CEMEX has acquired a 51% stake in Israel-based SHTANG Recycle, a construction, demolition, and excavation waste (CDEW) recycling company. The acquisition aligns with CEMEX's strategy to strengthen its business in developed markets through bolt-on acquisitions in businesses with strong circular and sustainable attributes.
SHTANG Recycle (SHTANG) will form part of Regenera, CEMEX’s recently launched business that provides circularity solutions, including reception, management, recycling, and waste coprocessing. SHTANG has been awarded a 13-year license to build and operate a CDEW recycling facility. The enclosed, state-of-the-art facility will be capable of processing approximately 600,000 tons of waste annually. The CDEW will be used by Regenera as raw materials for aggregate production, reintegrating them into the construction value chain.
“We are committed to continuing making investments that promote a more circular and sustainable construction industry and strengthen our Urbanisation Solutions business,” said Fernando A. Gonzalez, CEO of CEMEX. “Concrete is an infinitely recyclable material. Through smart CDEW management, we can reduce waste generation and produce building materials with more sustainable attributes.”
CEMEX’s Urbanisation Solutions business has highlighted CEMEX’s recent performance. In its third quarter 2022 report, the company announced double-digit growth in both sales and EBITDA for this business. Through Regenera, CEMEX aims to serve a diverse client base, including industrial, manufacturing, and waste collection companies, NGOs, and governments.
Regenera provides sustainable solutions for three major waste streams: municipal and industrial waste, construction, demolition, and excavation waste (CDEW), and industrial byproducts. Regenera is present in CEMEX’s four regions: Mexico, the US, Europe, the Middle East and Asia, South-Central America and the Caribbean.
This acquisition supports Future in Action, CEMEX’s program to achieve sustainable excellence through climate action, circularity, and natural resource management with the primary objective of becoming a net-zero CO2 company. It is also another example of the success of the company’s strategic growth strategy, through which CEMEX is optimising its portfolio for EBITDA growth with bolt-on investments in its core businesses that leverage sustainability as a competitive advantage.
