Economic stability is a key in any business, and especially so in a business with extremely long-term asset investments. The long-term position has to be strengthened, reserves of limestone secured for the future and the customer satisfaction needs to be continuously in focus. Sustainability perspective is part of all decisions and actions.
Turnover & EBITDA 2017-2019
During 2019, Nordkalk’s sales developed positively in the regions Scandinavia (SCD) and Central Europe (CE), with growth in almost all customer segments. In the region North East Europe (NEE), the market situation was challenging.
Nordkalk Group’s turnover decreased in comparison to 2018, but the trend improved clearly towards the end of the year. EBITDA increased clearly in comparison with 2018, as a result of the performance improvement programme that was started at the beginning of 2019, leading to significant improvements throughout the company.
In order to secure future growth and sustainable development, Nordkalk’s strategy was revised at the end of 2019. The strategy work was based on the analyses of Nordkalk’s operating environment, activities and business opportunities that were performed as part of the performance improvement programme.
The revised strategy drives growth in the limestone business and has a strong focus on sustainability, promoting activities in circular economy and taking steps towards fossil-free operations. The strategic priorities are increased limestone offering and new circular products; driving growth in the customer segments Agriculture, Construction and Chemical Industry; expanding our market and geographical presence through acquisitions and partnerships; and developing limestone reserves. The performance improvement programme will continue to strive for operational excellence
Develop limestone reserves
Securing access to limestone is the fundament of Nordkalk’s business. In 2019, we extracted 13 million tonnes of limestone. It represents less than 5% of the company’s total reserves, which we aim to secure for a minimum of 20 years per site.
Exploration drilling projects and permit processes aiming at securing the reserves are run on a continuous basis. In 2019, such active development projects were ongoing in Miedzianka and Slawno, Poland, in Ukraine, on Gotland island, in Karinu, Estonia, and in Lappeenranta, Finland.
In Ignaberga, Sweden, and in Klinthagen on Gotland island, new environmental permits enabling extraction were granted, though the latter is subject to an appeal process. In Mustio, Finland, there is an active permit, but the environmental permit for an extension has been appealed. In Orsa, Sweden, an updated permit application was submitted.
In the customer survey made in 2017 the customer satisfaction index showed a good level. As a result of the reorganisation effective from 1 November 2019, Nordkalk has put more focus on Key Account Management. During 2020 the Nordkalk sales team will carry out in-depth analyses, including interviews, of selected customers, in order to even better understand our customers’ future needs and how we can generate long-term value for our customers.
Effective and prompt corrections to reasons for customer claims often require thorough work and the cooperation of several departments. Each department needs to make customer claims a high priority so that we can take rapid action. The percentage of claims closed within two months, improved from 17% to 15% in 2019.
- Economic performance and growth
- Secure limestone reserves
- Customer satisfaction
WE COMMIT TO
- long-term profitable growth, thus creating value for generations of stakeholders
- securing limestone reserves long into the future
- being a long-term, loyal partner for our customers
- providing local jobs and taxes
- being transparent in our reporting practices
- emphasising the sustainability perspective in all decisions and actions.
Nordkalk is the leading limestone company in Northern Europe. We deliver essential raw materials to numerous industries, and our solutions contribute to clean air and water as well as productivity of agricultural land.