Titan Cement denies headquarter move

Titan Cement has denied reports in the press that it is moving its headquarters from Greece. In response to reports on online and printed media the country's second-largest cement producer said in statement released yesterday that: "it is not within its intentions to move its headquarters from Greece.”

Last week, Titan reported that demand for building materials in its troubled domestic market declined by about 35 per cent YoY in 2012. “The severe recession of the Greek economy has directly affected the building industry, which, after five years of continuous decline, has practically collapsed,” the company said. The group estimates that cement demand has shrunk to less than a quarter of 2006 peak levels,.

In full-year 2012, group turnover in Greece, which includes exports and the group’s terminals in Europe, stood at EUR240m posting an 11 per cent decline compared to 2011. EBITDA stood at EUR32m, representing a nine per cent reduction compared to the previous year. However, the rate of decline did slow in the fourth quarter.  Exports, which were hit by political events in North Africa in 2011, did recover to a more normal level, but prices were weak. 

Domestic demand is forecast to be down by a further 11.1 per cent YoY in 2013 but, hopefully, stabilise after that and eventually recover. However, no rebound to the previous high levels seen in the early 2000s should be expected.