CEMEX Advances Circular Economy Bid With SHTANG Acquisition
CEMEX, one of the major players in the global concrete and cement industry, announced it acquired 51% of an Israeli construction material recycling company. CEMEX said that this acquisition is in line with its acquisition strategy focused on developed markets and greener solutions for the construction industry.
SHTANG Recycle, the Israeli company in question, is focused on recycling construction, demolition and excavation waste (CDEW). SHTANG will be part of REGENERA, a business branch that provides circular economy solutions via the collection, management, recycling and processing of waste. The acquisition is expected to strengthen CEMEX as SHTANG has been awarded a 13-year license to build and operate a CDEW recycling facility, capable of processing over 600,000t/y that REGENERA will use as raw materials.
According to Fernando González, CEO, CEMEX, the acquisition is a boon because concrete is an infinitely recyclable material and offers opportunities for the development of greener building materials. “We are committed to continuing making investments that promote a more circular and sustainable construction industry and strengthen our Urbanization Solution business,” González said.
CEMEX underlined that Urbanization Solutions was a fundamental factor in positive business results. In 3Q22, the company reported double-digit growth in Urbanized Solutions’ sales and EBITDA.
The acquisition supports CEMEX’s Future in Action program, which aims to employ climate action, circular economy efforts and natural resource management to become a net-zero company. CEMEX highlighted that optimizing an investment portfolio with sustainable projects gained it a competitive advantage.
In 2022, the company managed over 23 million tonnes of waste. It aims to increase this amount by 80% in 2023.
SHTANG is CEMEX’s second acquisition in 2023. On Jan. 24, 2023, CEMEX acquired Atlantic Minerals’ construction and chemical aggregates quarry and port operations in Newfoundland, Canada. “This acquisition significantly grows our aggregates business with high-quality materials and bolsters our supply chain to better serve the aggregate-constrained Florida market and grow our US customer base,” said Jaime Muguiro, President, CEMEX USA.