Heidelberg Materials acquires leading Berlin recycling company

Ancillary Equipment / November 28, 2022
By Guy Woodford
Heidelberg Materials is acquiring Berlin-based RWG Holding

Heidelberg Materials is acquiring Berlin-based RWG Holding (RWG), subject to approval by the relevant antitrust authorities. The acquisition of RWG, an integrated provider in the demolition and construction materials recycling sector and the market leader in the greater Berlin area, will strengthen Heidelberg Materials' circular materials offering to meet the growing demand for sustainable building materials.

The processing of concrete demolition waste will increasingly allow the prioritising of recycled aggregates over primary raw materials and the supply of 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.

Demolition and recycling
An RWG demolition and recycling work site. Pic: Garbe Gruppe

"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 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 RWG 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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