
In line with its forecasts, as signs of an economic recovery emerge, the company now has a largely upgraded and highly efficient industrial network, backed by independent renewable electrical-energy production covering more than 11% of its total requirement.
This capacity exceeds targets and could rise with the additional initiatives the company has planned, including an important wind farm in Egypt to counter local energy shortages, which have been limiting the group's cement-production capacity in recent months, he said.
In addition to boosting industrial efficiency, the group has strengthened its focus on innovative materials and services with high added value.
With the new i.nova product-offering system fully operational, the innovation rate - the proportion of innovative products to total sales - rose to 6.6% last year from 5.3% in 2013, and the industrial contribution margin grew by 11% from the previous year.
Italcementi expects to maintain its investment in innovation at the same rate this year, Pesenti concluded.
