Cemex acquires mortar plant to better serve Madrid’s urbanization needs
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 centers.
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 km from Madrid, contributing to the reduction of the overall Scope 3 emissions related to product transportation. The plant will form part of Cemex’s Urbanization Solutions business and is expected to reach 100000 t 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.”
Mortars are binding agents that use cement to hold together bricks, concrete blocks, and other masonry materials. Specialty mortars can be used to install other materials such as ceramic and tile. Mortar is essential to many construction projects, particularly for building renovations in developed markets. Cemex offers a wide range of mortars in its markets worldwide as part of its Urbanization Solutions business.
Cemex’s bolt-on acquisition strategy and its Urbanization Solutions business have been strong growth drivers for the company. For the first quarter of 2023, the company reported EBITDA growth of 34% in its Urbanization Solutions business, and an incremental EBITDA contribution of US$ 40 million from growth investments and Urbanization Solutions.
