algeriaCooperativa Muratori e Cementisti (CMC) di Ravenna

Company Profile and History

CMC was founded in Ravenna in 1901 by a group of 35 masons that established the "Società anonima cooperativa fra gli operai, muratori e manovali del Comune di Ravenna" (Anonymous Co-operative among workers, masons and hodmen of Ravenna Municipality). In 1909 the Company merged with the "Cementisti" (Cement Workers Company).During the post-war period the Co-operative took part in the reconstruction process and in the considerable growth of Italy's infrastructure and industrial structure. Since 1965, CMC has successfully participated in the construction of the first domestic highways.

In 1975 CMC began operating overseas with the award of a project in Iran. In the eighties CMC operated particularly in Africa constructing silos and flour mills (Algeria), roads (Somalia, Tanzania, Ivory Coast and Burkina Faso) and dams (Mozambique, Botswana, Zimbabwe, Tanzania, Algeria).

CMC’s entry in the Algeria market dates back to 1978 with the first contract awarded to the cooperative for the execution of the SN Sempac silos and mills complex. It was a turnkey contract for the construction of three silos and mills complexes with a total capacity of 12,500 tons and milling plant.

A second turnkey contract followed: the OAIC eight silos complexes with a capacity of 40,000, 30,000 and 25,000 tons. From 1984 to 1987, CMC completed the Dahmouni earthfill dam; between 1983 and 1988 CMC was engaged in the construction of two further major projects in Alger: the El Baraki water treatment and purification plant and the Rive Gauche sewer trunk line.

In Country Location

Algeria, CMC Ravenna Eurl, Lotissement El Feth n.9, Sable Rouges – El Biar, Algeri
Telephone: +00213 21 922677
Telefax: +00213 21 923135

Services and Products

CMC’s range of activities comprises the following business segments: transport (roads, motorways, tunnels, bridges and viaducts, railways and urban light railways, airports), water and irrigation works (dams, hydroelectric plants, tunnels, aqueducts, irrigation channels), building projects (civil and public buildings, executive and service buildings, hotels and resorts, industrial plants, maintenance and refurbishment), ecology and environment (water treatment, sanitation services, sewage systems, treatment of toxic waste), ports and marine works (coastal protection, piers, and jetties, dredging)

Number of Employees

CMC has a permanent staff of 509 people, 377 who are also members of the cooperative, and currently employs 5 795 people worldwide. The number of employers per country is determined by the start-up/completion of projects.

Financial Information

CMC di Ravenna’s 2008 consolidated turnover was € 701 million (252 million of which overseas) and a profit before taxes of € 13, 5 million. Cash flow amounts to € 39, 6 million. The Group’s consolidated turnover is expected to be € 769 in 2009 and € 1.000 million in 2011.

In 2008 acquisitions amounted to € 1, 6 billion euro (1.074 million overseas and 524 million in Italy) and in the first half of 2009 new contracts have been awarded to CMC for around € 275 million (146 million in Italy and 129 million overseas).

Cmc Group Performance Review
In millions of Euro 2007 2008
Turnover 650,8 701,8
Ebitda 65,2 61,5
Operating income 29,1 31,0
Income before taxes 12,7 13,5
Net income 6,4 9,1
Shareholders loan 13,1 13,6
Consolidated net equity 87,2 93,5
Net debt (91,4) (60,8)
Order book 1.902 2.984
Number of Shareholders 376 377
Number of employees 5.087 5.795
Cash Flow 40,9 39,4
Net income to turnover 1,0% 1,3%
Return on equity (R.O.E.) 7,3% 9,7%
Net debt to equity 1,05 0,6
Net debt to turnover 14,0% 8,6%
Construction activities abroad are as follows (in million Euros):

As of June 30, 2008 the order book amounts to about 2.9 billion Euros (2.3 billion Euro excluding the Messina Bridge and High-speed railroad in Val di Susa):

Market Share

CMC is presently engaged in the execution of four major projects in Algeria:

  • The Koudiat Acerdoune Dam: The total contract value is 245 million Euro and work, is carried out by CMC (40% participation) in association with the French contractor Razel S.A;  
  • The El Affroun-Hoceina section of the East-West Highway: the “Agence National des Autoroutes (ANA)” of Alger awarded CMC the contract for design and construction of thirty bridges. The foreign portion of the project is financed by the Arab Fund of Economic Development (FADES) and the local portion by the Algerian Government. CMC, with a 70% share, is the leader of the executing group;  
  • Port of El Kala: the Ministry of Public Works awarded the contract to CMC for the construction of the port of El Kala. The works, financed by the Algerian Government, include the construction of two quays and various docking wharves. The total contract value is about 25 million Euro  
  • CMC di Ravenna was awarded the international tender called by the Water Resources Ministry, National Dams and Transfers Agency (ANBT) for the construction of the Thagarist dam in the Kenchela province. The contract is worth 50 million euro  

Business Objective

Ensure the growth of statutory reserves.

Business Model

CMC is focusing its strategy on large projects and “turn key” projects and to maintain and develop overseas operations in countries where its presence has already been consolidated, particularly in Southern Africa, the Mediterranean, China and in more recently in the Balkans. CMC also intends to develop its activities in the infrastructure and more complex building sectors with special emphasis on underground and hydraulic engineering, such as tunnels excavated by TBM (Tunnel Boring Machines).

Its current three year plans (2008-2010 and 2009-2011) focus on: reinforcing its position in the construction sector, with particular focus on large projects-the objective is to keep annual productive volumes of the entire Group between 650 and 700 million Euros; reinforcing commercial policies and aiming to acquire contracts which: offer satisfactory margins of remuneration and allow the company to maintain an average portfolio of orders of about 1.5 billion Euros; and controlling general expenses on turnover at present levels.

Ownership of Business

CMC DI RAVENNA Eurl Algeria-100, 00%

Product Development

In the late eighties CMC enlarged its overseas activity with new and more sophisticated specialisation in the underground and hydraulic engineering sectors.