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Prospects for 2012
In Greece, the halting of the downward trend in private construction and the expected restart in investments and public works are not discernible for the time being. The Group estimates that demand for its products will record a further considerable decline in 2012 and will account for approximately a quarter of the levels witnessed five years ago. The continuing operation of the country’s installed surplus cement production capacity is a direct function of the increase in exports.
In the U.S.A., the Portland Cement Association expect cement consumption to increase by a mere 1.3% in 2012, from the already depressed levels of recent years. However, signs that the market may be beginning to recover, are increasing.
In Southeastern Europe, economic growth is expected to gradually translate into increased cement consumption.
In Turkey, construction activity is expected to continue growing in 2012 but at a more moderate rate. In Egypt, although the political transition phase which the country is going through coupled with the social unrest and subsequent economic uncertainty render doubtful any forecast, there is restrained optimism as regards the expected cement demand levels.
In this context, the Group continues to focus its efforts on the strengthening of its financial fundamentals and the containment of costs. The two-year global reorganization plan underway is expected to yield material benefits in containing operating expenses, as will the continuous effort at reducing energy consumption and increasing the rate of alternative fuel substitution.
Despite the economic challenges, Titan remains focused on achieving the long-term strategic goals set and commitments undertaken in the context of the worldwide initiative on sustainable development in the cement industry, CSI (Cement Sustainability Initiative).