Cemex has acquired a mortar plant near Madrid, Spain, as part of its ongoing strategy to increase EBITDA through bolt-on acquisitions, focusing on providing more sustainable alternatives to growing urban centres.
The new plant is equipped with the latest technology to enable the production of traditional and specialty mortars with enhanced sustainability attributes. Cemex’s nearby Castillejo cement plant will supply lower-carbon Vertua cement for mortar production. The mortar plant is located only 35 kilometres (22 miles) from Madrid, contributing to reduce the overall Scope 3 emissions related to product transportation. The plant will form part of Cemex’s Urbanisation Solutions business and is expected to reach 100,000 tonnes of production at full capacity.
“A cornerstone of our growth plan is using strategic bolt-on acquisitions to increase our capacity to serve growing urban markets with more sustainable and innovative products,” said Sergio Menéndez, president of Cemex Europe, Middle East, Africa & Asia. “This new plant will bring us closer to our customers in the expanding Madrid market, providing them with innovative building solutions for more sustainable construction.”
Mortar is essential to many construction projects, particularly for building renovations in developed markets. Mortars are binding agents that use cement to hold bricks, concrete blocks, and other masonry materials together. Specialty mortars can be used to install other materials such as ceramic and tile. Cemex offers a wide range of mortars in its markets worldwide as part of its Urbanisation Solutions business.
Cemex’s bolt-on acquisition strategy and its Urbanisation Solutions business have been strong growth drivers. For the first quarter of 2023, the company reported EBITDA growth of 34% in its Urbanisation Solutions business and an incremental EBITDA contribution of US$40mn from growth investments and Urbanisation Solutions.
