- Heidelberg Materials acquires RWG Holding GmbH based in Berlin, Germany
- Investment strengthens activities in circular economy
- Reuse of building materials and concrete recycling are key to achieving Heidelberg Materials' ambitious climate targets
Heidelberg Materials will take over Berlin-based RWG Holding GmbH, subject to approval by the relevant antitrust authorities. RWG is an integrated provider in the demolition and construction materials recycling sector and the market leader in the greater Berlin area. The acquisition will strengthen Heidelberg Materials' circular materials offering to meet the growing demand for sustainable building materials. The processing of concrete demolition waste will allow 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. In Germany, Heidelberg Materials offers significantly CO2-reduced concretes with recycling content as part of its sustainable EcoCrete portfolio.
“With the acquisition of RWG, we are substantially strengthening our activities in the circular economy,” said Dr Dominik von Achten, Chairman of the Managing Board. “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 excellently located, modern recycling centres across Berlin and a professional demolition business with a yearly revenue of around €50 million. It perfectly complements Heidelberg Materials’ existing Berlin footprint. Today, 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. 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.
