Titan Cement prepares for US listing
Titan is getting ready to list its US subsidiary, Titan America, on the US stock exchange
Athens-listed cement giant Titan is getting ready to list its US subsidiary, Titan America, on the US stock exchange.
The group’s aim is to raise funds that will finance the its future development in the US market, which is also the largest for the Greek group. It is estimated that this process will be completed by the beginning of 2025.
Based on this year’s first quarter data, the US market contributed 60% of sales and 56.6% of operating profits (EBITDA). Sales amounted to 370.6 million euros (out of a total of €623.7 million ) and operating profits to €62.2 million (out of a total of €109.8 million).
The US subsidiary operates on the East Coast, leading the Florida markets, the New York / New Jersey metropolitan area, as well as the mid-Atlantic states.
As the group’s management reports, during the first quarter, despite heavy rains and bad weather, and the fact that the planned annual shutdowns of the two cement plants, for maintenance reasons, were carried out earlier, sales in the US increased and remained on a high level.
“Customer orders remain high and demand is string thanks to backlogs for both public and private projects. The impact of the Infrastructure Initiative (IIJA) is becoming increasingly evident, while the technology intensification act (CHIPS) is driving and empowering the transformation of the US industrial sector,” it notes.
At the same time, according to Titan’s management, the housing market remains at lower levels, however there is an expectation that the Federal Reserve (Fed) will relax its monetary policy within the year and that the activity in this sector will recover. Among the important developments is the fact that Titan America’s Roanoke, Virginia plant has been selected for a grant of up to $61.7 million from the US Department of Energy to develop innovative technology for the production line of thermally activated clay. Also, following the upgrades to the plants in Tampa and Norfolk, the group can now further supply its operating areas in the Southeast and Mid-Atlantic states and therefore meet the increased demand.
Notably, part of the production in Greece is exported to the US market.
According to the company, the outlook for the US market is positive as indicators in the construction industry remain positive, thereby supporting high sales.
“Also, investments in renewable energy, road projects, bridges, transport and water supply are expected to increase further. Price levels are expected to continue to provide support, in an environment characterized by continued limited supply but also by continued momentum from previous price increases,” notes the group’s management.
