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Circular sustainability informs Heidelberg Materials acquisition

circular

Heidelberg Materials is set to acquire RWG, a German construction materials recycling company, keeping in line with Heidelberg’s investment strategy to put a focus on circular economy.

The reuse of building materials and concrete recycling are key to achieving the vast climate targets that Heidelberg Materials’s has set, as concrete demolition waste is still often disposed of in landfills or used in road construction, which does not match the potential of the material and its costly, energy-intensive production which Heidelberf.

Subject to approval by the relevant antitrust authorities, Heidelberg Materials will take over RWG, the integrated provider in the demolition and construction materials recycling sector and the market leader in the greater Berlin area.

The acquisition serves to strengthen Heidelberg Materials’ circular materials offering to meet the growing demand for sustainable building materials globally.

The additional processing of concrete demolition waste will also allow the company and the industry at large to increasingly prioritise recycled aggregates over primary raw materials and to offer ready-mixed concrete with a high recycling share in the greater Berlin area.

Speaking on the acquisition and the way in which Heidelberg Materials offers significantly CO2-reduced concretes with recycling content as part of its sustainable EcoCrete portfolio within Germany, Chairman of the Managing Board, Dominik von Achten, reiterated the importance of the circular economy to the company.

“With the acquisition of RWG, we are substantially strengthening our activities in the circular economy,” von Achten said.

“We want to offer circular alternatives for half of our concrete products by 2030. In this regard, the recovery of building materials and concrete recycling make a decisive contribution and are key to achieving our ambitious sustainability and CO2 reduction targets.

“With its expertise and assets in Germany’s capital, RWG is the ideal company to complement our portfolio in the German market. I am very pleased to welcome RWG’s 250 employees to the Heidelberg Materials family.”

The acquisition covers three modern recycling centres across Berlin and a professional demolition business with a yearly revenue of around 50 million euros.

The acquistion complements Heidelberg Materials’ existing Berlin footprint.

Heidelberg Materials is focused on driving innovative technologies to process concrete demolition waste and upgrade it for use in the construction cycle as a valuable material.

The acquisition is expected to be completed in the first quarter of 2023. Both parties have agreed not to disclose the financial terms of the transaction.

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