Within the framework of the streamlining and strengthening process of the production structure that has been underway for some years now, and following the persistently low business of the construction market, especially in some areas of the Italy, Buzzi Unicem finds itself in the position of having to proceed with the cessation of operations at the Testi/Greve in Chianti plant of the subsidiary Testi Cementi S.r.l. and of the Arquata Scrivia Grinding Center of the subsidiary Arquata Cementi S.r.l.

This decision has become necessary in order to adapt Buzzi Unicem's Italian operations to the conditions of a market context that has shown a significant slowdown in the construction sector for more than a decade. In spite of the announcements of significant investments and public stimuli destined for large infrastructural works and, more generally, for the building industry, there has been a lack of expected improvement in sales volumes, also as a result of the Covid-19 emergency.

The domestic market has fallen from almost 47 million tons of production in 2006 to 19 million tons in 2019, with a 2020 closure of approximately 17 million tons of production.

Buzzi Unicem will implement the announced plan in compliance with the regulatory measures that have halted the workforce reduction operations until March 31, 2021 and until that date the ordinary redundancy fund (CIG) Covid-19 will remain active, pursuant to the emergency regulations in force. The Company is committed to offering mitigation tools that will be discussed with the trade unions during the negotiations, in order to minimize as much as possible, the impact on the personnel involved.

The production sites will be decommissioned in accordance with the provisions of the environmental authorizations in force in cases of cessation of activities, complying with all the requirements relate to environmental protection.