Cemex expands Regenera circularity business with acquisition in Berlin

Rhea-AI Summary

Cemex has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling company part of the Heim Group, to expand its Regenera circularity business. The Berlin-based facility can process up to 400,000 tons of construction, demolition, and excavation materials (CDEM) annually, which will be repurposed into aggregates for concrete production. This acquisition aligns with Cemex's commitment to circularity and promoting a more circular economy.

The facility also operates Germany's first plant to permanently store biogenic CO₂ in recycled mineral waste. In 2023, Regenera recovered over 9 million tons of CDEM and aims to recover 14 million tons annually by 2030. Cemex recently partnered with the Ellen MacArthur Foundation to further leverage the cement value chain's potential in circularity.

Positive

• Acquisition expands Cemex's Regenera circularity business
• Acquired facility can process 400,000 tons of CDEM annually
• Facility includes first plant in Germany to store biogenic CO₂ in recycled mineral waste
• Regenera recovered over 9 million tons of CDEM in 2023
• Partnership with Ellen MacArthur Foundation to leverage cement value chain in circularity

Negative

• None.

Insights

Financial Analyst

Cemex's acquisition of RC-Baustoffe Berlin marks a strategic move to expand its Regenera circularity business. This aligns with the growing trend of sustainable practices in the construction industry. The facility's 400,000-ton annual processing capacity could significantly boost Cemex's recycled aggregate production, potentially leading to cost savings and new revenue streams. However, the financial terms of the deal were not disclosed, making it challenging to assess the immediate impact on Cemex's balance sheet. Long-term benefits could include reduced raw material costs, improved environmental credentials and potential regulatory advantages in markets prioritizing circular economy practices. Investors should monitor how this acquisition integrates with Cemex's existing operations and its contribution to the company's 2030 goal of recovering over 14 million tons of CDEM annually.

Environmental Sustainability Expert

This acquisition demonstrates Cemex's commitment to circular economy principles in the construction sector. The integration of RC-Baustoffe Berlin, with its ability to process 400,000 tons of CDEM annually, significantly enhances Regenera's capacity to reintroduce materials into the construction value chain. Of particular interest is the facility's capability to permanently store biogenic CO₂ in recycled mineral waste, a pioneering approach in Germany. This aligns with global efforts to reduce the carbon footprint of the construction industry. The move could position Cemex favorably in markets with stringent environmental regulations and growing demand for sustainable building materials. However, the effectiveness of this strategy will depend on the scalability of the CO₂ storage technology and its integration into Cemex's broader sustainability initiatives.

Market Research Analyst

Cemex's expansion in the circularity business through this acquisition is a savvy market move. With construction and demolition waste accounting for over 30% of global waste streams, there's significant untapped potential in this sector. The partnership with the Ellen MacArthur Foundation further solidifies Cemex's position as a leader in circular economy practices within the construction industry. This could enhance brand value and appeal to environmentally conscious customers and investors. Market trends indicate growing demand for sustainable construction materials, which could drive revenue growth for Regenera. However, success will depend on factors such as regulatory support, market acceptance of recycled materials and Cemex's ability to scale these operations efficiently. Investors should watch for potential shifts in market share and any premium pricing Cemex might command for its circular economy products.

MONTERREY, Mexico--(BUSINESS WIRE)-- Cemex announced today that it has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling company and part of the Heim Group, as part of its ongoing efforts to grow its circularity business. The Berlin-based company processes mineral construction, demolition, and excavation materials (CDEM).

This acquisition will integrate with Regenera, Cemex’s business that provides circularity solutions to extend the life cycle of construction products and materials through reuse in value-added products. The acquired recycling facility can process up to 400,000 tons of material per year, which Regenera will turn into repurposed aggregates for concrete production, reintroducing them into the construction value chain. In addition to its recycling capabilities, RC-Baustoffe Berlin operates the first plant to permanently store biogenic CO₂ in recycled mineral waste in Germany.

“The cement value chain is a valuable contributor to the circular economy with concrete being an infinitely recyclable material,” said Fernando A. González, CEO of Cemex. “With acquisitions such as this, Cemex continues to strengthen its commitment to circularity through Regenera as well as promoting the world’s transition to a more circular economy. Construction and demolition waste accounts for more than 30% of global waste streams and reintegrating these materials into the construction value chain can reduce the use of virgin raw materials."

"We've been collaborating with Cemex on recycled aggregates for several years, and the company has consistently proven to be a reliable partner in the Berlin metropolitan market,” said Philipp Heim, Managing Partner of the HEIM Group. "Given its strong commitment to sustainability and the circular economy, Cemex is the perfect partner to guide RC-Baustoffe Berlin toward a successful future."

Regenera recovered over 9 million tons of CDEM in 2023 and has an objective of recovering over 14 million tons annually by 2030. Earlier this year, Cemex partnered with the Ellen MacArthur Foundation, the world’s leading circular economy network that works with ambitious, like-minded organizations globally to continue to leverage the potential of the cement value chain in circularity.

About HEIM Group

The HEIM Group, based in Ulm, Germany, was founded in 1919 as a paving company. Today, the group employs around 550 people at locations in Ulm, Thuringia, Saxony, Brandenburg and Berlin and has expanded its portfolio to include building materials extraction, recycling and agriculture in addition to construction. The group has also been active in the field of renewable energies for 20 years. The recycling plant in Berlin-Marzahn was acquired by the Heim Group in 2001. Since then, mineral building materials such as bricks and concrete have been recycled in Bitterfelder Strasse and electricity has been generated by a photovoltaic system. The group of companies is managed by Philipp Heim, the fourth generation of the Heim family to do so. Further information can be found at www.heim-gruppe.de

About Cemex

Cemex is a global construction materials company that is building a better future through sustainable products and solutions. Cemex is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. Cemex is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the help of new technologies. Cemex offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience enabled by digital technologies. For more information, please visit: www.cemex.com

Except as the context otherwise may require, references in this press release to “Cemex,” ”we,” ”us,” ”our,” refer to Cemex, S.A.B. de C.V. (NYSE: CX) and its consolidated subsidiaries. This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Cemex intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These forward-looking statements reflect Cemex’s current expectations and projections about future events based on Cemex’s knowledge of present facts and circumstances and assumptions about future events, as well as Cemex’s current plans based on such facts and circumstances, unless otherwise indicated. These statements necessarily involve risks, uncertainties, and assumptions that could cause actual results to differ materially from Cemex’s expectations, including, among others, risks, uncertainties, and assumptions discussed in Cemex’s most recent annual report and detailed from time to time in Cemex’s other filings with the U.S. Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores), which factors are incorporated herein by reference, which if materialized could ultimately lead to Cemex’s expectations and/or expected results not producing the expected benefits and/or results. Forward-looking statements should not be considered guarantees of future performance, nor the results or developments are indicative of results or developments in subsequent periods. These factors may be revised or supplemented, and the information contained in this press release is subject to change without notice, but Cemex is not under, and expressly disclaims, any obligation to update or correct this press release or revise any forward-looking statement contained herein, whether as a result of new information, future events or otherwise, or to reflect the occurrence of anticipated or unanticipated events or circumstances. Any or all of Cemex’s forward-looking statements may turn out to be inaccurate. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. The content of this press release is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Cemex is not responsible for, and expressly disclaims responsibility for, the content of any third-party website or webpage referenced to or accessible through this press release, nor for any quote, expectation, or projection from any third-party contained herein. Certain data used in this press release was obtained from independent industry publications and reports that Cemex believes to be reliable sources. Cemex has not independently verified this data nor sought the consent of any organizations to refer to their reports in this document. Cemex is not responsible for any third-party information referenced or that can be accessed through this press release.

There is currently no single globally recognized or accepted, consistent, and comparable set of definitions or standards (legal, regulatory, or otherwise) of, nor widespread cross-market consensus i) as to what constitutes, a ‘green’, ‘social,’ or ‘sustainable’ or having equivalent-labelled activity, product, or asset; or ii) as to what precise attributes are required for a particular activity, product, or asset to be defined as ‘green’, ‘social,’ or ‘sustainable’ or such other equivalent label; or iii) as to climate and sustainable funding and financing activities and their classification and reporting. Therefore, there is little certainty, and no assurance or representation is given that such activities and/or reporting of those activities will meet any present or future expectations or requirements for describing or classifying funding and financing activities as ‘green’, ‘social’, or ‘sustainable’ or attributing similar labels. We expect policies, regulatory requirements, standards, and definitions to be developed and continuously evolve over time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903523182/en/

Analyst and Investor Relations - New York

Blake Haider

+1 (212) 317-6011

ir@cemex.com

Analyst and Investor Relations - Monterrey

Fabián Orta

+52 (81) 8888-4327

ir@cemex.com

Media Relations

Jorge Pérez

+52 (81) 8259-6666

jorgeluis.perez@cemex.com

Source: Cemex

FAQ

What company did Cemex acquire to expand its Regenera business?

Cemex acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling company part of the Heim Group, to expand its Regenera circularity business.

How much CDEM can the acquired facility in Berlin process annually?

The acquired recycling facility in Berlin can process up to 400,000 tons of construction, demolition, and excavation materials (CDEM) per year.

What is Cemex's goal for CDEM recovery through Regenera by 2030?

Cemex aims to recover over 14 million tons of construction, demolition, and excavation materials (CDEM) annually through its Regenera business by 2030.

How does this acquisition align with Cemex's sustainability goals?

The acquisition aligns with Cemex's commitment to circularity and promoting a more circular economy by repurposing construction waste into aggregates for concrete production.

What unique feature does the acquired facility in Berlin have regarding CO₂ storage?

The acquired facility in Berlin operates the first plant in Germany to permanently store biogenic CO₂ in recycled mineral waste.