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Ciech

Szukaj

Strategy

Strategy

The CIECH Group is a leader among chemicals manufacturers on the Central European market, leader in chemical industry in Poland, concentrating domestic and foreign production, trading and service companies operating in the chemical sector. The Group is an important domestic producer in the chemical sector, focusing its operations mainly on the European Union markets.

The core activity of the CIECH Group is the production and sale of chemical products manufactured by the CIECH Group. Additionally the CIECH Group sells chemical products purchased from producers from outside the Group. In 2015, the main products sold by the Group on the Polish market included: soda ash, evaporated salt, baking soda, resins, plant protection products, glass packaging and other chemicals. The Group’s most significant exportation products included: soda ash, baking soda, epoxy resins and sodium silicates. The biggest foreign sales markets for the CIECH Group were European Union countries.

The strategic objective is the maximisation of the value of the CIECH Group, mainly through

the development in the area of soda. In addition, the strategic objectives of CIECH Group include:

  • Increase of revenues in the soda segment,
  • Doubling the share in the Polish market of plant protection products,
  • Increase in normalised EBITDA,
  • Increase of the value of the Company. 

The strategy is to achieve the following financial objectives of the CIECH Group:

  • Average annual sales revenue (2014–2019): approx. PLN 3.8 billion,
  • Average normalised EBITDA (2014–2019): approx. PLN 660 million,
  • Average normalised EBITDA margin (2014–2019): approx. 17%,
  • Net debt to EBITDA ratio below 1.00 in 2019.

For the purpose of calculating the ratio, the estimated average annual dividend yield was determined at 3%. The value of the dividend and its distribution will depend on the market situation and the financial position of the CIECH Group.

The objectives will be implemented through, among others: 

  • The strengthening of the leader's position in the soda segment in the key European markets through, among other things, effective acquisition of new clients, improvement of the quality of products, strengthening of the position of preferred supplier, and development of more processed types of baking soda.
  • Consistent strengthening of the market position in the organic segment through, among other things, an increase of the production effectiveness and an increase in the use of the production capacity (plastic and plant protection products).
  • Optimisation of the product portfolio, development of highly processed products to meet the customer requirements (plastic), geographical expansion (plant protection products), with the support of CIECH R&D Sp. z o.o., a company which is the Group’s R&D centre.
  • Completion of investments in the reconstruction and improvement of the production capacity, which, in the long term, will provide high quality and production cost effectiveness within the segment of silicates and glass.
  • Active steps taken for the purpose of identification and implementation of new development initiatives focusing on the building of the CIECH Group’s goodwill.

 

The "Strategy of the CIECH Chemical Group for 2014–2019 was adopted by Supervisory Board of CIECH S.A. on 3 November 2014.

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